On thinning ice: After almost four years of war, Russia’s central bankers are running out of tricks to keep the economy afloat
The Russian economy moved into an unmistakable period of decline in 2025: businesses lost money, the treasury remained solvent only by raising taxes, and inflation was brought under control only thanks to high central bank interest rates. At the same time, the year resolved a few key contradictions. Unlike in 2024, when The Insider described Russian inflation as “embarrassingly high for a country with a strong budget,” 2025 saw a noticeably weaker budget, but lower inflation.