The Russian economy is “on the verge” of recession, the country’s economy minister has warned, as President Vladimir Putin prepared to address an event aimed at attracting international investment.
Maxim Reshetnikov told the St Petersburg economic forum that “current business sentiment and indicators” pointed towards an economic contraction, adding that “everything else depends on our decisions”.
He urged the central bank to support the economy when it comes to monetary policy as the Kremlin said that the current key interest rate - of 20% - was putting a break on the economy even though that was a conscious decision.
Mr Putin will deliver a speech about the situation in politics and economy at the event on Friday afternoon, according to state-run news agency TASS.
His comments came as one person died and 14 were left wounded after a Russian drone attack hit several high-rise apartment blocks in the Ukrainian port city of Odesa.
Meanwhile, Mr Putin claimed the whole of Ukraine was “ours” as he cautioned that advancing Russian forces could take the Ukrainian city of Sumy as part of a bid to carve out a buffer zone along the border.
Russia's economy minister says the country is on the brink of recession
Putin sends warning to Germany over Ukraine supplies: ‘Serious damage’
Tried and tested in war: For European drone manufacturers, Ukraine is the place to be
North Korea will send 5,000 military construction workers to Russia, Kremlin says
Key Points
- Multiple killed and wounded in Russian attack on Odesa
- 'Russia on the verge of recession,' Putin's economy minister warns
- Russian envoy to UK accidentally admits massive battlefield losses
- Ukraine's nuclear plant cannot restart during war, says UN nuclear watchdog
- Zelensky announces new commander of Ukraine's land forces
Putin says 'the whole of Ukraine is ours'
23:48 , Alexander ButlerRussian President Vladimir Putin said on Friday that in his view the whole of Ukraine was "ours" and cautioned that advancing Russian forces could take the Ukrainian city of Sumy as part of a bid to carve out a buffer zone along the border.
Ukraine's foreign minister denounced the statements as evidence of Russian "disdain" for US peace efforts and said Moscow was bent on seizing more territory and killing more Ukrainians.
Russia currently controls about a fifth of Ukraine, including Crimea, more than 99 per cent of the Luhansk region, over 70 per cent of the Donetsk, Zaporizhzhia and Kherson regions, and fragments of the Kharkiv, Sumy and Dnipropetrovsk regions.
"We have a saying, or a parable," Putin said. "Where the foot of a Russian soldier steps, that is ours.”
Watch: Putin sends warning to Germany over supplies for Ukraine
23:00 , Daniel KeaneNordic-Baltic nations vow further measures against Russia's 'shadow fleet'
22:00 , Daniel KeaneBritain, along with Nordic-Baltic nations and other allies, pledged coordinated measures to further counter Russia's so-called "shadow fleet" operating in the Baltic and North Sea, the UK foreign office said on Friday.
"If vessels fail to fly a valid flag in the Baltic Sea and the North Sea, we will take appropriate action within international law," Britain and the Nordic-Baltic nations said in a joint statement.
The statement was issued after a meeting of representatives from Britain, Belgium, Denmark, Estonia, Finland, France, Germany, Iceland, Latvia, Lithuania, the Netherlands, Norway, Poland and Sweden.
Kremlin says date for next round of peace talks to be agreed next week
21:00 , Daniel KeaneKremlin spokesman Dmitry Peskov has said that the date for the next round peace talks is expected to be agreed upon next week.
Kyiv officials have not recently spoken about resuming talks with Russia. The last talks were held when delegations met in Istanbul on June 2.
Ukraine continues to offer a ceasefire and support US-led diplomatic efforts to stop the fighting.
Pictured: Putin speaks with Bahrain officials at St Petersburg economic conference
20:00 , Daniel KeaneRussian President Vladimir Putin spoke with the National Security Advisor and Commander of the Royal Guard for the Kingdom of Bahrain, Nasser bin Hamad Al Khalifa, on the sidelines of the 28th Saint Petersburg International Economic Forum.
One dead after Russian drones slam into two Ukrainian cities
19:00 , Daniel KeaneRussian drones slammed into two Ukrainian cities, killing at least one person in nighttime attacks, authorities said on Friday.
Russia's overnight drone assault targeted the southern Ukraine port city of Odesa and the northeastern city of Kharkiv, hitting apartment blocks, officials said.
The barrage of more than 20 drones injured almost two dozen civilians, including girls aged 17 and 12, Ukraine’s President Volodymyr Zelenskyy said.
