Peskov Rejects Concerns over Economic Crisis

The Kremlin has rejected claims that the Russian economy is in a critical situation. Spokesman Dmitry Peskov said that both the government and President Vladimir Putin are aware of the existing problems but that, in his view, macroeconomic stability remains intact.

His remarks came shortly after the release of a survey by the Russian central bank showing a sharp deterioration in business sentiment.

The business climate index fell to its lowest level since mid-2022, while companies also expect prices to rise more rapidly. Investment banker Yevgeny Kogan noted that such a significant deterioration has been recorded only rarely since 2002 and has often preceded economic crises in the past.

He said rising inflationary pressures are also being driven by fuel supply issues following Ukrainian attacks on Russian refineries.

Kogan warned that Russia could face stagflation if economic growth slows while high inflation persists.

(Reuters, mja)