Putin says Russian economy stable despite energy sector pressure

Russian President Vladimir Putin said on Wednesday that the domestic economy remains stable despite "external attempts to destabilize the fuel and energy sector," asserting that recent market difficulties are temporary and will not derail broader growth trends.

Speaking at a meeting on economic issues in Moscow, Putin stated: "The state of the domestic economy and its key sectors is stable. The difficulties being created for us in the fuel market are, of course, temporary and are not capable of influencing the overall economic dynamics," citing preliminary Ministry of Economic Development data that showed the economy expanded 0.3% in May compared to the previous year. He noted that gross domestic product grew by 0.2% during the first five months of the year.

Budget performance and structural goals

The president highlighted that domestic demand from government, businesses, and households continues to serve as the primary driver of economic growth. He said public finances remain stable, with the federal budget posting a surplus of 196 billion rubles ($2.5 billion) in June, supported by increases in both oil-and-gas and non-oil-and-gas revenues.

However, Putin acknowledged persistent deficits in regional budgets and ordered an extension of loan repayment deadlines for local governments. He added that launching a new investment cycle and accelerating structural economic changes remain key priorities, with additional measures to be discussed at a meeting of the Council for Strategic Development and National Projects in August.