Russia’s economy showed signs of increasing weakness, with growth slowing, oil revenues plummeting, and inflation again a worry.
Moscow has so far avoided the collapse that experts had predicted after sanctions were imposed over its full-scale invasion of Ukraine, largely by dedicating huge spending to defense. But the effects of that spending spree may be coming into view: Growth slowed to 1% in 2025, Russian President Vladimir Putin acknowledged, and taxes from crude sales — crucial for government coffers — halved in January compared to the year before.
Though inflation has slowed, “economic authorities are still on high alert,” The Bell, which focuses on Russia’s economy, noted, while Commerzbank warned in a note to clients that the ruble’s “fundamental outlook is deteriorating.”
