Putin proposed restoring trade relations with the EU
Russian dictator Putin stated that Russia is ready for economic cooperation with the countries of the European Union if Brussels decides to resume interaction.
The statement was made during a conversation with journalists at a press conference in Bishkek, the capital of Kyrgyzstan.
According to Putin, any new economic contacts with the EU will not be a problem for Moscow, and the Russian side is openly inclined toward dialogue in the commercial and investment spheres. At the same time, the president did not specify the particular sectors or projects to which cooperation might apply, limiting himself to general formulations about readiness for partnership. Putin stated verbatim that Russia “has nothing against” possible joint projects and is ready to work with all interested parties.
This statement came as a surprise to the international community, since after Russia’s full-scale invasion of Ukraine, the European Union has constantly been pressuring Putin with sanctions and the economic isolation of Russia. Putin has repeatedly expressed readiness to restore commercial ties with the West, but these statements are generally perceived as political signals aimed at easing sanction pressure or improving Russia’s negotiating position on the international stage.
As a reminder, the State Duma of the Russian Federation approved a budget with military expenditures one and a half times larger than social spending.
The Russian budget, after two months of surplus, has again returned to deficit. In October, the Ministry of Finance spent 3.4 trillion rubles with revenues of 3 trillion. This led to an increase in the budget deficit from 3.8 to 4.2 trillion rubles for the first ten months.
The Russian economy is entering a phase of prolonged decline, as companies increasingly report financial difficulties, cut costs, and postpone investments. Based on the results of the third quarter of 2025, the main problems for businesses were non-payments by contractors, falling demand, and a lack of working capital.
Meanwhile, since the end of 2024, Russia’s annual economic growth fell from about 5% to zero. Among the reasons, analysts cite inflation, military spending, and declining oil prices against the backdrop of Trump’s tariffs.
After three years of unexpected economic growth, Russia is facing a sudden slowdown — war expenditures, inflation, and falling oil prices have begun to put pressure on an economy that until recently seemed resilient to sanctions.
