Kremlin's war economy shows cracks as military spending boom fades
The slowdown indicates that Western sanctions, though not a knockout blow, are increasingly damaging the Russian economy.
Russian Economy
Iran reportedly preparing to mine Strait of Hormuz, a possible boon for Russia's Ukraine war coffers
If the Strait were mined, Iran could block one-fifth of global oil demand and spike world energy prices — a boon for Russia's oil-dependent economy.
Putin under pressure to declare war on Ukraine, but experts say Russia isn't ready
Despite suffering over 1 million casualties, pounding Ukrainian cities nightly with missiles and drones, and committing countless war crimes, one startling fact about Russia's full-scale invasion remains — Moscow has yet to officially declare war on Ukraine. In February 2022, Russian President Vladimir Putin described what he believed was going to
Putin insists the Russian economy is fine, but Kremlin officials say otherwise
In a rare public sign that all is not well in Russia, two high-ranking Moscow officials last week issued separate warnings about the state of the country's economy. Russian Central Bank Governor Elvira Nabiullina and Economy Minister Maxim Reshetnikov both highlighted that amid the Kremlin's full-scale war against Ukraine, the
Russian economy recession warnings 'greatly exaggerated,' Putin claims, denies war in Ukraine 'killing' growth
The statement comes after warnings from his own officials about stagnation and looming recession.
Russia's war-fueled economy is running on empty, Central Bank chief warns
"We grew for two years at a fairly high pace because free resources were activated," Russia's Central Bank Governor Elvira Nabiullina said.
Russia 'on the verge' of recession, Kremlin economy minister warns
"According to current business perceptions, we are already, it seems, on the verge of a transition to a recession," Russian Economy Minister Maxim Reshetnikov said at the St. Petersburg International Economic Forum.
After 3 years of full-scale war in Ukraine, Europe finally lays out road map to detox from Russian oil and gas
After three years of limited measures and political hangovers, the European Union has laid out a legal roadmap to finally end its long-standing addiction to Russian oil and gas. Under a new legislative proposal announced in Strasbourg on June 17, Brussels aims to cut off all remaining imports of Russian
As Russian losses in Ukraine hit 1 million, Putin's war economy heads toward breaking point
Russian losses in Ukraine hit a massive, and grim milestone on June 12 — 1 million Russian soldiers killed or wounded during the 39-month-long full-scale war, according to figures from Kyiv. Although hugely symbolic, the number is unlikely to prompt a change in tactics from Moscow as it gears up for
What Russia's 1 million casualties mean for Ukraine
The Kyiv Independent's Chris York sits down with George Barros, team lead for the Russia and Ukraine portfolio at the Institute for the Study of War, to discuss what Russia’s approaching one million casualties mean for its war effort in Ukraine. They explore how the Kremlin might generate more forces — and what impact this could have on Russia’s economy.
Western firms reportedly paid at least $46 billion in taxes to Russia amid full-scale war in Ukraine
Seventeen of the 20 largest foreign corporate taxpayers in Russia come from G7 and EU countries, which are Ukraine's main international supporters, according to investigative outlet Follow the Money.
Russia cuts key interest rate for first time since 2022
The decision reflects a decrease in inflation and mounting political pressure to ease borrowing costs amid Russia's economic slowdown.
Russian central bank head under pressure to slash key interest rate, Bloomberg reports
The reason is the growing toll on the federal budget and civilian industries, three officials told Bloomberg, with some calling for the decision to be made at the bank's meeting on June 6.
Despite Russia’s claims, sanctions are working — Ukraine just needs Trump to impose more
Ukraine’s allies have imposed sweeping sanctions on Russia and its supporters over the full-scale war, but experts say there’s room for more.
Putin calls to 'strangle' Western companies still operating in Russia
"We should strangle them. I agree completely. I'm speaking without any shame, because they're trying to strangle us," Russian President Vladimir Putin said.
Russia’s top exporters slash rail shipments amid economic slowdown, Reuters reports
A document seen by Reuters reveals that firms such as Rusal and Gazpromneft intend to reduce the volumes they plan to move by rail in 2025, prompting Russian Railways to slash spending by an additional 32.5 billion rubles ($408 million).
