Russian Economy Slows to 1% Growth Amid Ukraine War Strain, Putin Projects Confidence

• Russian economic growth slowed to 1% in 2025, significantly below the official forecast of 1.5%, indicating strain from the ongoing Ukraine war.
• This slowdown contrasts sharply with 3.6% and 4.3% growth in 2023 and 2024, which were fueled by war-related spending and manufacturing.
• President Putin attributed the slowdown to deliberate measures to reduce inflation, which fell to 5.6% in 2025 from 9.5% the previous year, though still above his 4% target.
• The International Monetary Fund (IMF) assessed Russia's 2025 growth at an even lower 0.6%, suggesting the true extent of the slowdown may be greater.
• Russia faces challenges in restoring economic growth, with falling oil and gas revenues, increasing reliance on China due to sanctions, and limited cooperation with other allies.