Latest news with #Reshetnikov
Al Jazeera
5 hours ago
- Business
- Al Jazeera
Putin says Russian recession must not happen ‘under any circumstances'
Russia's economy must not slide into recession, President Vladimir Putin said, after economists warned for months of a slowdown in growth. Putin told attendees, including government ministers and central bankers, at the St Petersburg International Economic Forum on Friday that some specialists and experts were 'pointing to the risks of stagnation and even a recession'. 'This must not be allowed to happen under any circumstances,' he said. 'We need to pursue a competent, well-thought-out budgetary, tax and monetary policy,' he added. Economy Minister Maxim Reshetnikov said on Thursday that the economy was on the verge of slipping into a recession, and monetary policy decisions would determine whether it falls into one or not. In October, the Bank of Russia increased its key interest rate to the highest level since the early 2000s to curb high inflation, only to cut it by one percentage point to 20 percent earlier this month. Moreover, economists warned for months of a slowdown in the economy, with the country posting its slowest quarterly expansion in two years during the first quarter of 2025. However, the Kremlin said it expected the slowdown due to two years of rapid expansion as it increased military expenditure to fund its war against Ukraine. Yet, Putin denied that the defence industry was solely driving the economy. 'Yes, of course, the defence industry played its part in this regard, but so did the financial and IT industries,' he said. He added that the economy needed 'balanced growth', calling on officials to keep a 'close eye on all indicators of the health of our industries, companies and even individual enterprises'. Sign up for Al Jazeera Breaking News Alert Get real-time breaking news alerts and stay up-to-date with the most important headlines from around the globe. Subscribe Your subscription failed. Please try again. Please check your email to confirm your subscription By signing up, you agree to our Privacy Policy protected by reCAPTCHA Advertisement At the same time, Deputy Prime Minister Alexander Novak said on Friday that it was time to 'cut the [interest] rate and start heating up the economy'. German Gref, CEO of Russia's largest lender Sberbank also called for faster rate cuts to incentivise companies to invest. Growth of military industries Putin has used the annual economic forum to highlight Russia's economic prowess and encourage foreign investment, but Western executives shunned it since Moscow sent troops into Ukraine in 2022, leaving it to business leaders from Asia, Africa and Latin America. The economy, hit with a slew of Western sanctions, has so far outperformed predictions. High defence spending has propelled growth and kept unemployment low despite fuelling inflation. Large recruiting bonuses for military enlistees and death benefits for those killed in Ukraine have also put more income into the country's poorer regions. But over the long term, inflation and a lack of foreign investments pose threats to the economy. Economists have warned of mounting pressure on the economy and the likelihood that it would stagnate due to a lack of investment in sectors other than the military. Putin said the growth of military industries helped develop new technologies that have become available to the civilian sector. He pledged to continue military modernisation, relying on lessons learned during the fighting in Ukraine. 'We will harness new technology to improve the combat capabilities of the Russian armed forces, modernise military infrastructure facilities, [and] equip them with the latest technology and weapons and equipment,' he said. 'At the same time, we intend to develop military-technical co-operation with friendly countries. And we are talking not only about supplies or the modernisation of equipment and weapons, but also about joint development, personnel training, and the creation of turn-key enterprises and production facilities,' he added.
Washington Post
8 hours ago
- Business
- Washington Post
Putin boasts about Russia's economy despite recession fears
ST. PETERSBURG, Russia — President Vladimir Putin on Friday hailed Russia's economic outlook, saying it has managed to curb inflation and ease its reliance on energy exports. His optimistic account in a speech at the St. Petersburg International Economic Forum contrasted with somber statements by some members of his government who warned at the same conference that Russia could face a recession. Economic Minister Maxim Reshetnikov had said Thursday that the country is 'on the brink of going into a recession.'
Miami Herald
9 hours ago
- Business
- Miami Herald
Russia ‘On the Brink Of' Recession Says Economy Minister
Russia's economy, buoyed for months by wartime spending, may now be teetering toward recession, Minister of Economic Development of the Russian Federation Maxim Reshetnikov said on Thursday, according to Russian media reports. Speaking at the annual St. Petersburg International Economic Forum, Reshetnikov said: "The numbers indicate cooling, but all our numbers are [like] a rearview mirror." "Judging by the way businesses currently feel and the indicators, we are already, it seems to me, on the brink of going into a recession, he added, according to business news outlet RBC. The warning marks a significant shift as Russia faces the consequences of prolonged war-related spending, global sanctions and continued international isolation. For American policymakers and businesses, economic instability in Russia carries potential implications for global markets, energy prices, and ongoing geopolitical tensions, especially as sanctions and Russia's military operations in Ukraine continue to reshape the international economic landscape. Since sanctions were imposed following the invasion of Ukraine in February 2022, Russia's economy had outperformed early predictions. High levels of defense spending supported growth and kept unemployment rates low even as inflation worsened. Wages rose with inflation, benefiting many workers in the short term. Large signing bonuses for military recruits and death benefits for soldiers killed in Ukraine put additional money into poorer regions of Russia. However, economists have warned that the prolonged focus on military sectors, inflation, and a lack of foreign investment are increasing long-term risks and stagnation in other economic sectors. At Thursday's event in Russia's second-largest city, intended to showcase the country's economic achievements and court foreign investors, Reshetnikov addressed Central Bank Governor Elvira Nabiullina, saying he wanted to give "the economy some love," according to Reuters. Nabiullina downplayed fears, claiming Russia's economy was "coming out of overheating," according to RBC. Finance Minister Anton Siluanov also offered a more optimistic view, stating the economy was "cooling" but adding, "after any cooling, the summer always comes." Russian Economy Minister Maxim Reshetnikov said, according to Reuters: "I didn't predict a recession. I said we're on the brink. From here on out, everything will depend on our decisions." Russia's Center for Macroeconomic Analysis and Short-Term Forecasting said in a statement this week: "It seems that an 'an economy of stagnation' has formed." The trajectory of Russia's economy will depend on forthcoming government and central bank actions as officials weigh responses to the cooling economic environment. Further policy announcements or economic data are expected to clarify whether Russia can avoid a formal recession designation in the coming months. This article includes reporting by The Associated Press Related Articles U.S. Pushing Allies to Limit Focus on Ukraine in NATO Summit CommuniqueUkraine Changes Law on Dual CitizenshipUkraine HIMARS Destroys Russian Convoy Near Gas Station: ReportAmerican Killed in Deadly Russian Strike on Kyiv 2025 NEWSWEEK DIGITAL LLC.