Russia cuts key projects in aviation, tech, auto industries as oil revenues plummet
The Russian government is slashing budgets for major projects across a number of sectors amid an economic downturn and oil price collapse, the pro-Kremlin news outlet Kommersant reported.
Russia's economic growth slowing down, Rosstat reports
Russia's economy is experiencing a sharp slowdown in growth, according to a report released by the governmental statistics agency Rosstat on May 16. GDP only grew by 1.4% in the first quarter of 2025 – a notable decline from 4.5% growth in the previous quarter and 5.4% in the same period last year.
Despite growth claims, Russia’s war economy shows deep risks, Reuters reports
"Contrary to Kremlin narratives, time is not on Russia’s side," reads a new report from the Stockholm Institute of Transition Economics (SITE).
Russia faces record 2.6 million worker shortage amid war recruitment
The deepening labor shortage reflects growing strain on Russia's workforce as the Kremlin aggressively recruits men for its war against Ukraine.
North Korea sends nearly 15,000 migrants to Russia to cover labor market shortage, WSJ reports
The move represents an apparent violation of United Nations Security Council resolutions passed in the wake of North Korea's intercontinental ballistic missile (ICBM) tests.
Russian car market faces 50% drop in demand, CEO warns
Maxim Sokolov, the chief executive of Russia's largest state-owned car manufacturing company, said that AvtoVaz itself is expecting a 33% year-on-year drop in Lada car sales in April.
Russian ruble becomes top-performing currency amid Trump trade war, peace hopes
According to Bloomberg's calculations, the ruble has appreciated by 38% against the dollar in the over-the-counter market since the start of the year, outpacing gold's 23% rise.
Russia may face housing shortage as new construction drops sharply
In the first quarter of 2025, developers launched just 8.1 million square meters (around 87.19 million square feet) of new housing projects — down 24% from the same period last year.
US, Russia begin talks on rare earth minerals projects, Moscow claims
"Rare earth metals are an important area for cooperation, and, of course, we have begun discussions about various rare earth metals and projects in Russia," said Kirill Dmitriev, head of the Russian Direct Investment Fund.
Russian job market cools as hiring plunges 15% in early 2025, Russian media reports
Russian businesses have significantly scaled back their recruitment efforts in early 2025, with job openings falling 15% compared to the same period last year, pro-state Russian outlet Izvestia reported on March 24, citing data from employment service hh.ru.
Raiffeisen Bank International's subsidiary remains invested in sanctioned Russian entities, report says
As of January, Raiffeisen Capital held around 31.7 billion rubles ($365 million) in sanctioned entities, such as the Sberbank bank or the state-owned energy giant Gazprom, the report said, citing financial documents.
Russia abandons modernization of power plants due to lack of money, equipment, media reports
The Russian government has allowed several companies to abandon the modernization of over a dozen power plants across the country, the Russian news agency Interfax reported.
Russia's military spending surpasses Europe's as Putin ramps up war budget, study finds
In 2024, Russia’s total defense expenditures surged by 42% in real terms, reaching 13.1 trillion rubles. When adjusted for purchasing power parity—which accounts for differences in what money can buy in different countries—this amounts to $462 billion.
Russia braces for economic crisis as it revives Covid-era committee
The commission resumed work in December 2024, focusing on nine key sectors and over 2,000 enterprises, Russian Deputy Prime Minister Alexander Novak said.
Thousands of North Koreans taking construction jobs in Russia, media reports
The move represents an apparent violation of U.N. resolutions prohibiting North Korea from sending its citizens to work overseas, which the Security Council passed after Pyongyang's intercontinental ballistic missile tests.
Putin acknowledges inflation as key challenge for Russia
Speaking at a televised meeting with Prime Minister Mikhail Mishustin on Feb. 7, Putin noted that consumer prices in Russia rose by 9.5% in 2024 and have climbed further to 9.9% year-on-year this month.
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