Russia's economy headed for collapse under war and sanctions, report finds
Photo: War and sanctions are driving the Russian economy to collapse (Getty Images)
Russian statistics authorities have officially recorded a decline in industrial production in the country in November 2025.
This was reported by the press service of the Center for Countering Disinformation (CPD) of Ukraine's National Security and Defense Council.
According to the CPD, the biggest declines were seen in tractor production, which fell more than 61%; bulldozers, nearly 54%; passenger railcars, 50%; elevators, over 37%; and automobile manufacturing, which dropped by more than 34%.
The statistical data were released shortly after Russian dictator Vladimir Putin’s "direct line," where he once again tried to convince Russians that the economy is "doing great" despite the war and sanctions, claiming that some slowdown in growth rates is a deliberate step by the government to maintain “economic quality.”
"In reality, the situation in Russia is increasingly compared to the crisis of the 1990s, as household incomes are falling while the fiscal burden due to the war is rising," the CPD noted.
The Center emphasized that despite all of Putin’s efforts to hide the true state of affairs, even official Russian statistics contradict his claims. Sanctions and the enormous funds the Kremlin must spend to continue the war are steadily pushing the Russian economy toward collapse.
Earlier reports indicated that Russia is facing serious economic difficulties due to the war in Ukraine, and the situation could worsen significantly in 2026.
However, this is unlikely to force Russian dictator Vladimir Putin to come to the negotiating table.