The economy of the Russian Federation, which showed growth in 2023–2024 due to a significant increase in military spending, sharply slowed down in July 2025. By the end of July, the GDP growth rate was only 0.4% year-on-year. Export revenue continues to decline: in the first quarter of 2025, it fell to $96 billion, while at the beginning of 2022, this figure was $155 billion. The financial situation is affected by the strengthening of the ruble, falling global oil prices, and rising costs of external borrowing.
This is reported by Business • Media
Strengthening Sanctions and Their Impact on the Economy
The Central Bank of Russia was forced to significantly raise the interest rate to combat inflation, which led to a reduction in lending and a decrease in consumer activity. At the same time, Western sanctions against Russia are gradually tightening; however, their impact is partially offset by the transit of prohibited goods through third countries, re-exports, and barter schemes. Experts believe that further tightening of sanctions, particularly the imposition of tariffs on countries purchasing Russian oil, could lead to the collapse of the Russian economy and force the Russian dictator Vladimir Putin to agree to negotiations to end the war against Ukraine.
“Stricter Western sanctions, including tariffs for countries buying Russian oil, will lead to the complete collapse of the Russian economy, forcing the Russian dictator Vladimir Putin to finally engage in negotiations to end the war against Ukraine, according to the publication.”
Changes in Sanction Policy and Russia’s Response
At the same time, U.S. President Donald Trump’s decision to lift sanctions against the Belarusian airline Belavia creates opportunities for the necessary aviation spare parts to reach Russian airlines. The U.S. is now trying to prevent the development of this scenario and control the supply of critical components.
Additionally, Russia has appealed to the International Civil Aviation Organization to ease sanctions, arguing that it poses a threat to flight safety. In particular, the country is requesting permission for the supply of aviation spare parts and transit flights through its territory, emphasizing the need to ensure aviation safety.