Russian President Vladimir Putin expressed deep concern over the nation’s economic performance, highlighting a 1.8% GDP contraction in the first two months of the year and negative trends in manufacturing, industrial production, and construction. He demanded immediate solutions from his economic advisors, including the Prime Minister and the Central Bank Governor, emphasizing that the current economic trajectory falls below expectations. This economic slowdown, exacerbated by the ongoing war in Ukraine and Western sanctions, marks a significant challenge, with warnings of a potential financial crisis and banking sector instability due to high interest rates, inflation, and a persistent labor shortage.
Read More
Ukraine has just brought home 182 prisoners of war, a significant number of whom are the incredibly brave defenders of Mariupol. This news marks a moment of profound relief and joy, a glimmer of hope amidst the ongoing conflict. The sheer scale of this exchange, and the inclusion of those who endured the brutal siege of Mariupol, underscores the years of immense hardship and suffering these individuals have faced.
It’s impossible to fully grasp what these defenders have endured during their captivity, especially after holding out for so long in a city under relentless attack. Their resilience in Mariupol was a testament to their unwavering spirit, and seeing them returned to safety, after such an extended period, is truly remarkable.… Continue reading
Russian leader Vladimir Putin acknowledged a significant economic slowdown in 2025, with growth reaching only 1%, falling short of projections. This marks a departure from the war-driven expansion seen in preceding years. While Putin attributed the slowdown to deliberate anti-inflationary measures, the reduction in growth coincides with the prolonged war in Ukraine, which has strained the economy and led to decreased revenues. The Russian economy now faces stagflation, a challenging environment where inflationary and recessionary pressures coexist.
Read More
The Kremlin has announced that Russian President Vladimir Putin has ordered a “significant increase” in tax collection and compliance, prompted by the slowdown in Russia’s wartime economy. This directive includes a rise in consumption taxes from 20% to 22% and the planned introduction of a new tax on electronics. The government aims to stimulate economic growth and investment while simultaneously managing inflation, targeting a rate between 4% and 5% by the end of 2026. These measures come amid concerns over declining oil prices and potential impacts from the US’s approach to Venezuelan oil, which could further weaken Russia’s economic standing.
Read More
Russia weighs how to prop up Russian Railways, which is $51 billion in debt, sources say.
The sheer scale of the debt is staggering, isn’t it? Russian Railways, a key player in the country’s economy and its biggest commercial employer, is reportedly drowning in about 4 trillion roubles, which translates to a whopping $50.8 billion. That’s a huge sum for a railway network, and it’s forcing the powers that be to scramble for solutions. It makes you wonder how such a seemingly essential service accumulates such a burden. You’d think the efficient transport of goods would be a reliable revenue stream, but clearly, the reality is far more complex.… Continue reading
Russia’s oil and gas revenue is anticipated to decrease by approximately 35% in November compared to the previous year, reaching roughly $6.6 billion, due to weaker crude prices and a stronger ruble. This decline, also reflected in a 7.4% decrease from October, places pressure on Russia’s budget, especially with elevated defense spending. For the first 11 months of 2025, oil and gas revenue is projected to total approximately $102 billion. Western sanctions, designed to limit Moscow’s war funding, have compounded the issue.
Read More
President Putin has downplayed concerns about Russia’s slowing economic growth, attributing it to a deliberate effort to curb inflation and maintain macroeconomic stability, despite expectations of a slowdown from 4.3% to around 1% GDP growth. This stance echoes similar comments from the Central Bank Governor, who denies the existence of a recession, although data suggests a technical recession based on quarterly GDP declines. However, this contradicts prior statements from Russia’s Economic Minister as well as reports suggesting the government is considering increasing the value-added tax to manage its budget deficit and preserve reserves, potentially conflicting with Putin’s previous tax assurances.
Read More
Ukrainian drones strike one of Russia’s biggest refineries, and it seems the hits just keep on coming. Reports indicate that Ukraine recently targeted the Kirishi refinery in Russia’s Leningrad Oblast. This isn’t just any old facility; it’s one of Russia’s major oil refineries, accounting for a significant chunk – roughly 6.4% – of their refining capacity. The strategic importance of such strikes is undeniable, as they directly impact Russia’s ability to produce and supply petroleum products.
Following the attacks, initial reports from Russia claimed that three drones were successfully neutralized, with debris from one causing a fire. Fortunately, there were no reported injuries, and the fire was quickly extinguished.… Continue reading
Russia’s Putin denies economy is stagnating, as evidence suggests otherwise, and this is a narrative that feels increasingly familiar. It’s like a broken record, where the leader insists everything is fine while the facts on the ground tell a different story. The similarities between this and certain situations in the US are striking. It seems the denial of economic realities has become a common tactic in some leadership circles.
The current economic situation is, frankly, concerning. Reports indicate that Russia is planning to significantly increase its borrowing, likely to offset the massive government spending. This spending is, at least in part, propping up the economy, so without it, things could get much worse, and rapidly.… Continue reading
Russia’s economic growth has sharply decelerated, entering a phase of “technical stagnation” from April-June 2025, according to Sberbank’s head, German Gref. This slowdown, driven by record defense spending, is hampered by weak private consumption and shrinking civilian investment, with the Central Bank expecting near-zero growth in late 2025. Economy Minister Maxim Reshetnikov noted a concerning trend of underutilized factories and cost optimization, along with a July GDP growth of 0.4%, indicating insufficient demand. High inflation and the Central Bank’s key interest rate are contributing to a challenging economic situation, reflecting the limits of Russia’s war-fueled expansion.
Read More
John Q. Hosedrinker 
Matt Underwood