Latest news with #recession
Irish Times
3 hours ago
- Business
- Irish Times
Russian minister says country's economy is ‘on the verge' of recession
Vladimir Putin 's economy minister has warned that Russia is 'on the verge' of recession as he spoke on the second day of a signature event meant to bolster economic confidence. The minister, Maxim Reshetnikov, said at the St Petersburg economic forum that his view was based on 'current business sentiment and indicators' pointing to a slowdown. 'Everything else depends on our decisions,' Reshetnikov said, calling for the central bank to show a 'little love for the economy'. Russia's central bank raised interest rates to an eye-watering 21 per cent in October 2024 to combat inflation and kept them at that level until this month when it eased them to 20 per cent. Russia's economic growth slowed to 1.4 per cent year-on-year in the first quarter of 2025, the lowest quarterly figure in two years. Prices are rising across the economy driven up by massive government spending on the war and widespread labour shortages. Annual inflation has been more than double the central bank's 4 per cent target for more than a year. READ MORE Economists have warned since the war began that any Russian growth driven by the defence industry is unsustainable and does not reflect a real increase in productivity. In Ukraine , Kharkiv and Odesa were under attack from Russian-launched drones in the early hours of Friday, according to local officials and social media channels. Ukraine's Zaporizhzhia nuclear power plant 'cannot start operating again as long as this large-scale war continues', the UN nuclear agency has said. The plant, illegally held by the Russians, has too many issues with cooling water and its need for electricity supplied from off-site, the IAEA said. Russia and Ukraine said on Thursday that they had completed another exchange of captured soldiers. Neither side said how many. 'Our people are returning home from Russian captivity,' said Volodymyr Zelenskiy , the Ukrainian president. The Ukrainian government agency overseeing the exchanges said it involved 'seriously ill and wounded' soldiers. Russia's defence ministry also confirmed the exchange. Mr Zelenskiy said on Thursday that Russia's defence of Iran 's authorities underscored the need for intensified sanctions against Moscow. Its deployment of Iranian-designed Shahed drones and North Korean munitions was proof that Kyiv's allies were applying insufficient pressure against the Kremlin. 'When one of their accomplices loses their capability to export war, Russia is weakened and tries to interfere. This is so cynical and proves time and again that aggressive regimes cannot be allowed to unite and become partners.' The Ukrainian foreign minister, Andrii Sybiha, said the conflict between Israel and Iran had exposed Russian hypocrisy, with Moscow condemning strikes against Tehran while 'ruthlessly' attacking Ukraine. 'The only rational conclusion is that Russia cannot be trusted in any situation, and it is always part of the problem rather than the solution.' Fighting between Iran and Israel could deflect global attention from the Russian invasion of Ukraine and even bolster the Kremlin's war effort, a senior Ukrainian political source told AFP. The conflict has pushed up the price of oil and 'for Ukraine, the challenge is the price of oil, because if prices remain high for a long time, the Russians will earn more'. However, Kyiv has welcomed Israeli attacks on a country that has directly aided and provided weapons to Russia. Denmark , when it takes over the presidency of the European Council, will continue preparing Ukraine for EU membership against the objections of Hungary, the Danish Europe minister, Marie Bjerre, said on Thursday. The Danish presidency begins on July 1st. 'Unfortunately, Hungary is blocking and we are trying to put as much pressure there as we can and also do everything we can to make Ukraine continue with the necessary reform work,' said Bjerre. - Guardian
The Independent
3 hours ago
- Business
- The Independent
Ukraine-Russia war latest: Putin minister issues recession warning while Russia admits massive losses on frontline
