Russia economy meltdown as country ‘on brink of recession’ after 2 years of growth | World | News
Since Russia occupied Ukraine in February 2022, concerns about the state’s economy has been overcome to win war. While the Russian economy is growing, this is largely due to great state expenditures in the defense sector and military-industry complex.
But now, this growth of war has started to decrease and the Russian government seems tense. At the St Petersburg International Economic Forum, Russian Minister of Economic Development Maxim Reshetnikov warned that the country’s economy was “on the verge of stagnation”. “We grew at a very high speed for two years because the unused resources were activated,” Elvira Nabiullina, the Governor of the Central Bank of Russia, said. “We need to understand that most of these sources are really exhausted.”
In previous years, Russia’s flagship economic forum aimed to demonstrate the national economy. However, due to the abundance of international sanctions imposed on Russia from the war with Ukraine, this pride has greatly decreased.
According to UN data published on Thursday, June 19, Foreign Foreign Investment He fell sharply in Russia. Western investors were also largely largely in the forum in St Petersburg. A lot The multinational companies that are currently operating in Russia scaled their work like Pepsico and Nestle there.
“The reason why the West came to the forum was the reason why Russia was great, growing and profitable,” the executive partner of the Financial Communication company. He said. Reuters. “You will not find these three components very often.”
However, now the forum seems to be returning to its original role as a less event that Russian businesses communicate with politicians and a less event about PR.
According to Reuters, Sergei Aleksashenko, the former governor of Russia’s central bank, said that several serious businesses that are currently living abroad will see Russia as an investment place even if the war will end tomorrow.
“Everyone can clearly see that the situation with property rights worse every day.” He said.
