October 15, 2025, Moscow – Russia’s top economic official, Deputy Prime Minister Alexander Novak, has responded sharply to U.S. President Donald Trump’s recent comments about the state of Russia’s economy, rejecting claims that the country’s economic situation is on the brink of collapse.
Trump, speaking on Tuesday, warned that the Russian economy was nearing collapse due to the ongoing war in Ukraine, pointing to long lines for gasoline in various regions as a sign of Russia’s economic struggles. He urged President Vladimir Putin to settle the war, suggesting that the situation was making Russia appear weaker on the world stage.
In a response at the Russian Energy Week forum in Moscow, Novak dismissed the claims, stating that Russia’s domestic gasoline supply was stable and that the government was effectively managing production and consumption. “We have a stable domestic market supply, we see no problems in this regard,” Novak assured, emphasizing that the balance between production and consumption was being maintained, and efforts were in place to ensure it stayed that way.
Economic Slowdown and IMF Forecasts
Russia’s economy has indeed been slowing down this year, with the government forecasting 1.0% GDP growth in 2025, down from 4.3% in 2024 and 4.1% in 2023. The International Monetary Fund (IMF), in its latest report, downgraded Russia’s 2025 GDP forecast to just 0.6%, down from an earlier projection of 0.9%.
While the economy is showing signs of strain, particularly with the continuing impact of Western sanctions, Novak pointed to ongoing efforts by the Russian government to manage economic stability, especially in the energy sector. He acknowledged some regional gasoline shortages, which were caused by a combination of high interest rates deterring major retailers from purchasing gasoline during surplus months and Ukrainian drone attacks that damaged refinery infrastructure. However, Novak assured that the government had prioritized the regions facing shortages and that the overall situation was under control.
Economic Competition Between Russia and the West
As Russia and Ukraine continue their drone and artillery warfare for a fourth consecutive year, the state of Russia’s economy has become a focal point in the geopolitical struggle between Russia and Western-backed Ukraine. Western leaders argue that Russia’s economy, while resilient, is weaker than it appears and could crumble under further economic pressure. They suggest that the hardships imposed by sanctions and the ongoing war could eventually force the Kremlin to change its course in Ukraine.
On the other hand, the Kremlin maintains that the economic slowdown is by design, aimed at preventing an economic overheating, and that Russia has adapted well to the harshest sanctions ever imposed on a major global economy. The Russian government insists that no external pressure can compel it to alter its policies regarding Ukraine.
The debate over Russia’s economic stability is expected to continue as the war in Ukraine drags on, with the Kremlin’s long-term strategies and its ability to weather international sanctions under intense scrutiny.
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