Russia’s economy has been a sharp deceleration in recent months, and may be under additional pressures if oil prices and international market turmoil continues.

The Russian economy, fueled mainly by the costs of funding its three -year war in Ukraine, has run over 4% over the past two years, but in February growth. slowed in a weak 0.8%, on an annual basis, from 3% in January.

The rate of February is the lowest recorded since March 2023 and is mainly due to the reduction recorded in the sectors of transport, wholesale and mineral mining. The country’s industrial production fell to 0.2% from 2.2% before.

Meanwhile, lack of workforce in many other areas has caused a salaries-price spiral that has pushed inflation over 10%.

In response, the Central Bank increased its basic interest rate to 21%, the highest level since the early 2000s, prompting a strong reaction from businessmen who point out that it “drowns” investment.

Economists note that, although February had one day less than last year, the signs of deceleration are evident.

“The deterioration in an important part of the industrial sectors becomes persistent. The signs of deceleration prevail, “Raiffeisenbank analysts said in their analysis, referring to high interest rates, lack of labor, lack of productive capacity beyond the defensive sector and continuing pressure from western sanctions.

They estimate that the deceleration will deteriorate from falling oil pricewhich has reached the lowest level since April 2021 in fear that US President Donald Trump’s duty will cause a global recession.