Russia Nears Recession, Putin Signals Talks With Ukraine

Russia's economy is on the brink of recession, as acknowledged by Economy Minister Maxim Reshetnikov at the St. Petersburg International Economic Forum. Reshetnikov cited waning business sentiment and economic indicators, with future prospects hinging on government decisions. The central bank recently eased interest rates after prior extreme hikes to fight persistent inflation, but most growth is confined to the defense sector, raising concerns about long-term sustainability. Economists warn of risks from high defense spending, labor shortages, Western sanctions, shrinking foreign investment, and potential depletion of liquid reserves by fall. Meanwhile, Russia and Ukraine have completed another exchange of captured soldiers, and President Putin has signaled a willingness to negotiate with Ukraine, though Western analysts remain skeptical of his intentions. Despite official optimism, many anticipate severe economic challenges ahead without decisive policy change.