Putin boasts about Russia's economy despite 'recession' warning
18:00 , Daniel KeanePresident Vladimir Putin on Friday hailed Russia's economic outlook, saying it has managed to curb inflation and ease its reliance on energy exports.
It came despite the Russian leader’s own economy minister claiming on Thursday that Russia was on the verge of recession.
Speaking at the St. Petersburg International Economic Forum, he said: "The perception of Russian economy as based on raw materials and dependent on hydrocarbons exports have clearly become outdated," Putin said.
He added that the economy grew by 1.5% in the first four months of 2025 and inflation has dropped from double digits to 9.6%.
Trump isn’t just burning his MAGA coalition over Iran — he’s inspiring a new one to rise against him
17:00 , Tom Watling
Trump isn’t just burning his MAGA coalition over Iran he’s inspiring a new one
In pictures: Russia's drone attack on Odesa
16:00 , Tom WatlingWe have some more pictures showing Russia’s latest overnight attack on the Ukrainian port city of Odesa.
Russia's economy minister says the country is on the brink of recession
15:00 , Tom WatlingRussia's economy is “on the brink of going into a recession,” the country's economy minister said Thursday, according to Russian media reports.
Economy Minister Maxim Reshetnikov delivered the warning at the St. Petersburg International Economic Forum, the annual event in Russia's second largest city designed to highlight the country's economic prowess and court foreign investors.
Russia's economy minister says the country is on the brink of recession
Ukrainian refugee’s life shattered again by Iran-Israel conflict
14:00 , Tom WatlingTetiana Kurakova believed she had left the devastation of war behind when she fled Ukraine in 2022, escaping the gaping holes in buildings, streets choked with rubble, and the pervasive fear of airstrikes.
The 40-year-old makeup artist had painstakingly rebuilt her life in the Israeli coastal city of Bat Yam, aided by friends who helped her relaunch her career.
Ukrainian refugee’s life shattered again by Iran-Israel conflict
Zelensky calls for 'strong response' against Russia after latest attacks
13:00 , Tom WatlingUkrainian president Volodymyr Zelensky has renewed calls for Kyiv’s western supporters to issue a “strong response” against Russia following its latest aerial attacks.
“Russia continues its tactics of deliberate terror against our people. And it is precisely for this that it must face a strong response – one that will significantly impact Russia as a whole and its ability to continue the war,” he wrote on X.
“The G7 countries and the EU know the recipe: strong pressure, sanctions targeting the energy sector and the shadow fleet, and a $30 price cap on Russian oil. The sooner the sick minds in the Kremlin lose the ability to finance the war, the more lives we will be able to save in Ukraine.”
You can see his full statement below.
Last night, the Russians launched massive attacks on Odesa, Kharkiv, and their outskirts using more than twenty strike drones. Around 20 people were injured, including 2 children – girls aged 12 and 17 – and 3 State Emergency Service workers who had arrived at the scene of the… pic.twitter.com/XlH1lU1Uhf
— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) June 20, 2025
As Putin ramps up his summer offensive in Ukraine, will he succeed?
12:00 , Tom Watling
As Putin ramps up his summer offensive in Ukraine, will he succeed?
Spain rejects NATO’s anticipated defense spending increase as 'unreasonable'
11:34 , Tom WatlingSpain has rejected a Nato proposal to spend 5% of GDP on defense needs that’s due to be announced next week, calling it “unreasonable.”
In a letter sent Thursday to NATO Secretary-General Mark Rutte, Spanish Prime Minister Pedro Sánchez said that Spain “cannot commit to a specific spending target in terms of GDP” at next week’s Nato summit in The Hague.
Most US allies at Nato are on track to endorse Donald Trump’s demand that they invest 5% of gross domestic product on their defense and military needs. In early June, Sweden and the Netherlands said that they aim to meet the new target.
Spain rejects NATO’s anticipated defense spending increase as 'unreasonable'
In pictures: Odesa residents see aftermath of Russian attacks
11:00 , Tom Watling
Norway to meet 5% NATO goal on defence, security spending, prime minister says
10:31 , Tom WatlingNorway plans to raise its defence spending to 3.5% of the country's GDP, and also aims to use an additional 1.5% for broader security related purposes, its prime minister said on Friday, in line with a planned common goal among Nato states.
Nato chief Mark Rutte has proposed that member nations should agree at a June 24-25 meeting in The Hague to aim for spending of a total of 5% of their gross domestic product on defence and broader security measures.
