Russia Deliberately Slows Economic Growth to Tackle Inflation
Moscow, Thursday, 18 September 2025.
President Vladimir Putin announced that Russia is purposely decelerating its economic growth to manage inflation, despite global challenges, emphasizing that a recession is not imminent.
Strategic Economic Deceleration
On September 18, 2025, President Vladimir Putin announced that Russia is intentionally slowing its economic growth to combat rising inflation. During a televised meeting with government officials, Putin emphasized that this strategic move is designed to maintain macroeconomic stability amidst global economic uncertainties. Despite this deliberate slowdown, he assured that Russia is far from facing a recession [1].
Impact on Global Oil and Trade
Russia’s decision to curb economic growth comes at a critical time as the nation grapples with the effects of international sanctions and fluctuations in global oil markets. As the world’s second-largest oil exporter, Russia’s economic strategies have significant implications for global oil prices and trade relationships, especially with Western countries. Analysts suggest that this move could lead to adjustments in global oil supply and pricing, potentially impacting economies reliant on Russian oil [1].
Sanctions and Economic Resilience
The backdrop of this economic maneuver is the extensive sanctions imposed by the United States, Europe, and their allies. Since the 2022 conflict in Ukraine and the annexation of Crimea in 2014, Russia has been subject to over 25,000 sanctions aimed at destabilizing its economy and undermining support for the Putin administration. Despite these pressures, Russia’s economy grew at rates surpassing those of G7 countries in 2023 and 2024, but high interest rates have recently begun to slow growth sharply [1].
Future Economic Outlook
Looking ahead, Russia’s focus on inflation control rather than immediate growth reflects a broader strategy to secure long-term economic resilience. The Russian Central Bank’s earlier report indicated a technical recession with two consecutive quarters of GDP decline, yet Putin downplays recession fears, citing a stable labor market as evidence of economic health. This strategy highlights Russia’s prioritization of economic stability over rapid growth in the face of external economic pressures [1].