Russia's GDP growth rate has slowed significantly

Amid falling oil and gas revenues, Russia's real VAT revenues fell by 2.1% in the first half of 2025, despite a nominal increase of 7.3%. The 6.999 trillion rubles ($897 billion) collected do not cover the inflation rate (9.4%).

According to the Russian Ministry of Finance, by the end of the year the government should collect 15.456 trillion rubles in value-added tax ($1.97 trillion), but in the first half of the year only 45% of this plan was fulfilled.

In addition, the Russian state budget is also not fulfilling the plan for collecting other revenues, which indicates deep problems in the Russian economy.

Such dynamics, the CPA explained, are an indirect signal of a decline in economic activity in the country.

According to Rosstat, Russia's GDP growth rate has slowed significantly — to 1.2% compared to 4.1% in 2024.

Industrial growth also decreased by 2.5 times, to 1.8%. Retail turnover decreased by a factor of four.

The Central Bank of Russia previously reported a 43% reduction in state support for small and medium-sized businesses in the Russian Federation in the first quarter of 2025, from 127.8 to 72.3 billion rubles. The government also reduced preferential lending programs, which significantly complicated access to financing for businesses.

The Central Committee of the Red Cross emphasized that, despite systemic problems in the financial and economic sphere and the worsening social situation, the Kremlin is not changing its priorities, continuing the war.