Kremlin Adviser Warns on Russian Economy
(MENAFN) The Russian economy is exhibiting indicators of stress, prompting a leading Kremlin official to warn that monetary policy must be relaxed promptly to prevent further deterioration.
In June, the Bank of Russia lowered its main interest rate by 100 basis points to 20%, citing a reduction in inflationary pressures.
This was the first rate cut since 2022, a year when the central bank implemented a strict monetary stance to stabilize the economy amid Western-imposed sanctions.
Boris Titov, the Presidential Commissioner for Entrepreneurs’ Rights in Russia, raised concerns while discussing a recent survey conducted by the economic forecasting institute of the Russian Academy of Sciences.
The study evaluated industrial and infrastructure businesses during the spring season.
“The results, though expected, are not too encouraging,” Titov stated on Telegram on Monday, highlighting a decline in investment activity.
The survey revealed that less than half of the companies are currently investing, down from 64% a year earlier.
Only 35% of firms are preparing to initiate new production, a decrease from 50%.
Additionally, access to financing has deteriorated — just 32.5% of businesses view investment loans as affordable, compared to nearly 40% previously.
Meanwhile, the percentage of companies investing without borrowing has almost doubled, rising from 24% to 43.7%.
An increasing number of respondents also expressed concerns about weakening domestic demand.
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