Tag

Russia Economy

All articles tagged with #russia economy

geopolitics2 months ago•2 min saved

Klepach Dismissed as Kremlin Silences Warning of Wartime Social Crisis

Andrei Klepach, chief economist at Russia’s state development bank VEB.RF, was dismissed on Sunday after a May speech warning that Moscow cannot win a prolonged war of attrition against Ukraine. Klepach predicted a looming social crisis due to mounting costs, contradicting official claims of economic resilience. The dismissal, reportedly ordered by the Kremlin, highlights the regime’s intolerance for dissent within its economic elite.

via CNBC|

#andrei-klepach #geopolitics #kremlin-policy

world2 months ago•3 min saved

Drone Attacks Drain Wildberries’ Warehouse Network, Weighing on Russian Regions

Ukrainian drone strikes have damaged or destroyed up to a third of Wildberries’ Russian warehouses, wiping out about 480 billion rubles ($5.7 billion) in goods and affecting tens of thousands of sellers, with potential regional budget implications and a shift toward rivals like Ozon.

via Kyiv Post|

#drone-attacks #logistics #russia-economy

business2 months ago•6 min saved

Ukraine Drone Campaign Tests Wildberries’ Logistics Backbone

Ukrainian drone strikes have knocked out 14 Wildberries warehouses (about 1.5 million square meters, roughly 27% of capacity), threatening Russia’s biggest online retailer’s logistics and potentially costing about 105 billion rubles to rebuild. Indirect costs include rerouting deliveries, higher storage costs, and potential rent/insurance hikes, while sellers face estimated losses of 214.9–279.6 billion rubles. The government is weighing compensation up to around 250 billion rubles. Analysts say the damage is unlikely to cripple the wider economy despite hurting sellers and Wildberries’ growth, though the company could lose market share in a competitive e-commerce market; Wildberries is projected to hold about 45% of Russia’s online marketplace turnover in 2026.

via The Moscow Times|

#business #drones #logistics

world2 months ago•3 min saved

Ukraine targets Wildberries warehouses to disrupt drone supply chain

Ukraine has intensified strikes on Wildberries warehouses in Russia, saying the platform is a key supplier of drone components and other military gear for Moscow; the latest attack—the third in two weeks—injured two people as Wildberries remains economically vital to Russia, prompting talk of state backing to help the business.

via Euronews.com|

#drone-components #russia-economy #sanctions

world3 months ago•1 min saved

Putin vows Russia’s energy resilience as gas lines tighten amid Ukraine strikes

Putin says Ukraine strikes aim to destabilize Russia but won’t succeed, insisting Russia’s energy system is highly robust; he blames temporary disruptions for fuel shortages and long gas-station lines and urges faster domestic fuel production and supply to independent stations.

via Meduza|

#energy-security #gas-shortages #putin

economy3 months ago•43 min saved

CSIS Warns Putin's Wartime Economy Edges Toward an Abyss

A CSIS briefing argues that Russia’s wartime economy, built on massive state spending to sustain the military, remains afloat but is increasingly strained as sanctions bite, oil revenues fall, and battlefield losses grow; Moscow’s “military Keynesianism” has propped up growth and social payments, but fiscal reserves are dwindling, prompting calls for broader Western sanctions to push Putin toward ending the war and avoiding an economic, political, and military abyss.

via Fortune|

#csis #economy #putin

business4 months ago•5 min saved

Drones Trail Shadow Over SPIEF Opening

St. Petersburg's SPIEF opened amid black smoke from Ukrainian drone strikes on targets near the venue, drawing about 20,000 attendees from 130 countries. The forum emphasizes pragmatic dialogue and the Global South, with Putin set to speak and Saudi Arabia as guest of honor, while Western participation remains largely absent. Reports of a U.S. delegation circulated but were disputed. Ukraine claimed strikes on a Baltic Fleet warship and an oil terminal; Russia said it intercepted hundreds of drones. Attendees described a tense mood as organizers downplay the damage and stress optimism for the forum.

via The Moscow Times|

#business #drone-strikes #russia-economy

world5 months ago•5 min saved

Drones and Dissent: The War That Could Undo Putin

Rajan Menon argues that Putin’s four-year war in Ukraine is floundering: Ukrainian drones are eroding Russian advances, Russia’s economy is slowing, and domestic anxiety is rising as security crackdowns tighten control, suggesting the conflict could undermine the Kremlin rather than secure its triumph.

