Putin finally admits Russia’s economy is in trouble and grasps for answers, after warnings about a financial crisis have been piling up

Russian President Vladimir Putin made his concerns about the economy public as he vented frustration at aides and demanded they come up with solutions.

During a televised meeting on the economy Wednesday, he revealed that GDP shrank by combined 1.8% in January and February, adding that manufacturing, industrial production and construction were negative.

“I expect to hear detailed reports today on the current economic situation and why the trajectory of macroeconomic indicators is currently below expectations,” Putin said. “Moreover, below the expectations of not only experts and analysts, but also the forecasts of the government itself and the central bank of Russia.”

The meeting was attended by Prime Minister Mikhail Mishustin, Kremlin Deputy Chief of Staff Maxim Oreshkin, First Deputy Prime Minister Denis Manturov, Deputy Prime Minister Alexander Novak, Central Bank Governor Elvira Nabiullina, and ​the CEO of PSB ​bank.

Russia’s economy had already been slowing down as Putin’s war on Ukraine continues to keep inflation high and the labor market tight.

An economic contraction would be the first since 2022, when Russia invaded Ukraine and was hit by Western sanctions that slashed energy exports.

Massive military spending helped GDP expand by 4.1% in 2023 and 4.9% in 2024. But weak oil revenue and deeper deficits forced Moscow to limit defense outlays. GDP grew by just 1% last year, and the Kremlin earlier predic...