Russian economy is 'on the verge of recession', the country's economy minister said yesterday as Moscow hosted the St Petersburg International Economic Forum for the fourth time since invading Ukraine in February 2022. His remarks come as Russian ambassador to the UK accidentally shared an estimate of Russia 's massive losses on the battlefield. Ambassador Andrey Kelin, talking to the CNN, dismissed the one million casualties figure but said that "about 600,000" Russian soldiers were fighting in Ukraine and said that Russia was enrolling 50,000-60,000 volunteers every month. Yesterday, Russian president Vladimir Putin claimed that he is willing to meet Ukrainian president Volodymyr Zelensky but only for a 'final phase' of talks. only join the talks to finally 'put an end' to the conflict. It is not the first time - nor will it be the last - that Putin has supposedly signalled a desire to end the war. Ukraine and its western backers say he is simply playing for time, appealing to Donald Trump while continuing to relentlessly bomb Ukraine in the meantime. Ukraine and Russia exchange more prisoners of war in latest swap Ukraine and Russia exchanged prisoners of war, officials from both countries said, the latest round of swaps under an agreement struck in Istanbul. President Volodymyr Zelensky posted images of the freed Ukrainian troops, smiling and draped in the national flag, most of whom had been held captive since the early months of Russia's February 2022 invasion, he said. The Ukrainian POWs exchanged yesterday were either sick or injured, according to Kyiv's coordinating council for POWs. The Russian POWs would also be sent for treatment and rehabilitation, Moscow's defence ministry said. Neither Ukraine nor Russia, whose talks on ending the war have yielded few results besides the exchange of prisoners or remains, provided an exact figure of how many POWs had been exchanged. Arpan Rai20 June 2025 06:45 Watch: Russia's defence of Iran shows need to tighten sanctions, says Zelensky Arpan Rai20 June 2025 06:40 North Korea will send 5,000 military construction workers to Russia, Kremlin says North Korea is sending 5,000 military construction workers and 1,000 sappers to Russia 's Kursk oblast, where Moscow is repairing widespread damage from a Ukrainian incursion, according to a top Kremlin official. Presidential security adviser Sergei Shoigu said the workers would help rebuild the strategic border region, which was invaded by the Ukrainian military last August and retaken by Russian forces earlier this year. The dispatch of the workers was discussed in Mr Shoigu's meeting with North Korean leader Kim Jong Un, state media outlet KCNA reported on Wednesday. North Korea will send 5,000 military construction workers to Russia, says Kremlin Sergei Shoigu says North Korean workers will help repair damage from Ukrainian incursion in Kursk Arpan Rai20 June 2025 06:17 Russia claims South Africa invited Putin to G20 summit South Africa formally invited Russian President Vladimir Putin to attend the G20 summit, a Russian diplomat has claimed. "Last week, we received an official invitation. This is an appeal from the head of state, the president of South Africa (Cyril Ramaphosa), to his colleagues," Russian Ambassador-at-large Marat Berdyev told state-owned media outlet RIA. The summit will take place in Johannesburg from November 22 to 23. However, South Africa is a member of the International Criminal Court (ICC), meaning it is obliged to arrest Mr Putin on arrival. An arrest warrant was issued for the Russian leader in March 2023 over allegations of illegal deportation of Ukrainian children during Russia's invasion of Ukraine. Arpan Rai20 June 2025 06:15 Spain rejects Nato defence spending increase Spain has rejected a Nato proposal to spend 5 per cent of GDP on defence needs set to be unveiled next week, claiming it is "unreasonable." In a letter sent yesterday to Nato secretary-general Mark Rutte, Spanish prime minister Pedro Sanchez said that Spain "cannot commit to a specific spending target in terms of GDP". His comments reveal divisions in the bloc ahead next week's Nato summit in The Hague. "For Spain, committing to a 5 per cent target would not only be unreasonable, but also counterproductive, as it would move Spain away from optimal spending and it would hinder the EU's ongoing efforts to strengthen its security and defence ecosystem," Mr Sanchez wrote in the letter seen by The Associated Press. Arpan Rai20 June 2025 06:05 Ukraine's nuclear plant cannot restart during war, says UN nuclear watchdog The Zaporizhzhia nuclear power plant in Ukraine cannot resume operations until challenges related to the availability of cooling water and off-site power are fully resolved, the International Atomic Energy Agency (IAEA) has said. "Based on the discussions at the site this week, it is clear that there is a general consensus among all parties that the Zaporizhzhia Nuclear Power Plant cannot start operating again as long as this large-scale war continues," the UN nuclear watchdog said in a statement. Zaporizhzhia nuclear plant, Europe's largest nuclear power plant (NPP) situated in Ukraine's east, has not been generating electricity for almost three years now, and its location on the frontline of the conflict continues to put nuclear safety in constant jeopardy, the IAEA said. 