Russia’s Economy Minister, Maxim Reshetnikov, warned today that the country is “on the verge” of recession, basing his assessment on “current business sentiment and indicators” he shared at the St Petersburg International Economic Forum. Urging action, he added: “Everything else depends on our decisions,” and called on the central bank to extend “a little love for the economy” by adjusting its monetary stance.
In October 2024, Russia’s central bank raised its key interest rate to 21 percent to rein in inflation. It held that level until this month, when it trimmed the rate by one percentage point, to 20 percent. Despite the easing, Russia’s GDP growth slowed to just 1.4 percent year-on-year in Q1 2025—the weakest quarterly performance in two years.
Analysts point to massive government spending on the war in Ukraine and widespread labour shortages as drivers of persistent price rises. Annual inflation has remained above 8 percent—more than double the central bank’s 4 percent target—for over a year. Economists caution that growth fuelled by defence production “is unsustainable and does not reflect a real increase in productivity.”
Meanwhile, in Ukraine’s east, local officials and social media channels reported that Kharkiv and Odesa came under drone attack in the early hours of Friday. There were no immediate casualty figures, but infrastructure and residential areas sustained damage.
The UN’s nuclear watchdog has raised fresh concerns about the Zaporizhzhia power plant—currently under Russian control. The International Atomic Energy Agency warned the facility “cannot start operating again as long as this large-scale war continues,” citing unresolved issues with cooling water and reliance on off-site electricity.
On the diplomatic front, both Moscow and Kyiv announced another exchange of captured soldiers on Thursday. “Our people are returning home from Russian captivity,” said President Volodymyr Zelenskyy. Ukraine’s exchange agency noted the swap involved “seriously ill and wounded” servicemen, a fact later confirmed by Russia’s defence ministry.
President Zelenskyy condemned Russia’s support for Iran amid the Middle East conflict, arguing it underscores the need for stronger sanctions against the Kremlin. “When one of their accomplices loses their capability to export war, Russia is weakened and tries to interfere,” he said. “This is so cynical and proves time and again that aggressive regimes cannot be allowed to unite and become partners.”
Ukrainian Foreign Minister Andrii Sybiha added that Russia’s recent condemnations of strikes on Iran reveal its double standards. “The only rational conclusion is that Russia cannot be trusted in any situation, and it is always part of the problem rather than the solution.”
The article was originally published on Politics Nigeria.
