Putin: Russia Must 'Walk the Razor’s Edge'

Russian President Vladimir Putin urged his cabinet to “walk a razor’s edge” in implementing anti-inflation measures while maintaining macroeconomic stability. He emphasized that the government must avoid overcooling the economy.

“We discussed the need to adopt measures to fight inflation and strengthen macroeconomic stability. The common view was that it is necessary to walk such a sharp edge—so as not to undermine macroeconomic policy, and not to overcool or freeze the economy,” Putin explained during an economic meeting.

Economic Growth Slows in 2025

According to Rosstat, Russia’s economic growth slowed to 1.2% in the first half of 2025. Analysts at the Center for Macroeconomic Analysis and Short-Term Forecasting had earlier warned of an impending recession.

Elvira Nabiullina, head of the Bank of Russia, stated that the slowdown was both inevitable and expected. She noted that last year the Russian economy overheated, growing at an unsustainable pace.

“The stronger the overheating, the more noticeable the slowdown will be,” Nabiullina concluded.