'Its off-site power situation also remains extremely fragile, with only one power line currently functioning compared with ten before the conflict. In addition, the destruction of the Kakhovka dam in mid-2023 means the ZNPP does not have sufficient water to cool six operating reactors,' the statement yesterday added. Arpan Rai20 June 2025 05:52 German general dismisses Putin's Taurus warnings as 'nonsense' A German general dismissed repeated warnings by Russian president Vladimir Putin that delivering Taurus cruise missiles to Ukraine might make it party to the war as 'nonsense'. "It is obviously nonsense and not correct that military aid - and this discussion has been going on for three years now - would constitute direct participation in the war," Major-General Christian Freuding, who is in charge of coordinating German military aid to Kyiv, told public broadcaster ZDF. 20 June 2025 05:36 Putin-Trump meeting 'not currently on the table', Kremlin says A meeting between Vladimir Putin and Donald Trump is not currently on the table, the Kremlin has said. "Until the necessary 'homework' is done to remove the irritants in our relations with the United States, it makes no sense to organize a meeting," Kremlin spokesperson Dmitry Peskov said. The US President has repeatedly raised the issue of meeting with Mr Putin, saying it would help accelerate efforts to end the war in Ukraine. However, the pair have not met since he began his second presidency in January. Arpan Rai20 June 2025 05:30 Zelensky to attend Nato summit in Hague - reports Volodymyr Zelenskyy is scheduled to attend the Nato summit in The Hague later this month, according to reports. A source in the Ukrainian presidency told AFP that Mr Zelensky would attend the summit, scheduled for June 24-25. 'The decision will be made on the eve of the summit. This is just the schedule,' the source said. They described the meeting as 'an opportunity to maintain support and promote a ceasefire'. Arpan Rai20 June 2025 05:08 Zelensky announces new commander of Ukraine's land forces Ukrainian presiden Volodymyr Zelensky has appointed Hennadiy Shapovalov as commander of Ukraine's land forces, replacing a commander who resigned over a Russian strike on a training area. Mr Shapovalov, whose appointment was announced in a presidential decree, had previously acted as a liaison at a Nato coordination centre in Germany. Before that, he has served as commander of the forces of the Operational Command South. Mr Zelensky, speaking later in his nightly video address, said the incoming military chief's experience in working with Nato would be put to good use in introducing changes in Ukraine's forces. "All this useful experience of this coordination and all the real combat experience of our soldiers must be applied now within Ukraine's land forces," he said. "Changes are needed and this is an imperative." Mr Shapovalov takes over as head of land forces from Mykhailo Drapatyi, who tendered his resignation this month after a deadly Russian strike on a training camp in southeastern Ukraine. Arpan Rai
News.com.au
6 hours ago
- Business
- News.com.au
Russian economy on verge of recession, minister warns
Russia's economy minister warned that the country was 'on the verge' of recession, issuing the downbeat message on the second day of a forum designed to bolster economic confidence. The Russian economy has been marked by volatility since it launched its full-scale military offensive on Ukraine in 2022, with growth now slowing after a period of what officials called 'overheating'. Moscow reported strong economic expansion in 2023 and 2024, largely due to massive state defence spending on the conflict. But economists have cautioned that growth driven by the defence industry is unsustainable and does not reflect a real increase in productivity. 'Overall, I think we are on the verge of a recession,' Economy Minister Maxim Reshetnikov told journalists at a panel on the second day of the Saint Petersburg Economic Forum. He said this view was based on 'current business sentiment and indicators' that were pointing to a slowdown. 'Everything else depends on our decisions,' Reshetnikov said, calling for the central bank to show a 'little love for the economy'. Russia's central bank jacked interest rates to an eye-watering high of 21 per cent last October to combat inflation and kept them at that level until earlier this month, when it eased them to 20 per cent. Economists had warned for months that the high interest rate and a downturn in manufacturing were weighing on the economy. Russia's economic growth slowed to 1.4 per cent year-on-year in the first quarter of 2025, the lowest quarterly figure in two years. Prices have also been rising across the Russian economy, driven up by the massive government spending on the Ukraine assault and widespread labour shortages. Annual inflation ebbed below 10 per cent in May but has been more than double the central bank's four per cent target for over a year.
