Putin warned the oligarchs about the risk of economic crisis

Russian President Vladimir Putin emphasized that the slowdown in the country's economic growth rates is inevitable. Speaking at the Union of Russian Industrialists and Entrepreneurs (RSTI) congress on March 18, he stated that the government and the Central Bank need to take measures to stabilize the economy.

Risk of Economic Cooling

Putin acknowledged that Russia's Gross Domestic Product (GDP) is expected to grow by 4.1 percent in 2024, but he pointed out that this growth is not sustainable and the economy is starting to cool down. "The Central Bank shows one indicator, while the government and the Ministry of Economic Development present different figures. According to them, growth will be 2-2.5 percent. We need to take action to avoid a collapse or excessive cooling," said Putin.

The president noted that this issue is delicate and discussing it could prolong the meeting. "If we start discussing this, we could be in session until morning," he added.

Risk of Economic Crisis and Inflation Rate

The Russian Ministry of Economic Development predicts that economic growth will decline from 4.1 percent in 2025 to 2-2.5 percent. The Central Bank expects even lower growth, at 1-2 percent. Meanwhile, the inflation rate is expected to remain significantly above the target of 4 percent, around 7-8 percent.

Military Industry and Economic Future

International experts emphasize that the rapid development of the Russian economy is mainly linked to the military industry. They argue that this growth will not be long-term and that the Russian economy is beginning to show signs of overheating. In such circumstances, serious measures are required from the government and the Central Bank to stabilize the economy in the long term.

Putin's warning serves as a serious signal for Russian oligarchs and major industry leaders, indicating that they need to consider new strategies to mitigate the risk of economic crisis.