Russia is over the worst
GDP is picking up, partly thanks to higher oil prices. But reforms are needed to consolidate the gains
Russia's economy is recovering from recession, but is stuck in second gear because growth can't really take off without structural reforms and major investment. A recovery in oil prices has helped drag Russia out of a two-year downturn-its longest in two decades—while improvements have been detected in the real economy in agriculture, industry, cargo transportation and non-residential construction. But household income, spending habits and consumption remain under severe pressure. In late March, finance minister Anton Siluanov upgraded the country's growth outlook for 2017 to 1.5-2% from 0.6%. "On the whole, we agree that the economy will be growing faster than initially expected," he said.
Also in this section
7 August 2025
Without US backing, the EU’s newest sanctions package against Russia—though not painless—is unlikely to have a significant impact on the country’s oil and gas revenues or its broader economy
6 August 2025
Diesel market disruptions have propelled crude prices above $100/bl twice in this century, and now oil teeters on the brink of another crude quality crisis
5 August 2025
After failed attempts to find a buyer for its stake in Russia’s largest oil producer, BP may be able to avoid the harsh treatment meted out to ExxonMobil and Shell when they exited—and could even restart operations if geopolitical conditions improve
1 August 2025
A number of companies have filed arbitration claims against Gazprom over non-deliveries of contracted gas or other matters—and won. The next step is to collect the award, but this is no easy task