“We must do more to secure our country and contribute to our common security with our allies in Nato,” Prime Minister Jonas Gahr Stoere told a press conference on Friday.
The 3.5% spending includes Norway's financial support to Ukraine's military defence, he said.
Norway in 2024 spent an estimated 2.2% of GDP on defence, up from a low of 1.4% in 2022, the national statistics agency (SSB) said in April, and the government said in May it aims to spend 3.3% in 2025.
North Korea will send 5,000 military construction workers to Russia, Kremlin says
10:00 , Tom WatlingNorth Korea is sending 5,000 military construction workers and 1,000 sappers to Russia’s Kursk oblast, where Moscow is repairing widespread damage from a Ukrainian incursion, according to a top Kremlin official.
Presidential security adviser Sergei Shoigu said the workers would help rebuild the strategic border region, which was invaded by the Ukrainian military last August and retaken by Russian forces earlier this year.
The dispatch of the workers was discussed in Mr Shoigu’s meeting with North Korean leader Kim Jong Un, state media outlet KCNA reported on Wednesday.
North Korea will send 5,000 military construction workers to Russia, says Kremlin
In pictures: Russia launches drone attacks at Kharkiv
09:24 , Tom WatlingEarlier, we reported that six people had been wounded, including a 12-year-old, in the northeast Ukrainian region of Kharkiv.
Below, you can see some pictures of the aftermath of those attacks.
Tried and tested in war: For European drone manufacturers, Ukraine is the place to be
09:00 , Tom WatlingAbout once a month, French drone manufacturer Henri Seydoux makes what has become a necessary pilgrimage for many in his business — he goes to Ukraine.
Because for drone technology, there is no harder place to survive than the frontlines of the war against Russia’s invasion, where both sides are using unmanned aerial machines of all shapes and sizes to kill and to observe, reshaping modern warfare.
Tried and tested in war: For European drone manufacturers, Ukraine is the place to be
At least six people, including 12-year-old, injured in Ukraine's Kharkiv
08:38While footage continues to come out from Ukraine’s port city of Odesa following a large Russian drone attack, we bring you news from Kharkiv, where there have been additional casualties.
The northeastern Ukrainian region, which borders Russia, is one of the most frequently bombed areas of the country. Its eponymously named capital is also home to some 1.3 million Ukrainians, making it the second largest city in the country behind Kyiv.
Local officials said Russia launched at least eight strikes overnight on the region, injuring three people, including a 12-year-old and 17-year-old girl, in the city. At least six apartment blocks were damaged.
Another three people were injured in villages outside the city but within the region.
Olena Zelenska: Russia is turning our nights into a nightmare
08:19 , Tom WatlingOlena Zelenska, the wife of Ukrainian president Volodymyr Zelensky, has accused Russia of “turning our nights into nightmares” with the latest aerial attacks.
Russia has ramped up its assaults on Ukraine in recent weeks, even as Vladimir Putin has repeated claims he is interested in ending the war.
Moscow says it is only striking military targets but footage last night showed civilians fleeing a residential apartment block after drones damaged the property and caused fires.
“Russia is deliberately turning each of our nights into a nightmare, trying to break our spirit. But Ukraine will persevere,” Ms Zelenska wrote on X.
“The future belongs to those who save, rebuild, and never give up.”
Odesa and the Kharkiv region endured another terrifying night: drone attacks, explosions, fires, and, tragically, injured and killed civilians. Russia is deliberately turning each of our nights into a nightmare, trying to break our spirit. But Ukraine will persevere. The future…
— Olena Zelenska / Олена Зеленська (@ZelenskaUA) June 20, 2025
Putin sends warning to Germany over Ukraine supplies: ‘Serious damage’
08:03 , Tom WatlingMapped: Russia's invasion of Ukraine
07:48 , Tom WatlingBelow we have a map of the frontline in Ukraine after more than three years of Russia’s full-scale invasion.
Russia downs two drones that tried to attack Moscow, mayor says
07:37 , Tom WatlingMoscow mayor Sergei Sobyanin said on Friday that air defence systems had downed two drones en route to Russia's capital.
He posted twice on Telegram, first at 4.55am GMT and secondly at 6.07am, claiming two separate attacks.
He said emergency services were working at the site of the fallen debris.
Earlier, Moscow’s defence ministry claimed that Ukraine fired 61 drones at targets across Russia overnight.
