The Bank of Russia reduced the standard prices again on Friday and refused that the economy is in a stagnation, even after its gross domestic product has shown this year.
The latter reduction rates decreased by 1 percent to 17 % and were characterized by the third reduction since June, when high borrowing costs in the sky helped inflation, but also struggled in wartime.
While Russia was still flexible amid Western sanctions imposed after President Vladimir Putin fired its invasion of Ukraine in 2022, data from the central bank revealed last week more damage than previously thought.
The graph in the report of the gross domestic product was shown on a successive basis in the first and second quarters, and to meet the definition of the so -called artistic stagnation.
However, the governor of the central bank Elvira Nebulinina denied that Russia is in a recession, pointing to other data points that offer more strength, such as employment, real income, demand for consumer and industrial production.
“We are already cooling for the economy. This is normal when out of the high temperature, when the productive capacity should refer to the demand,” she said at a press conference. According to Reuters.
The Kremlin flows money in its war on Ukraine, where hot factories are going to keep more weapons while huge financial incentives are offered to bring new recruits to the army. This led to a shortage of employment and inflation.
As a result, the central bank’s rise rates increased by 21 % last year. Since then, more cracks have appeared in the economy. Russian banks raised red flags on Possible debt crisis Since high interest rates weigh the borrowers’ ability to serve loans.
In June, Economy Minister Maxim Richnikov warned this Russia was “on the edge” of the recession. Last month, Oxford’s economy also said Russia swings on the edge of the recession.
Last week, SberBank German CEO Gref, one of the best bankers in Russia, said, ” The economy was in “technical recession”, “ After his warnings in July and August that growth was close to scratch.
Moreover, Russia faces a catastrophic harvest despite being agricultural power, which makes more pressure on the economy and Kremlin financing.
The oil and gas revenues, which is the main source of money in Russia, have also collapsed this year on the low prices of crude and more strict Western sanctions. To fill the budget deficit, Moscow was draining its reserve money, which might be exhausted later this year.
On Saturday, President Donald Trump called on NATO countries to Stop buying Russian oil To strike China, the highest agent of Russia’s crude, with a secondary tariff of up to 100 %.
He said that this would help put an end to the Ukraine war on social media. This is after his meeting with Putin in Alaska last month, which did not lead to any progress in the ceasefire talks.
Instead, Russia raised tensions with NATO by sending drones to Poland last week, prompting combat aircraft from the coalition to topple them.
“China has strong control, and even a grip, on Russia,” Trump’s deployment, and strong definitions “will break that grip.”
https://fortune.com/img-assets/wp-content/uploads/2025/09/GettyImages-2233009375-e1757776916593.jpg?resize=1200,600
Source link