Putin says Russian economy contracted in January

The Russian economy contracted in the first month of the year, as the war in Ukraine was about to enter its fifth year, President Vladimir Putin told a cabinet meeting on Monday.

“In January this year, Russia’s gross domestic product (GDP) was 2.1% lower than a year ago,” Putin said.

He added that industrial production had declined by 0.8%, attributing this to more holidays in 2026 than in 2025, while calling on the government to come up with decisive measures to “return to the path of sustainable growth.”

Putin ordered his forces to invade Ukraine in February 2022, leading Western countries to impose sanctions on Russia. The switch to a war economy has long enabled Russia to maintain growth on the basis of state investments in armaments.

There were signs of crisis in the civilian economy last year, and the January figures now indicate that the defence sector is no longer able to compensate for this.