The Russian economy has exhausted its accumulated resources and is falling downward.

According to Bloomberg, the Russian economy is beginning to feel the serious consequences of high interest rates and persistent inflation. The Russian Central Bank predicts a decline in growth rates to 0.5% in 2025 from the current 3.5-4%, and businesses are already reducing their investments due to the threat of bankruptcies.

It is noted that the relatively stable period for the Russian economy, which was buoyed by previously accumulated resources, has ended. Until now, the Russian economy has managed to operate despite external attempts to weaken it, and together with high wages, this has helped the Kremlin maintain a sense of normality. However, negative factors are beginning to appear amidst the relative prosperity: a record high benchmark interest rate, persistent inflation, problems with international payments, a weak ruble, dependence on oil prices in an unstable market, and economic problems in China, Russia’s leading trading partner.

Even the largest companies, such as Transneft, Russian Railways, Severstal, and Norilsk Nickel, are reviewing their strategies and reducing investment.