Russia's economy stalls, forcing Kremlin to divert civilian resources

The Center for Countering Disinformation reports.

According to official data, in July 2025, GDP growth was 0.4% compared to the same period last year, indicating near-economic stagnation.

For comparison, GDP growth was 1% in June this year and 4.5% in December last year. Thus, over six months, the pace of economic growth has slowed 11-fold.

Russia’s industry is teetering on the brink of zero growth. Sectors that showed positive trends last year have now slipped into recession: furniture production fell by 12%, clothing by 7%, and electrical equipment by 6.5%. In metallurgy, the decline has already exceeded 10%.

Even the military-industrial complex, which the Kremlin considers critical during the war against Ukraine, is losing momentum. Growth in the production of metal products and electronics has slowed by 3.5–5 times.

The Center for Countering Disinformation emphasized that reserves for further “fueling” Russia’s economy are nearly exhausted. To continue financing the war, the authorities will be forced to raise taxes and seize resources from the civilian sector, further slowing the country’s development.

“The war and international sanctions are pushing Russia’s economy ever deeper into a prolonged crisis,” the Center for Countering Disinformation concluded.

• The Ust-Luga export terminal will operate at only about 350,000 barrels per day in September, roughly half of its normal capacity.