The Kremlin has stated that the economy is being sacrificed for the sake of stability

The Kremlin stated that the decline in the Russian economy is "expected" and is linked to measures aimed at ensuring stability.

This was reported by Kremlin spokesperson Dmitry Peskov.

According to him, the so-called “economic slowdown” is part of a policy to support macroeconomic stability, even though it is accompanied by a decline in economic indicators.

Peskov also stated that the government and the Russian president are working on solutions to reverse the negative trend and return to growth.

According to the Russian Ministry of Economic Development, Russia’s GDP contracted by 0.3% in January–March. This marks the first quarterly decline since the start of 2023.

Russia is seeing a trend toward staff reductions across various sectors, including IT, healthcare, logistics, manufacturing, retail, consulting, and other business services.

The Russian Ministry of Finance forecasts a sharp increase in regional budget deficits to $21 billion.