November 13, 2026
The Russian economy recorded a slowdown in its growth rates during the third quarter of 2026, affected by the ongoing Ukrainian attacks that targeted industrial facilities and oil refineries, causing widespread disruptions in production and supply chains, as well as exacerbating inflationary pressures.
Data from the Russian Federal Statistics Authority showed that gross domestic product grew by 1% during the period from July to September, down from 1.3% recorded in the previous quarter, and achieving a level slightly higher than the expectations of economists surveyed by Bloomberg at 0.9%.
The attacks resulted in a decline in the production of Russian oil refineries by 18% on an annual basis during the third quarter, recording the largest quarterly decline since 2020, in addition to damage to shipping facilities and ports, which negatively affected the movement of exports.
In the same context, the Russian Central Bank warned that the continuation of drone attacks reduces production capabilities and exacerbates price pressures, which restricts its ability to take a decision to reduce interest rates.
This economic slowdown comes at a time when Moscow is raising its military spending again, amid a widening budget deficit and a slowdown in domestic consumption growth, which doubles the size of the challenges facing the Russian economy in light of the continuing war in Ukraine.
