As the russian aggressor government struggles to develop a strategy for economic growth as Ukrainian drone attacks wreak havoc on the economy, russian business is calling the best way to end the war in Ukraine.
This was reported by Reuters, Ukrainian News Agency reports.
Russia's USD 3 trillion, resource-dependent economy slowed sharply to about 1% growth last year from 4.9% in 2024, and contracted by 0.2% in the first quarter of 2026. And now modest growth of 0.4% is forecast this year.
Among the factors are the attacks by Ukrainian drones on oil refineries, fertilizer plants and ports, which, as indicated, have disabled a significant part of the economy.
Meanwhile, russian dictator vladimir putin has instructed to find ways to restore economic growth. Business believes that the best way to achieve this would be to end the war in Ukraine.
As the publication notes, several prominent representatives of the russian elite have tried in the past to warn putin about the economic consequences of the war, but russia's representative in contacts with the United States, Kirill Dmitriev, has praised the potential economic benefits of concluding a peace agreement.
Economic growth will be the main topic of the International Economic Forum in St. Petersburg from June 3 to 6. However, former deputy chairman of the Central Bank, Oleg Vyugin, in a comment to the publication noted that with a double-digit base interest rate, tax increases to finance the war and reduced investment, achieving economic growth will be difficult.
The factors that stimulated russian growth during most of putin's rule - such as foreign investment, energy revenues, government spending, lower interest rates, and more recently import substitution, digitalization and war-related demand - are either no longer there or have exhausted their potential.
The jump in oil prices - russia's main export - due to the war in the Middle East and the almost complete closure of the Strait of Hormuz has given the government a temporary respite, but it is expected to be short-lived.
As Ukrainian News Agency earlier reported, russia has introduced a ban on the export of aviation kerosene abroad, which will be in effect from June 1 to November 30, 2026 inclusive. The decision applies to all exports of this type of fuel.
Who we are: About us, Contacts. How we write news and our principles: Editorial code. We did our best. If you found this valuable – please support us.
To request a correction, please send an email.