Russia’s Economy Minister Maxim Reshetnikov warned that the country is “on the brink of recession,” citing recent economic indicators and business sentiment.

Axar.az, citing AP, reports that speaking at the St. Petersburg International Economic Forum, he emphasized that whether Russia enters a recession depends on government policy decisions.

Despite outperforming expectations since sanctions over the Ukraine war began in 2022, Russia's economy faces long-term challenges from inflation and declining foreign investment. While defense spending has driven short-term growth and low unemployment, economists caution that overreliance on the military sector could lead to stagnation.

In contrast, Russia’s finance and central bank leaders offered more positive views, describing the economy as “cooling” or “coming out of overheating” rather than heading into a full recession.