NDTV
13 hours ago
- Business
- NDTV
Russia Is On 'Brink Of Going Into Recession', Warns Economy Minister
St Petersburg: Russia's economy is "on the brink of going into a recession," the country's economy minister said Thursday, according to Russian media reports. Economy Minister Maxim Reshetnikov delivered the warning at the St. Petersburg International Economic Forum, the annual event in Russia's second largest city designed to highlight the country's economic prowess and court foreign investors. Russian business news outlet RBC quoted the official as saying "the numbers indicate cooling, but all our numbers are (like) a rearview mirror. Judging by the way businesses currently feel and the indicators, we are already, it seems to me, on the brink of going into a recession." The economy, hit with a slew of sanctions after the Kremlin sent troops into Ukraine in February 2022, has so far outperformed predictions. High defense spending has propelled growth and kept unemployment low despite fueling inflation. At the same time, wages have gone up to keep pace with inflation, leaving many workers better off. Large recruiting bonuses for military enlistees and death benefits for those killed in Ukraine also have put more income into the country's poorer regions. But over the long term, inflation and a lack of foreign investments remain threats to the economy, leaving a question mark over how long the militarized economy can keep going. Economists have warned of mounting pressure on the economy and the likelihood it would stagnate due to lack of investment in sectors other than the military. Speaking at a forum session, Reshetnikov said Russia was "on the brink," and whether the country would slide into a recession or not depends on the government's actions. "Going forward, it all depends on our decisions," Reshetnikov said, according to RBC. RBC reported Russia's Finance Minister Anton Siluanov and Central Bank Gov. Elvira Nabiullina gave more optimistic assessments. Siluanov spoke about the economy "cooling" but noted that after any cooling "the summer always comes," RBC reported. Nabiullina said Russia's economy was merely "coming out of overheating," according to RBC.
Newsweek
13 hours ago
- Business
- Newsweek
Russia 'On the Brink Of' Recession Says Economy Minister
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Russia's economy, buoyed for months by wartime spending, may now be teetering toward recession, Minister of Economic Development of the Russian Federation Maxim Reshetnikov said on Thursday, according to Russian media reports. Speaking at the annual St. Petersburg International Economic Forum, Reshetnikov said: "The numbers indicate cooling, but all our numbers are [like] a rearview mirror." "Judging by the way businesses currently feel and the indicators, we are already, it seems to me, on the brink of going into a recession, he added, according to business news outlet RBC. Minister of Economic Development of the Russian Federation Maxim Reshetnikov attends a plenary session of the St. Petersburg International Economic Forum in St. Petersburg, Russia, on June 19, 2025. Minister of Economic Development of the Russian Federation Maxim Reshetnikov attends a plenary session of the St. Petersburg International Economic Forum in St. Petersburg, Russia, on June 19, 2025. Roscongress Foundation via AP Why It Matters The warning marks a significant shift as Russia faces the consequences of prolonged war-related spending, global sanctions and continued international isolation. For American policymakers and businesses, economic instability in Russia carries potential implications for global markets, energy prices, and ongoing geopolitical tensions, especially as sanctions and Russia's military operations in Ukraine continue to reshape the international economic landscape. What To Know Since sanctions were imposed following the invasion of Ukraine in February 2022, Russia's economy had outperformed early predictions. High levels of defense spending supported growth and kept unemployment rates low even as inflation worsened. Wages rose with inflation, benefiting many workers in the short term. Large signing bonuses for military recruits and death benefits for soldiers killed in Ukraine put additional money into poorer regions of Russia. However, economists have warned that the prolonged focus on military sectors, inflation, and a lack of foreign investment are increasing long-term risks and stagnation in other economic sectors. At Thursday's event in Russia's second-largest city, intended to showcase the country's economic achievements and court foreign investors, Reshetnikov addressed Central Bank Governor Elvira Nabiullina, saying he wanted to give "the economy some love," according to Reuters. Nabiullina downplayed fears, claiming Russia's economy was "coming out of overheating," according to RBC. Finance Minister Anton Siluanov also offered a more optimistic view, stating the economy was "cooling" but adding, "after any cooling, the summer always comes." What People Are Saying Russian Economy Minister Maxim Reshetnikov said, according to Reuters: "I didn't predict a recession. I said we're on the brink. From here on out, everything will depend on our decisions." Russia's Center for Macroeconomic Analysis and Short-Term Forecasting said in a statement this week: "It seems that an 'an economy of stagnation' has formed." What Happens Next The trajectory of Russia's economy will depend on forthcoming government and central bank actions as officials weigh responses to the cooling economic environment. Further policy announcements or economic data are expected to clarify whether Russia can avoid a formal recession designation in the coming months. This article includes reporting by The Associated Press
