Investments in the economy have stopped growing, acknowledged Russian Deputy Prime Minister Aleksandr Novak in a discussion with senators: “The growth of investments in the first nine months of 2025 was 0.5%. For the whole year, it will most likely be zero or slightly above”.
In September, the Ministry of Economic Development of the Russian Federation forecasted a 1.7% increase in investments for 2025. However, shortly after, Rosstat recorded the first annual decline in investments in the last five years — a 3.1% decrease in the third quarter. The Ministry of Economic Development also anticipates a contraction for this year: minus 0.5%.
The main contribution to the reduction in investment activity came from transportation, construction — affected by the high key rate — and some extractive sub-sectors, especially the coal industry and the oil and gas sector, according to the Center for Development of the Higher School of Economics.
Furthermore, sectors related to the military-industrial complex and import substitution have managed to stay afloat: the production of “other means of transport” (especially special equipment), the chemical and pharmaceutical industries. However, with the reduction of state funding, investments are rapidly shrinking. The Center for Development cites the electronics industry as an example, which had previously increased its investments, but in the third quarter recorded a decline, due to the reduction of government subsidies, related to the authorities’ attempts to balance the budget.
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