Russia economy meltdown as country on brink of recession after worst harvest in 17 years | World | News

While war expenditures collided with falling energy income, disaster harvest and Ukrainian strikes that hit the country’s fuel industry, the Russian economy is moving towards a major crisis. Tat Tatiana Orlova, the economist of developing markets in Oxford Economics, said, “We think that adopting a more optimistic opinion about the Russian economy is too early and wandering around a stagnation.

He said: “We also think that the possibility of the Russian economy will be an important possibility of the possibility of entering a technical recession in the next neighborhoods.” Orlova, the GDP growth, which is foreseen, will collapse from 4.3% in 2024 to 1.2% this year and stand below 1% in 2026 and 2027. Economy Minister Maxim Reshetnikov warned that Russia’s stagnations were “brinks ,, and that the potential debt rates of domestic banks are the understanding of high interest rates.

Financial squeezing is bored. Kremlin oil and gas income, the main war financing source, fell by 27% in July compared to the previous year compared to 787.3 billion rubles ($ 9.8 billion).

In January 2022, Moscow had to greatly withdraw to the national reserve fund, which fell from $ 135 billion to only $ 35 billion in May.

Peter Frankopan, who helped from the International Strategic Studies Institute, wrote in an recent article, “Russia’s bad 2025 harvest is more than an air event: Russia reveals the structural fragility of the war economy and the increasing risks for a system established on financial bumpers and fossil fuels.”

Russia is based on the worst harvest in 17 years, and the cereal output is expected to fall 18% from the 2022 summit to 130 million metric tons. The crops were first damaged by spring frosts, then with record summer temperature and drought.

Analysts warn that the energy, which has long been accepted as the most powerful pillar of Russia, has become a weakness.

An article translated and shared by the former Ukrainian Ministry of Interior Advisor Anton Geraschenko, a letter from the Russian telegraph channel, “Russia’s fuel market tensions are increasing: Primorie has a record levels of long queues and wholesale prices for gas stations and wholesale prices for gasoline and diesel.

“Officially, the reasons are no longer hidden – the refineries are closing after Ukrainian strikes. It was empty up to 14% of its capacity to process on intense summer days.”

The same article said that in 2025, Ukraine shifted its tactics from single strikes to the same facilities and repeatedly made it impossible.

“For example, after a series of attacks, the Ryazan Refinery (5% of Russia’s capacity) was stopped, while the primary functioning of the Novokuibyshevsk refinery (3%) was damaged.

“The largest refinery in Southern Russia stopped buying crude oil in addition to Volgograd’s Lukoil, as well as Samara and Syzran refineries.”

Nezygar also drew attention to a technological bottleneck: “Modern Russian refineries were built using Equipment from Shell, Axens, UOP and Haldor Topsoe.

“After 2022, the delivery of equipment, software and catalysts has ended. Catalysts are consumables, change every 1-3 years every 1-3 years; Russia is based on low performance on old stocks or Chinese analogues without Western materials.

“As a result, every ukraine to a hydrocracing or reform unit leads to a period of deduction for months.”

Post concluded that “Russia, which was once an economic source of power, became a vulnerable place of the oil and gas industry”.

In a project union article, an economist and Russian expert Anders åslund is rapidly approaching a financial crises that will cover the war efforts of the Russian economy.

“This shows that the walls are approaching him, although this is not enough to force Putin to search for peace.”