via The Guardian|

#drone-warfare #military-strategy #putin

world5 months ago•7 min saved

EU sanctions bite, but Russia's war economy keeps the show running

After 20 rounds of sanctions, Russia shows economic strain (0.3% Q1 contraction, about $60B deficit, near 6% inflation, and a 14.5% policy rate) but avoids collapse thanks to a high-cost war economy—boosting military spending and relying on domestic funding. Moscow also leans on yuan and sanctions circumvention to prop up finances. The EU pushes for a coordinated ban on maritime services for Russian oil tankers, yet Hormuz disruptions and shadow trading have partly cushioned revenue. IMF projects 1.1% growth in 2026, signaling a two-speed economy where defense-linked sectors thrive even as others lag.

via Euronews.com|

#energy-oil #eu-politics #russia-economy

economy5 months ago•8 min saved

War Costs Dim Russia’s Growth as Deficit Widens and Rate Cuts Stall

Five years into Russia’s war, the economy shows growing vulnerabilities: the budget deficit widened in early 2026 despite higher oil revenues, the central bank has limited room to cut rates as inflation hovers around 5–6%, and the ruble remains strong with export pain. Unemployment sits at a record low but masking a shrinking labor pool and aging population, while the National Wealth Fund’s assets have fallen. Forecasts put 2026 GDP growth around 0.5–1.5%, fueling debate over whether continued war spending can yield sustainable growth or will demand more state intervention.

via Meduza|

#budget-deficit #central-bank-policy #economy

economy5 months ago•10 min saved

Russia’s labor drought deepens as central bank chief flags 2.5 million missing workers

Russia faces an unprecedented labor shortage after FinExpertiza data show the labor reserve shrinking by about 2.5 million since the 2022 invasion, a figure Bank of Russia chair Elvira Nabiullina publicly confirmed. The shrinking pool is driving wage pressures while industry cuts and lower production persist, as emigration and demographic decline deepen the squeeze. In response, the state is leaning on automation, retraining, and the gig/self‑employment push, but analysts warn that without sustained productivity growth of around 3–4% annually the gap will widen.

via Euromaidan Press|

#bank-of-russia #economy #emigration

economy6 months ago•6 min saved

Sweden Warns Russia’s Economy Is Weaker Than It Appears, Heads Toward Decline

Sweden’s military intelligence chief warns Moscow’s economy is weaker than official data and could head into long-term decline or a shock; sustaining a war-driven economy would require Urals crude above $100 per barrel for a year, while the defense sector shows strain and corruption and inflation may run around 15% rather than the official ~6%; Sweden urges tougher sanctions to exploit Russia’s vulnerabilities.

via Kyiv Post|

#economy #oil-prices #russia-economy

business6 months ago•5 min saved

Putin Demands Answers as Russia's Growth Falls Short of Forecasts

President Putin pressed the government and the Central Bank for explanations after Russia’s economy undershot expectations this year, with January–February GDP down 1.8% year-on-year. Calendar-adjusted figures show January flat and February up 0.3%, but construction and broader industrial activity remained weak. Oil and gas revenues plunged, widening the budget deficit to 4.58 trillion rubles, signaling limited upside as economists warn of only modest growth around 1% this year amid high interest rates and war distortions.

via The Moscow Times|

#budget-deficit #business #central-bank

world8 months ago•12 min saved

Putin’s Inflation Gambit Threatens Russia’s War-Economy

The Ukraine war has pushed Russia toward an inflation-targeted, high-spending war economy. President Putin and policy elites insist on keeping a 4% inflation target, backed by the central bank, even as sanctions, oil-price caps, and heavy defense spending strain growth. Critics warn that record-high interest rates are hurting the defense-industrial complex and that Rostec’s plants could become unsustainable, risking long-term weapon supply and potential GDP stagnation or hyperinflation. While the approach may prevent immediate instability, it could erode Russia’s ability to sustain military production and economic health over time.

via 19FortyFive|

#defense-industry #inflation #putin

world8 months ago•7 min saved

Sanctions squeeze Russia's oil revenue, tightening the budget amid a slowing war economy

Western sanctions and EU bans on Russian oil refined products have cut Russia's January oil and gas tax revenue to 393 billion rubles—the lowest since COVID—pushing Moscow to borrow from banks and raise taxes as growth stalls. A price cap, a growing shadow fleet of sanctioned tankers, and reduced demand from buyers like India keep revenues volatile, while Urals sell at a deep discount to Brent. Moscow relies on reserves and higher taxes (VAT up to 22%) to prop up the budget, but inflation risk grows as growth slows (Q3 GDP 0.1%, forecasts 0.6–0.9% this year).

via AP News|

#budget #oil-revenue #price-cap