Russian GDP Expands 1% Annually in Q4

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The Russian GDP expanded by 1% in real terms from the previous year in the fourth quarter of 2025, picking up from the 0.8% expansion in the previous quarter, which was the slowest growth rate since 2023. The figure confirmed that Russia’s economy significantly underperformed other emerging markets as the Kremlin’s prolonged invasion of Ukraine allocated government spending in the military instead of investments that stimulate the economy. Low crude oil prices, softening natural gas exports due to European sanctions, muted trade with China due to their anti-involution campaign, and a strong ruble amid soaring interest rates by the Bank of Russia also pressured the Russian economy.

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