FX.co ★ Russian GDP Expands 1% Annually in Q4

Russia’s real GDP grew by 1% year-on-year in the fourth quarter of 2025, up from 0.8% in the previous quarter, which had marked the slowest pace of expansion since 2023. The data confirm that the Russian economy has significantly lagged behind other emerging markets, as the Kremlin’s prolonged invasion of Ukraine has diverted government spending toward the military rather than into growth-enhancing investment. Additional headwinds included low crude oil prices, weaker natural gas exports amid European sanctions, subdued trade with China driven by its anti-involution campaign, and a strong ruble supported by sharply higher interest rates from the Bank of Russia.