In pictures: Russian drone attack hits high-rise in Odesa
07:31 , Tom WatlingEarlier, we told that you an overnight Russian drone attack on the Ukrainian port city of Odesa had killed at least one person and left 14 more wounded.
The Russian attack hit several high-rise apartment blocks, setting them on fire.
Below, you can see pictures from the scene.
Russia fires 86 drones at Ukraine overnight
07:20 , Tom WatlingUkraine's air force said on Friday that Russia had launched 86 drones on Ukraine overnight.
The military noted its air defence units shot down 34 drones while another 36 drones were lost - in reference to the Ukrainian military using electronic warfare to redirect them - or they were drone simulators that did not carry warheads.
However, the military reported that drones hit 8 locations.
One killed, 14 injured in overnight Russian attack on Ukraine's Odesa
07:15 , Tom WatlingOne person was killed and at least 14 were injured when Russian drones attacked the Ukrainian Black Sea city of Odesa overnight, damaging high-rise buildings and railway infrastructure, local authorities and prosecutors said on Friday.
Odesa is Ukraine's largest Black Sea port, key for imports and exports, and has been under constant missile and drone attacks by Russia since the war began.
“Despite the active work of air defence forces, there is damage to civilian infrastructure, including residential buildings, a higher education institution, a gas pipeline and private cars,” local governor Oleh Kiper said on Telegram messenger.
Kiper released photos of burning houses and charred high-rise buildings.
Local emergencies service said that during the attack there were at least 10 drone strikes on residential buildings, causing massive fires.
Ukrainian state railways Ukrzaliznytsia reported that Odesa railway station was damaged during the attack, with power wires and rails damaged.
Russian drones also attacked Kharkiv in northeastern Ukraine overnight, damaging several private and multi-storey houses, Kharkiv officials said.
The strategy of delay—more warnings, more time, more hesitation—has only emboldened the Kremlin. A gift for all of Russia’s global ambitions.
— Yulia Svyrydenko (@Svyrydenko_Y) June 20, 2025
Last night, Russians slammed drones into residential buildings across the country. Heavily populated, civilian areas. In Odesa alone, 14… pic.twitter.com/zfeiYCHPTG
Russia issues 'Chernobyl-style catastrophe' warning for ally Iran's nuclear plant: 'Beyond evil'
07:08 , Arpan RaiThe head of Russia's nuclear energy corporation has warned that an Israeli attack on Iran's Bushehr nuclear power plant could lead to a "Chernobyl-style catastrophe".
Bushehr is Iran's only operating nuclear power plant and was built by Russia.
The head of Russia's state nuclear corporation Rosatom, Alexei Likhachev, warned that the situation around the plant was fraught with risk.
"If there is a strike on the operational first power unit, it will be a catastrophe comparable to Chernobyl," the state RIA news agency cited Mr Likhachev as saying.
He was referring to the world's worst nuclear disaster in 1986, when a reactor exploded at Chernobyl in Soviet Ukraine.
An attack on Bushehr would be "beyond... evil," Mr Likhachev added.
An Israeli military spokesperson said Israel had struck the site, but an Israeli military official later called this statement "a mistake" and said he could neither confirm nor deny that the Bushehr site on the cost of the Gulf had been hit.
Additionally, Russian president Vladimir Putin told journalists in the early hours yesterday that Israel had promised Russia that Moscow's workers – who are building more nuclear facilities at the Bushehr site - would be safe, even as Israel tries to degrade Iran's nuclear capabilities by force.
Ukraine and Russia exchange more prisoners of war in latest swap
06:45 , Arpan RaiUkraine and Russia exchanged prisoners of war, officials from both countries said, the latest round of swaps under an agreement struck in Istanbul.
President Volodymyr Zelensky posted images of the freed Ukrainian troops, smiling and draped in the national flag, most of whom had been held captive since the early months of Russia's February 2022 invasion, he said.
The Ukrainian POWs exchanged yesterday were either sick or injured, according to Kyiv's coordinating council for POWs. The Russian POWs would also be sent for treatment and rehabilitation, Moscow's defence ministry said.
Neither Ukraine nor Russia, whose talks on ending the war have yielded few results besides the exchange of prisoners or remains, provided an exact figure of how many POWs had been exchanged.
Our people are returning home from Russian captivity. These are warriors of the Armed Forces, the National Guard, and the State Border Guard Service. Most of them had been held captive since 2022.
— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) June 19, 2025
They are defenders of Ukraine who fought in the Donetsk, Zaporizhzhia, Luhansk,… pic.twitter.com/c4Xc8iHbr7
Watch: Russia's defence of Iran shows need to tighten sanctions, says Zelensky
06:40 , Arpan RaiNorth Korea will send 5,000 military construction workers to Russia, Kremlin says
06:17 , Arpan RaiNorth Korea is sending 5,000 military construction workers and 1,000 sappers to Russia’s Kursk oblast, where Moscow is repairing widespread damage from a Ukrainian incursion, according to a top Kremlin official.
Presidential security adviser Sergei Shoigu said the workers would help rebuild the strategic border region, which was invaded by the Ukrainian military last August and retaken by Russian forces earlier this year.
The dispatch of the workers was discussed in Mr Shoigu’s meeting with North Korean leader Kim Jong Un, state media outlet KCNA reported on Wednesday.
North Korea will send 5,000 military construction workers to Russia, says Kremlin
Russia claims South Africa invited Putin to G20 summit
06:15 , Arpan RaiSouth Africa formally invited Russian President Vladimir Putin to attend the G20 summit, a Russian diplomat has claimed.
"Last week, we received an official invitation. This is an appeal from the head of state, the president of South Africa (Cyril Ramaphosa), to his colleagues," Russian Ambassador-at-large Marat Berdyev told state-owned media outlet RIA.
The summit will take place in Johannesburg from November 22 to 23.
However, South Africa is a member of the International Criminal Court (ICC), meaning it is obliged to arrest Mr Putin on arrival. An arrest warrant was issued for the Russian leader in March 2023 over allegations of illegal deportation of Ukrainian children during Russia’s invasion of Ukraine.
Spain rejects Nato defence spending increase
06:05 , Arpan RaiSpain has rejected a Nato proposal to spend 5 per cent of GDP on defence needs set to be unveiled next week, claiming it is "unreasonable."
In a letter sent yesterday to Nato secretary-general Mark Rutte, Spanish prime minister Pedro Sanchez said that Spain "cannot commit to a specific spending target in terms of GDP".
His comments reveal divisions in the bloc ahead next week's Nato summit in The Hague.
"For Spain, committing to a 5 per cent target would not only be unreasonable, but also counterproductive, as it would move Spain away from optimal spending and it would hinder the EU's ongoing efforts to strengthen its security and defence ecosystem," Mr Sanchez wrote in the letter seen by The Associated Press.
Ukraine's nuclear plant cannot restart during war, says UN nuclear watchdog
05:52 , Arpan RaiThe Zaporizhzhia nuclear power plant in Ukraine cannot resume operations until challenges related to the availability of cooling water and off-site power are fully resolved, the International Atomic Energy Agency (IAEA) has said.
"Based on the discussions at the site this week, it is clear that there is a general consensus among all parties that the Zaporizhzhia Nuclear Power Plant cannot start operating again as long as this large-scale war continues," the UN nuclear watchdog said in a statement.
Zaporizhzhia nuclear plant, Europe’s largest nuclear power plant (NPP) situated in Ukraine’s east, has not been generating electricity for almost three years now, and its location on the frontline of the conflict continues to put nuclear safety in constant jeopardy, the IAEA said.
“Its off-site power situation also remains extremely fragile, with only one power line currently functioning compared with ten before the conflict. In addition, the destruction of the Kakhovka dam in mid-2023 means the ZNPP does not have sufficient water to cool six operating reactors,” the statement yesterday added.
German general dismisses Putin's Taurus warnings as 'nonsense'
05:36 , Arpan RaiA German general dismissed repeated warnings by Russian president Vladimir Putin that delivering Taurus cruise missiles to Ukraine might make it party to the war as “nonsense”.
"It is obviously nonsense and not correct that military aid - and this discussion has been going on for three years now - would constitute direct participation in the war," Major-General Christian Freuding, who is in charge of coordinating German military aid to Kyiv, told public broadcaster ZDF.
Putin-Trump meeting 'not currently on the table', Kremlin says
05:30 , Arpan RaiA meeting between Vladimir Putin and Donald Trump is not currently on the table, the Kremlin has said.
"Until the necessary 'homework' is done to remove the irritants in our relations with the United States, it makes no sense to organize a meeting," Kremlin spokesperson Dmitry Peskov said.
The US President has repeatedly raised the issue of meeting with Mr Putin, saying it would help accelerate efforts to end the war in Ukraine. However, the pair have not met since he began his second presidency in January.
