Russia’s Economy on the brink of going into recession: Economic Minister

Russia’s Economy is on the brink of going into recession. This had been stated by the economic minister of Russia on Thursday. Russia’s Economic Minister, Maxim Reshetnikov, announced the warning at the St.Petersburg International Economic Forum, the annual event in Russia’s second largest city, designed to highlight the country’s economic prowess and court foreign investors.

Both Russia’s business news outlet RBC quoted the minister saying “the numbers indicate cooling, but all our numbers are (like) a rearview mirror. Judging by the way businesses currently feel and the indicators, we are already, it seems to me, on the brink of going into a recession.”

His comments, first reported by Russian business news outlet RBC, come amid rising concerns about slowing domestic growth, persistent inflation, and the long-term impact of international sanctions imposed after the Ukraine conflict. Despite these efforts to bolster trade with Asia and pivot away from the Western market, the Russian economy is showing signs of fatigue. Reshetnikov acknowledged the growing gap between official figures and on-the-ground sentiment from businesses, indicating a broader economic unrest in Russia’s corporate sector.

The St.Petersburg forum was once a magnet for Western investors and multinational CEOs, but now largely draws participants from countries with closer ties to Moscow. In thusyear these events have featured a stronger focus on “economic sovereignty” and resilience in the face of geopolitical isolation. But the economic minister, Reshetnikov’s remarks has cut through the optimism.

“We must take a realistic view,” the minister added. “The dynamics we’re seeing now — both in industry and in consumer activity — suggest that the economy is cooling more sharply than expected.”

The Central Bank of Russia had revised its growth forecasts while the inflation remained stubbornly high. Independent analysts suggested that the situation may worsen if current trends continue through the second half of 2025. Economists outside Russia are watching this fallout and noticing how the Kremlin will respond. With limited access to Western capital and technology and ongoing costs from military spending, the government faces shrinking fiscal resources for stimulus.

As the SPIEF continues, the economic Minister of Russia, Reshetnikov’s warning, cast a shadow over the forum’s traditionally upbeat tone, turning attention away from glossy investment pitches to a looming economic slowdown. Keep Reading Questeuro.com for more news.

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