Putin demands explanations as Russia's economy contracts in early 2026
Updated
Updated · CNN · May 2
Putin demands explanations as Russia's economy contracts in early 2026
10 articles · Updated · CNN · May 2
GDP shrank 1.8% in the first two months of 2026, as Moscow businesses reported weak demand, rising taxes and daily price increases.
Communist leader Gennady Zyuganov warned in parliament of possible revolutionary unrest, while Economy Minister Maxim Reshetnikov said reserves were largely exhausted and conditions had become more complicated.
After wartime spending initially cushioned sanctions, higher taxes, refinery attacks, internet outages and falling purchasing power are now straining firms, even as Russian billionaires' combined wealth rose 11%.
As billionaires thrive while citizens suffer, is Russia's wartime economy sowing the seeds of a future revolution?
Can a temporary oil boom save Russia's economy from its predicted 'quiet decay' and rising social unrest?