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Sberbank CEO Gref warns of Russian recession if rates not slashed
- At the Eastern Economic Forum on Wednesday, German Gref, the head of Sberbank, stated that Russia's economy experienced technical stagnation during the second quarter of 2025.
- This stagnation follows tighter monetary policy, with the key rate raised to 21% in September 2024 and later lowered to 18%, amid cooling economic activity.
- Gref noted oil and gas revenues fell for a fourth consecutive month in August to 505 billion rubles, down 36% from July and the lowest since mid-2025.
- He warned growth is nearing zero and said a rate of 12% or lower is needed for recovery, but current plans predict a 14% rate by year-end will be insufficient.
- Economic Minister Reshetnikov confirmed faster-than-expected cooling, and Finance Ministry data showed a budget deficit of 4.88 trillion rubles by July, exceeding full-year targets.
23 Articles
23 Articles
Vladimir Putin continues to be under pressure in his home country. According to experts, the Russian economy threatens to collapse. Now Sberbank head German Gref, an ally of the Kremlin chief, also refers to an alarming development.
The Russian economy slipped into “technical stagnation” in the second quarter of this year, Sberbank CEO German Gref said. Speaking at an economic forum in Vladivostok on Thursday, he repeated his earlier warnings that the Russian central bank’s tight monetary policy could plunge the country into recession.
Russia's economy entered the stage of "technical stagnation" in the second quarter of 2025, and if there is to be a recovery, a substantial reduction in the key rate is required.
The economy of Russia in technical stagnation . To affirm it the managing director of the largest banking group of the country (and of Europe...
Sberbank CEO Gref warns of Russian recession if rates not slashed
Sberbank CEO German Gref, one of Russia's most powerful bankers, warned on Thursday that the economy was stagnating and that unless the central bank slashed interest rates then the country would fall into recession.
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