Putin Urges Action as Russia Faces Economic Recession Threat

President Vladimir Putin issued a direct appeal to Russia's economic leaders on Friday, stressing the necessity of avoiding a recession. Speaking at an economic forum, Putin emphasized the importance of shifting the economy towards balanced growth, amidst efforts to control persistent high inflation.

The Bank of Russia recently raised its interest rates to curb inflation but faced criticism over the decision. The Kremlin argued the measures were insufficient as the economy risked cooling rapidly due to heavy defense spending during the Ukraine conflict. Central Bank Governor Elvira Nabiullina, under pressure, is urged to reduce rates to stimulate the economy.

Key business figures have expressed concerns over investment slowdown and rising bankruptcies, attributing them to high interest rates. Manufacturing leaders highlighted reduced steel consumption as an indicator of the cooling economy. Deputy Prime Minister Alexander Novak and Sberbank CEO German Gref both called for decisive rate cuts to invigorate economic activity.

(With inputs from agencies.)