VTB CEO Warns Russia May Stall at 0%-0.5% Growth as 14.5% Rates Choke Investment
Updated
Updated · Reuters · Jun 4
VTB CEO Warns Russia May Stall at 0%-0.5% Growth as 14.5% Rates Choke Investment
3 articles · Updated · Reuters · Jun 4
Summary
0%-0.5% growth is now VTB's 2026 outlook for Russia, with CEO Andrei Kostin saying the economy could stagnate this year rather than match stronger expansion expectations.
14.3% first-quarter capital-investment decline and a 14.5% key rate are the main drag, he said, though VTB expects rates to fall to 11%-12% by year-end as inflation eases.
Chinese and Gulf investors are showing more interest in Russian assets this year, with Kostin saying some Chinese companies are shifting from exports to local production.
$50 billion of seized assets remains hard to re-privatise because the government is asking above-market prices, limiting sales that could help a budget strained by war spending.
Kostin said investment could improve more sharply when the war in Ukraine ends, especially in fixed assets and potentially Russia's stock market.