Two reasons for Russia's economic decline.
The decline in the Russian economy can be attributed to two main reasons: a labor shortage and slow technological innovation.
According to RIA Novosti, the slowdown in the Russian economy during the first few months of the year is attracting considerable public attention. Maxim Oreshkin, Deputy Chief of Staff to the Russian President, recently confirmed the real factors hindering growth, while simultaneously refuting previous speculation about the impact of internet censorship.
According to Deputy Chief of Staff to the President Maxim Oreshkin, the slowdown in Russia's economic growth stems primarily from a labor shortage and a slow pace of technology adoption. The official asserted that the cause lies entirely unrelated to cyber restrictions.
RIA Novosti quoted Oreshkin as emphasizing that the negative impacts on the economy earlier this year stemmed from macroeconomic factors that carried far more weight than controlling the internet. Among these, the shortage of personnel played a dominant role.
"The figures reflecting the negative impact of the economic downturn have nothing to do with the internet. There are other, far more important factors directly impacting the economy," Oreshkin explained when asked about the impact of global network barriers on economic growth.
The Deputy Chief of Staff of the Russian President stated that the current economic picture remains complex. Besides labor shortages, he also pointed out a general lack of resources. In particular, the slow pace of economic restructuring and the lag in the deployment of new technologies are hindering the recovery process.
According to data from the Ministry of Economic Development, Russia's GDP in February 2026 decreased by 1.5% compared to the same period last year. Prior to that, the decrease in January was recorded at 2.1%. The agency explained that this development was largely influenced by the time factor (the number of working days in the month).
Faced with this reality, Russian President Vladimir Putin has instructed the government to urgently prepare additional intervention measures. The ultimate goal is to re-establish economic growth and provide maximum support to the business community to overcome difficulties.
Minister of Economic Development Maxim Reshetnikov once stated that the internal resources for economic growth are largely declining. Therefore, businesses are compelled to adapt flexibly to new conditions and circumstances.
Despite facing numerous challenges, the economic picture still has some bright spots. At the end of April, the Governor of the Central Bank of Russia (CBR), Elvira Nabiullina, delivered a positive signal, announcing the return of growth to the domestic market during this spring.
