• Russia's economy minister warns the country is on the brink of recession.
• Western sanctions and military spending are straining economic growth.
• President Putin urges officials to prevent a recession "under any circumstances."
• Inflation remains high, hovering around 9.6% despite rising wages.
• Foreign investment in Russia has significantly decreased since the Ukraine invasion.

At the St. Petersburg International Economic Forum, Russia's Economy Minister Maxim Reshetnikov warned that the country is "on the brink of going into a recession." He cited recent data indicating a worrying slowdown, characterizing the economy as "cooling" rather than rapidly expanding, which has prompted concern among government officials about potential stagnation amidst high inflation and increased military spending, according to Business Insider, India Times, and Los Angeles Times.

Reshetnikov noted that the consequences of war-related spending and Western sanctions have led to a significant economic imbalance, despite the government pushing for robust growth through military expenditure. President Vladimir Putin, while acknowledging the recession warnings, emphasized that such a downturn "must not be allowed" and called for a strategic approach to fiscal policy. His comments reflect a stark contrast between his optimism regarding manufacturing growth and the grim economic forecasts from his ministers, according to Newsweek and Channel News Asia.

Moreover, inflation has recently been reported at approximately 9.6%, having dropped from previous double digits, although factors such as military outlays and inadequate foreign investment continue to pressure the economy. Despite the significant military budget, experts caution that this reliance is unsustainable for comprehensive economic stability, which raises concerns for the long-term economic picture as the nation only recently posted its slowest quarterly growth since early 2023, according to Al Jazeera and Africa News.

Putin's government insists on maintaining robust growth through military expansion, yet the lack of diversified foreign investment and rampant inflation suggest a challenging road ahead. The President reiterated his commitment to balanced economic growth while stressing the importance of adaptable fiscal strategies to alleviate recession risks, reiterating on multiple occasions the vital role of stability in both military and civilian sectors of the economy, according to Dawn and Al Jazeera.