The "controlled cooling" of the Russian economy may become unmanageable.

Source: The Moscow Times

Details:The Russian economy is slowing down sharply, and the authorities are increasingly concerned that the "controlled cooling" of the economy, as Deputy Prime Minister Alexander Novak called it, could become uncontrollable, the publication says.

The publication quotes Russian Minister of Economic Development Maxim Reshetnikov, who noted that more and more sectors of the real economy are showing a decline in production. "The growth rate of consumer demand is slowing down. Meanwhile, the increase in household income continues to go into savings rather than the consumer market," he said.

Russian officials note a decline in civilian goods production; in March, civilian production fell to its lowest level since April 2023. Industry is stagnating, and growth is exclusively in the military-industrial complex.

"The authorities are already forced to support the coal industry and are helping to restructure the debts of the largest companies in the forestry sector. Vladimir Putin regularly issues orders to provide one or another form of support to the industry: to help with loans," The Moscow Times writes.

Background :

• Earlier it was reported that the cost of Russian oil exports by sea fell to its lowest level in over a year – approximately US$1.2 billion per week, which is the lowest figure since March 2023.
• In the four weeks leading up to 1 June, Russia exported an average of 3.24 million barrels of crude oil per day. This is 170,000 barrels less than in the previous four-week period. In just the week leading up to 1 June, the drop was more than 800,000 barrels.
• Earlier, it was reported that food inflation in Russia last year set a nine-year record (11.05%), and at the beginning of 2025, price growth accelerated again. By the end of May, potatoes in Russia had risen in price by 173% year-on-year, the highest in 23 years of available official statistics.
• It was also reported that in 2025, Russia and Belarus are facing serious problems in the potato market, which is the main food product for local consumers.
• Earlier, it was reported that food prices in Russia could rise sharply, and their range in stores could shrink if the authorities oblige producers to comply with food standards. This warning was issued by leading food producers.
• The Foreign Intelligence Service of Ukraine said that Russia has spent more than half of its National Welfare Fund (NWF) over three years of full-scale invasion.
• If the current restrictions and additional measures by the West remain in place, in particular the tightening of controls on the circumvention of oil sanctions, Russia risks losing the last remnants of its national welfare fund as early as 2026.

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