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Russia's Economy Defies Odds: A 'Miracle' Growth Amid Sanctions
6 Jun
Summary
- Russian economic growth continues despite high interest rates and a strong ruble.
- Sberbank CEO German Gref described the current growth as a 'miracle'.
- Declining investment for four consecutive quarters is a worrying trend.
Russia's economy is experiencing continued growth, a situation Sberbank CEO German Gref characterized as a "miracle" amidst challenging economic conditions. These circumstances include a strong ruble and a 14.5% interest rate, which have contributed to a significant slowdown from previous years.
The country's commodity-dependent economy had previously seen growth decelerate to approximately 1% last year, following a 4.9% expansion in 2024. A contraction of 0.2% was recorded in the first quarter of 2026, attributed to high interest rates, Western sanctions, and the robust ruble.
Despite the ongoing growth, Gref expressed concern over a "worrying" trend of declining investment, which has persisted for four consecutive quarters. He anticipates the ruble will trade around 84-85 against the dollar by the end of 2026, with global oil prices expected to remain high.
