US EditionRussian economy in worse shape than Moscow says, report for EU shows
- On May 13, a report presented to EU finance ministers by researchers from a leading European economic think tank highlighted increasing pressure on Russia’s economy caused by its ongoing war in Ukraine and the effects of Western sanctions.
- This strain results from falling revenues in oil and gas, high military spending, and doubts about the credibility of official Russian economic statistics and inflation data.
- The report warns that while Russia’s war economy stimulus kept growth and employment stable short term, reliance on opaque financing and shrinking fiscal buffers poses long-term risks, including a possible banking crisis.
- Torbjorn Becker emphasized that any central bank engaging in such practices would quickly lose credibility, pointing out that underreporting inflation leads to inflated real GDP figures, while European Economic Commissioner Valdis Dombrovskis highlighted the unreliable nature of Russian economic data and the growing vulnerability of Russia’s economy.
- The EU continues tightening sanctions targeting Russia’s oil exports and financial system to limit its war capacity, but experts question how long Russia’s militarized economy can endure under these pressures.
26 Articles
26 Articles
Despite growth claims, Russia’s war economy shows deep risks, Reuters reports
Russia’s economy faces mounting pressure due to its full-scale invasion of Ukraine and Western sanctions, according to a new report from the Stockholm Institute of Transition Economics (SITE) presented for talks of European Union finance ministers on May 13.While the Kremlin continues to project economic strength—citing GDP growth of 4.3% in 2024—SITE researchers warned that the apparent resilience is misleading. "The fiscal stimulus of the war …
LIVE war Ukraine | Russian economy is in much worse shape than Russians themselves say
The Russian economy is in a much worse state than the Russians themselves say, according to European Commissioner Valdis Dombrovskis (Economy). Research by the Stockholm Institute of Transition Economics shows this. Read all about the war in Ukraine and the situation in Russia in our live blog.
Associated Press News
European economist says Russia's economy is strained due to the Ukraine war and sanctions
A leading economist has been telling EU finance ministers that Russia’s economy is under growing strain as its invasion of Ukraine drags on.
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