Russia’s economy minister, Maxim Reshetnikov, has raised alarm over the country being “on the verge” of a recession, based on deteriorating business sentiment and economic indicators. Speaking at the St Petersburg economic forum, an event intended to instill confidence in the Russian economy, Reshetnikov urged the central bank to support growth by showing more flexibility and concern for domestic needs.
His appeal reflects growing unease within the government as inflation and other pressures strain the Russian economy, despite public efforts to project stability.
War Spending, Inflation, and Attacks Deepen Russia’s Economic and Regional Stability Crisis
Russia’s economic challenges stem largely from spiraling inflation and massive war-related expenditures. The central bank hiked interest rates to 21% in late 2024 to curb inflation, only slightly reducing them to 20% this month. Meanwhile, economic growth has plummeted to 1.4% in Q1 2025—the slowest rate in two years.
Economists argue that defense-driven growth is not sustainable and fails to reflect real productivity. Rising prices, labor shortages, and continued war spending have combined to create a volatile and unhealthy economic environment.
Russia Nears Recession as War Costs Soar and Economic Stability Rapidly DeterioratesMilitary activity between Russia and Ukraine continues to escalate. On Friday morning, Kharkiv and Odesa came under attack by Russian drones. Meanwhile, the Zaporizhzhia nuclear power plant remains inoperable due to ongoing war conditions, according to the UN’s International Atomic Energy Agency.
Held by Russian forces, the plant faces cooling and electricity supply challenges that make safe operation impossible. These developments underscore how the war continues to endanger both regional stability and global security.
Ukraine Condemns Russia’s Alliances and Fights for Global Attention and Support
Ukraine continues to criticize Russia’s international alliances, particularly its ties with Iran and North Korea. President Volodymyr Zelenskyy called for stronger sanctions against Moscow, citing its use of Iranian drones and North Korean munitions.
Ukrainian officials further condemned Russia’s apparent double standards, criticizing attacks on Iran while waging relentless strikes on Ukraine. This messaging is part of Kyiv’s broader diplomatic effort to rally international support and isolate Moscow on the global stage.
Ukraine remains concerned that global crises, such as the Iran-Israel conflict, could shift attention away from its struggle against Russia. With oil prices rising due to Middle East tensions, there’s a risk that Russia could benefit economically from sustained global instability.
Nevertheless, Ukraine continues to pursue its European integration, with Denmark pledging support for Kyiv’s EU membership despite Hungarian opposition. Meanwhile, Ukraine mourns the loss of soldiers like Yuriy Felipenko, a former actor turned war hero, symbolizing the human cost of the ongoing conflict.
