Putin's Push for Economic Revival Amid Contractions

Russian President Vladimir Putin criticized officials over an economic contraction and urged them to devise strategies to boost growth. Despite a tight monetary policy and Western sanctions, the IMF adjusted Russia's GDP forecast for 2026. Putin seeks new measures to reduce dependence on volatile global commodity markets.

Russian President Vladimir Putin has criticized his top officials following a 1.8% contraction in the economy during the year's first two months. He demanded new strategies to stimulate economic growth.

Russia's growth slowed to about 1% in 2025 from 4.9% in 2024, primarily due to the central bank's stringent monetary policies and Western sanctions that impacted revenue from oil sales. Reacting to an oil price surge in March caused by the Middle East crisis, the International Monetary Fund (IMF) raised its prediction for Russia's GDP growth in 2026 to 1.1% from 0.8%.

Though the government predicts a 1.3% growth rate this year, they might revise this outlook downward due to a poor start. Putin, addressing key economic figures like aide Maxim Oreshkin, central bank governor Elvira Nabiullina, and Finance Minister Anton Siluanov, stated that blaming the contraction solely on calendar factors was insufficient. He urged them to propose additional growth-boosting measures and diversify the economy from volatile global commodities.

(With inputs from agencies.)