
Kremlin on edge as economic struggles grip nation. Russia braces for uncertain times ahead.
Published by the BBC
21st June 2025
At the St Petersburg International Economic Forum, a Russian MP approached me with an intriguing question about bombing Iran. I reassured him that I had no such plans and the conversation quickly veered off to theories about Britain and Donald Trump. This unusual encounter highlighted the underlying tension and concerns in Russia amidst economic challenges.
President Vladimir Putin's speech at the forum focused on the economy, but his remarks about Russian soldiers claiming territory raised eyebrows. This aggressive stance may not be the most conducive approach for attracting foreign investment and cooperation, especially in the aftermath of the conflict in Ukraine.
Since the invasion of Ukraine, Russia's economy has been overshadowed by military priorities, with significant state spending on defence. Now, as the growth stemming from the war effort begins to slow down, there are warnings of a looming recession. The Russian government is clearly on edge about the economic outlook.
The St Petersburg International Economic Forum, once a showcase for Russia's economy, has lost its luster due to international sanctions and the exodus of Western companies. While there are signs of potential interest from American investors, the ongoing conflict in Ukraine remains a major obstacle to the return of Western businesses.
Russia faces tough economic challenges, including high inflation, interest rates, and reports of stagnation. It remains to be seen how these issues will be addressed and resolved in the near future.
war, russia, putin, economy, sanctions
Monday 23rd Jun 2025