Putin responds with a famous quote by writer Mark Twain to explain what happens to Russia's economy after 3 years of war

Russian President Vladimir Putin rejected the statements on Friday that the Ukraine war destroys the economy of Russia, invoking continuous economic growth, reduced public debt and economic diversification as signs of resilience, although the leaders in the business environment expressed their concern about the state of the economy, informs Reuters.

Speaking during the closure session of the Economic Forum in St. Petersburg, Putin responded to the statement of a moderator according to which credible information and reports suggest that the war “destroys” the Russian economy. “As a well-known writer once said:” The rumors about my death are very exaggerated “, Putin reacted, quoting Mark Twain.

Putin said that 43% of Russia's GDP now has no connection with the energy or defense sectors, emphasizing the efforts to diversify the economy.

The three -day forum was marked by intense debates on the risks of economic stagnation. Inflation remains high, at 9.59% per year, more than the double of the 4% target of the Central Bank, but began to gradually decrease from the end of April, according to the Ministry of Economy.

In October last year, the Russian Bank increased the reference interest rate at the highest level since the early 2000s and until now to combat inflation. Earlier this month, it reduced the interest rate by a percentage point, up to 20%.

The Kremlin criticized this measure, considering it insufficient and warning that the economy could slow down too quickly after two years of war.

“Our most important task is to ensure the transition of the economy to a balanced growth trajectory,” Putin said, in a programmatic discourse. He defined balanced growth as a moderate inflation, low unemployment and sustained economic dynamic.

“At the same time, some specialists and experts signal the risks of stagnation and even recession. This should not be allowed in any case,” Putin said.

In a more pessimistic tone, the Minister of Economy, Maxim Resetnikov, warned on Thursday that Russia is on the verge of a recession. He said that future monetary policy decisions will determine if the country will avoid a recession.

The governor of the Central Bank, Elvira Nabiullina, who drove the institution through multiple crises since 2013, has been criticized for the high interest rates and the volatility of the currency. It remains in office, benefiting from Putin's personal support.

For his part, Russian Deputy Prime Minister Alexander Novak said: “It is time to reduce the interest rate and start” warming “the economy.”

The demand for loans is weak, the German GREF, the executive director of the largest creditor in Russia, Sberbank announced, announced and has requested the faster interest rate.

“It is particularly worrying that we, the largest bank, which finances almost 60% of all the investment projects in the country, did not finance any new projects since the beginning of the year,” said GREF on Friday.

Alexey Mordașov, a majority shareholder of the severstal steel manufacturer, warned of an imminent crisis of loans and increasing the number of bankruptcy. He mentioned that steel consumption decreased by 14% in the first five months of 2025, compared to the same period last year.

“This slowing down is a serious problem at this time,” Mordașov said. “The continuation of the current monetary policy could aggravate these negative consequences,” he said.