Story perspectives

Russia's Economy Shrinks 1.8% Amid Sanctions and Inflation

4/18/2026

Summary

Story summary

Russia's economy contracted 1.8% in the first two months of 2026, prompting President Vladimir Putin to demand measures to stimulate growth.
Growth reached 4.1% in 2023 and 4.9% in 2024, but Western sanctions and high rates remain headwinds.
Central Bank Governor Elvira Nabiullina warned of a labor shortage worsened by the Iran war, raising inflation.
The government forecasts 1.3% growth for 2026, but budget stability and oil revenues remain concerns.

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Story summary

Russia's economy contracted 1.8% in the first two months of 2026, prompting President Vladimir Putin to demand measures to stimulate growth.
Growth reached 4.1% in 2023 and 4.9% in 2024, but Western sanctions and high rates remain headwinds.
Central Bank Governor Elvira Nabiullina warned of a labor shortage worsened by the Iran war, raising inflation.
The government forecasts 1.3% growth for 2026, but budget stability and oil revenues remain concerns.