{
  "id": 19907289,
  "title": "War burden slows Russian economy despite oil-price boost",
  "url": "https://urgent.news/2026/11/14/war-burden-slows-russian-economy-despite-oil-price-boost",
  "topic": "world",
  "section": "World",
  "published": "2026-11-14T02:10:42.000Z",
  "source": {
    "name": "Malay Mail",
    "slug": "malay-mail-malaymail",
    "url": "https://www.malaymail.com/news/money/2026/11/14/war-burden-slows-russian-economy-despite-oil-price-boost/243190"
  },
  "original_language": "en",
  "account": "MOSCOW, Nov 14 — Russia's economic growth slowed to 1% in the third quarter, according to preliminary official data released yesterday. The growth, measured by the official statistics agency Rosstat, compared with the same period in the previous year. While this figure exceeded the initial forecast of 0.6% by the economy ministry, it was still lower than the 1.3% expansion seen in the second quarter of the year. The Russian economy contracted by 0.2% in the first quarter of the year, marking the country's first quarterly contraction in three years.\n\nThe Kremlin's heavy spending on the war in Ukraine initially boosted Russia's economic growth. However, this growth was hampered by subsequent inflation, labor shortages in non-military sectors, and a slump in private investment, which effectively hindered overall growth. Western sanctions and Russian actions against foreign firms also contributed to the slowdown in private investment and economic activity. Despite the surge in oil prices following the US-Iran war, which provided Russia with additional revenue for its petroleum exports, Ukrainian attacks on energy infrastructure forced the Kremlin to restrict exports to ensure domestic supply security.\n\nThe war has also strained Russia's government finances. Since the beginning of the offensive in 2022, Russia has consistently reported a budget deficit each year. As of the first 10 months of 2023, Russia's budget deficit amounted to 2.3% of GDP, as per finance ministry estimates published at the start of the week. Although the war did not initially burden ordinary Russians financially, the government raised the value added tax (VAT) rate by 2% this year. Nonetheless, Russia remains one of the world's lowest indebted developed countries, with debt amounting to around 19% of annual economic output in 2023, as per IMF estimates. Moscow also possesses a sovereign wealth fund valued at nearly $46 billion (RM188 billion) in liquid assets, and with a total worth of around $157 billion.",
  "summary": "MOSCOW, Nov 14 — Russia’s growth rate slowed to one per cent in the third quarter, preliminary official data...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}