Russia's economy is teetering on the edge of a recession, Russian Economy Minister Maxim Reshetnikov stated yesterday at the St. Petersburg International Economic Forum.

This month, Russia cut interest rates for the first time since 2022, lowering borrowing costs from 21% to 20%. However, businesses have been voicing complaints for months about the high interest rates stifling investment, and economic growth has started to slow.

"According to the data, there is a cooling trend, but all the figures refer to previous periods," Reshetnikov said.

"Based on the current business sentiment and economic indicators, it seems to me that we are already on the brink of a recession. On the brink," he added.

At the same forum, Russia's Central Bank Governor Elvira Nabiullina stated that the current slowdown in GDP growth is "a way out of overheating."

Alexander Vedyakhin, First Deputy CEO of Russia's largest bank, Sberbank, told Reuters this week that the country’s tight monetary policy poses a risk of excessive cooling. He added that significantly lower interest rates—between 12% and 14%—would be acceptable to restart investment lending.

According to Vedyakhin, "There is a risk that the economy may cool down excessively, preventing recovery, and future growth could remain weak."