Russian Economy Spirals as Sanctions and Oil Prices Take Their Toll

Because of economic sanctions and declining oil prices, the Russian economy has started shifting slowly from stagnation into a recession.

Since 2025, the economic climate in Russia has notably worsened. Growth in Gross Domestic Product (GDP) is slowing down, prices are increasing, and the government’s fiscal shortfall is expanding. Following a period of little change during the initial trio of years amidst the conflict, the Russian economy now indicates an onset of recession. Production and commerce activities, which had been static, are progressively slipping towards contraction.

Definitively negative tendencies are now acknowledged not just by global specialists but also validated by assessments from Russian economic analysts.

As stated in a report from the first quarter of 2025 by the Russian Centre for Macroeconomic Analysis: ”
The sector is currently stagnant. Following a rise towards the close of 2024, industrial output drastically dropped back down to early-mid 2023 figures in January before leveling off. If we exclude industries within the military-defense sphere from our analysis, this situation points toward a shift into a recessionary phase.
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(MH with FM – Source: The Moscow Times – Image: © Unsplash)