The Guardian
8 hours ago
- Business
- The Guardian
Ukraine war briefing: Russia ‘on verge of recession', Putin minister tells economic showcase
Vladimir Putin's economy minister has warned that Russia is 'on the verge' of recession as he spoke on the second day of a signature event meant to bolster economic confidence. The minister, Maxim Reshetnikov, said at the St Petersburg economic forum that his view was based on 'current business sentiment and indicators' pointing to a slowdown. 'Everything else depends on our decisions,' Reshetnikov said, calling for the central bank to show a 'little love for the economy'. Russia's central bank raised interest rates to an eye-watering 21% in October 2024 to combat inflation and kept them at that level until this month when it eased them to 20%. Russia's economic growth slowed to 1.4% year-on-year in the first quarter of 2025, the lowest quarterly figure in two years. Prices are rising across the economy driven up by massive government spending on the war and widespread labour shortages. Annual inflation has been more than double the central bank's 4% target for over a year. Economists have warned since the war began that any Russian growth driven by the defence industry is unsustainable and does not reflect a real increase in productivity. Kharkiv and Odesa were under attack from Russian-launched drones in the early hours of Friday, according to local officials and social media channels. Ukraine's Zaporizhzhia nuclear power plant 'cannot start operating again as long as this large-scale war continues', the UN nuclear agency has said. The plant, illegally held by the Russians, has too many issues with cooling water and its need for electricity supplied from offsite, the IAEA said. Russia and Ukraine said on Thursday that they had completed another exchange of captured soldiers. Neither side said how many. 'Our people are returning home from Russian captivity,' said Volodymyr Zelenskyy, the Ukrainian president. The Ukrainian government agency overseeing the exchanges said it involved 'seriously ill and wounded' soldiers. Russia's defence ministry also confirmed the exchange. Zelenskyy said on Thursday that Russia's defence of Iran's authorities underscored the need for intensified sanctions against Moscow. Its deployment of Iranian-designed Shahed drones and North Korean munitions was proof that Kyiv's allies were applying insufficient pressure against the Kremlin. 'When one of their accomplices loses their capability to export war, Russia is weakened and tries to interfere. This is so cynical and proves time and again that aggressive regimes cannot be allowed to unite and become partners.' The Ukrainian foreign minister, Andrii Sybiha, said the conflict between Israel and Iran had exposed Russian hypocrisy, with Moscow condemning strikes against Tehran while 'ruthlessly' attacking Ukraine. 'The only rational conclusion is that Russia cannot be trusted in any situation, and it is always part of the problem rather than the solution.' The funeral has been held in Kyiv for Ukrainian soldier and former actor Yuriy Felipenko, who was killed on the frontline aged 32. Before joining the army in April 2024, Felipenko starred in several stage productions and TV shows, playing a lead role in Ukrainian crime serial The Colour of Passion. Fighting between Iran and Israel could deflect global attention from the Russian invasion of Ukraine and even bolster the Kremlin's war effort, a senior Ukrainian political source told AFP. The conflict has pushed up the price of oil and 'for Ukraine, the challenge is the price of oil, because if prices remain high for a long time, the Russians will earn more'. However, Kyiv has welcomed Israeli attacks on a country that has directly aided and provided weapons to Russia. Denmark when it takes over the presidency of the European Council will continue preparing Ukraine for EU membership against the objections of Hungary, the Danish Europe minister, Marie Bjerre, said on Thursday. The Danish presidency begins on 1 July. 'Unfortunately, Hungary is blocking and we are trying to put as much pressure there as we can and also do everything we can to make Ukraine continue with the necessary reform work,' said Bjerre.
Arab News
10 hours ago
- Business
- Arab News
Russia's economy minister says the country is on ‘the brink of recession'
ST. PETERSBURG, Russia: 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. Export losses On the issue of exports, Russia estimates potential losses due to global trade wars at $9 billion, but expects a gradual stabilization of flows and a possible expansion of supplies to China, Deputy Economy Minister Vladimir Ilyichev said. President Trump has upended longstanding trade relations since returning to the White House, using erratic tariff threats and aggressive negotiating tactics in a bid to secure better deals from trading partners. 'Overall, we estimate the impact on Russia of this reorientation at $33 billion, of which about $9 billion is the potential loss of Russian exports in third-country markets,' said Ilyichev.
