Putin Hosts 5th Wartime Economic Forum as Russia Forecasts 0.4% Growth

2 articles · Updated · Reuters · Jun 1

Russia heads into Putin's St. Petersburg economic forum with growth forecast at just 0.4% in 2026 after the economy shrank 0.2% in the first quarter.
Ukrainian drone strikes on refineries, fertiliser plants and ports have damaged about one quarter of refining capacity, adding fuel-shortage risks to pressure from sanctions, high interest rates and a strong rouble.
Business leaders and economists told Reuters the government has few credible growth tools left, with double-digit rates, war-funded tax increases and falling investment undermining hopes for a rebound.
Peace talks with Ukraine are on hold, leaving potential U.S. investment and possible sanctions relief frozen; several Russian insiders said ending the war is the clearest path to revive growth.
The June 3-6 forum will focus on labour shifts, AI platforms and consumer demand, but analysts say Russia's $3 trillion economy lacks internal drivers and faces stagnation without an external boost.

Can Russia's pivot to new BRICS allies truly save its war-torn economy from long-term stagnation?

As Ukrainian drones cripple its oil refineries, is Russia's core economic engine starting to fail?

With its civilian economy shrinking, how long can Russia's society sustain massive military spending?