The economy of the Russian Federation is significantly slowing its growth rate amid sanctions pressure and declining export revenues. After a period of growth driven by increased military spending in 2023–2024, by July 2025, the annual growth of gross domestic product had slowed to 0.4%.
This is reported by Finway
Decline in Export Revenues and Currency Flow
A noticeable drop in export earnings has become a key factor in the worsening economic situation. In the first quarter of 2025, currency earnings from goods exports amounted to $96 billion, significantly lower compared to $155 billion at the beginning of 2022. Among the main reasons for this are the strengthening of the ruble, falling global oil prices, and the high cost of external loans.
Impact of Sanctions and Changes in Credit Policy
The Central Bank of Russia was forced to significantly raise the interest rate to combat inflation, which led to a decrease in lending and consumption in the country. At the same time, sanctions pressure from Western countries continues to intensify, although its effect is partially offset by the transit of prohibited goods through third countries, re-exports, and barter transactions.
“Stricter Western sanctions, including tariffs for countries purchasing Russian oil, will lead to the complete collapse of the Russian economy, forcing Russian dictator Vladimir Putin to negotiate an end to the war against Ukraine, according to the publication.”
At the same time, external political decisions are also influencing the situation. U.S. President Donald Trump made the decision to lift sanctions on the Belarusian airline Belavia, which opens up the possibility of supplying important aviation parts to Russian airlines. The American side is taking measures to prevent this development.
Additionally, Russia has appealed to the International Civil Aviation Organization (ICAO) to ease sanctions, arguing this on the grounds of flight safety, particularly regarding the supply of parts and transit flights.