Zelensky to attend Nato summit in Hague - reports
05:08 , Arpan RaiVolodymyr Zelenskyy is scheduled to attend the Nato summit in The Hague later this month, according to reports.
A source in the Ukrainian presidency told AFP that Mr Zelensky would attend the summit, scheduled for June 24-25.
“The decision will be made on the eve of the summit. This is just the schedule,” the source said.
They described the meeting as “an opportunity to maintain support and promote a ceasefire”.
Zelensky announces new commander of Ukraine's land forces
04:54 , Arpan RaiUkrainian presiden Volodymyr Zelensky has appointed Hennadiy Shapovalov as commander of Ukraine's land forces, replacing a commander who resigned over a Russian strike on a training area.
Mr Shapovalov, whose appointment was announced in a presidential decree, had previously acted as a liaison at a Nato coordination centre in Germany. Before that, he has served as commander of the forces of the Operational Command South.
Mr Zelensky, speaking later in his nightly video address, said the incoming military chief’s experience in working with Nato would be put to good use in introducing changes in Ukraine’s forces.
"All this useful experience of this coordination and all the real combat experience of our soldiers must be applied now within Ukraine’s land forces," he said.
"Changes are needed and this is an imperative."
Mr Shapovalov takes over as head of land forces from Mykhailo Drapatyi, who tendered his resignation this month after a deadly Russian strike on a training camp in southeastern Ukraine.
Mr Zelensky reassigned Drapatyi to the post of commander of the joint forces as part of a military shakeup.
Russia's defence of Iran shows need to tighten sanctions, says Zelensky
04:41 , Arpan RaiRussia's defence of Iran's authorities underscored the need for intensified sanctions against Moscow, Ukrainian president Volodymyr Zelensky said.
Mr Zelensky said Russia's deployment of Iranian-designed Shahed drones and North Korean munitions was proof that Kyiv's allies were applying insufficient pressure against Moscow.
"Now Russia is trying to save the Iranian nuclear programme. There cannot be any other possible explanation for their public signals and their non-public activity on this," the war-time president said in his nightly video address.
"When one of their accomplices loses their capability to export war, Russia is weakened and tries to interfere. This is so cynical and proves time and again that aggressive regimes cannot be allowed to unite and become partners,” he said.
When Russia deploys weaponry from Tehran and Pyongyang, Mr Zelensky said, "it is a clear sign that global solidarity and global pressure are not strong enough."
This morning, I visited the site where a Russian missile struck a residential building in Kyiv. The missile went through every floor, all the way down to the basement. It was deliberate terror, the same thing Russia’s army under Putin has done everywhere, from Chechnya to Syria.… pic.twitter.com/Kx709YIQ7y
— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) June 19, 2025
Russian envoy to UK accidentally admits massive battlefield losses
04:20 , Arpan RaiRussian ambassador to the UK has accidentally confirmed Russia’s massive losses on the battlefield.
The ambassador Andrey Kelin, talking to the CNN, dismissed the one million casualties figure but said that "about 600,000" Russian soldiers were fighting in Ukraine
The figues also tallies with Ukrainian estimates from January.
Mr Kelin then answered a question on Russian army recruitment.
"I'm not a specialist in this area, but as I understand it we have 50-60,000 a month, those volunteers who are coming, recruiting, posting, and they would like to get engaged in this thing (in Ukraine)," he said.
'Russia on the verge of recession,' Putin's economy minister warns
04:07 , Arpan RaiRussian economy is likely to face recession soon, the country’s economy minister said yesterday.
Russia is hosting the St Petersburg International Economic Forum for the fourth time since invading Ukraine in February 2022, an offensive that precipitated sweeping Western sanctions on Moscow and a widespread corporate exodus from the country.
The economy minister Maxim Reshetnikov said Russia's economy on the verge of recession, but claimed there is domestic money to spend after two years of elevated defence spending fuelled growth.
"The real question is: where are the investors?" said one Russian participant of the forum who spoke on condition of anonymity.
Sergei Aleksashenko, a former deputy governor of Russia's central bank now living abroad, said few serious businesses would consider Russia as an investment destination even if the war were to end tomorrow.
"Everyone can clearly see the situation with property rights is getting worse every day," Mr Aleksashenko told Reuters.
"Stopping the war itself does not significantly reduce the level of political risks," Mr Aleksashenko said, pointing to market risks as well.
