Putin says Russian recession must not happen ‘under any circumstances’

President Vladimir Putin tells attendees astatine St Petersburg International Economic Forum that Moscow needs ‘balanced growth’.

Russia’s system indispensable not descent into recession, President Vladimir Putin said, aft economists warned for months of a slowdown successful growth.

Putin told attendees, including authorities ministers and cardinal bankers, astatine the St Petersburg International Economic Forum connected Friday that immoderate specialists and experts were “pointing to the risks of stagnation and adjacent a recession”.

“This indispensable not beryllium allowed to hap nether immoderate circumstances,” helium said.

“We request to prosecute a competent, well-thought-out budgetary, taxation and monetary policy,” helium added.

Economy Minister Maxim Reshetnikov said connected Thursday that the system was connected the verge of slipping into a recession, and monetary argumentation decisions would find whether it falls into 1 oregon not.

In October, the Bank of Russia accrued its cardinal involvement complaint to the highest level since the aboriginal 2000s to curb precocious inflation, lone to chopped it by 1 percent constituent to 20 percent earlier this month.

Moreover, economists warned for months of a slowdown successful the economy, with the state posting its slowest quarterly enlargement successful 2 years during the archetypal 4th of 2025.

However, the Kremlin said it expected the slowdown owed to 2 years of accelerated enlargement arsenic it accrued subject expenditure to money its warfare against Ukraine.

Yet, Putin denied that the defence manufacture was solely driving the economy. “Yes, of course, the defence manufacture played its portion successful this regard, but truthful did the fiscal and IT industries,” helium said.

He added that the system needed “balanced growth”, calling connected officials to support a “close oculus connected each indicators of the wellness of our industries, companies and adjacent idiosyncratic enterprises”.

At the aforesaid time, Deputy Prime Minister Alexander Novak said connected Friday that it was clip to “cut the [interest] complaint and commencement heating up the economy”.

German Gref, CEO of Russia’s largest lender Sberbank SBER.MM besides called for faster complaint cuts to incentivise companies to invest.

Growth of subject industries

Putin has utilized the yearly economical forum to item Russia’s economical prowess and promote overseas investment, but Western executives shunned it since Moscow sent troops into Ukraine successful 2022, leaving it to concern leaders from Asia, Africa and Latin America.

The economy, deed with a slew of Western sanctions, has truthful acold outperformed predictions. High defence spending has propelled maturation and kept unemployment debased contempt fuelling inflation.

Large recruiting bonuses for subject enlistees and decease benefits for those killed successful Ukraine person besides enactment much income into the country’s poorer regions. But implicit the agelong term, ostentation and a deficiency of overseas investments airs threats to the economy.

Economists person warned of mounting unit connected the system and the likelihood that it would stagnate owed to a deficiency of concern successful sectors different than the military.

Putin said the maturation of subject industries helped make caller technologies that person go disposable to the civilian sector.

He pledged to proceed subject modernisation, relying connected lessons learned during the warring successful Ukraine.

“We volition harness caller exertion to amended the combat capabilities of the Russian equipped forces, modernise subject infrastructure facilities, [and] equip them with the latest exertion and weapons and equipment,” helium said.

“At the aforesaid time, we mean to make military-technical co-operation with affable countries. And we are talking not lone astir supplies oregon the modernisation of instrumentality and weapons, but besides astir associated development, unit training, and the instauration of turn-key enterprises and accumulation facilities,” helium added.