Gorbachev's Economic Advisor Declared That The Russian Economy Is In A Recession

Abel Aganbegyan believes that Putin has built a “state-oligarchic capitalist system.”

The Russian economy is in its worst shape since the 2009 crisis, when the country's GDP contracted by 7.8% and unemployment reached 8%, said RBC Abel Aganbegyan, an economist, member of the Russian Academy of Sciences, and former economic adviser to Soviet leader Mikhail Gorbachev. According to him, the civilian sector of the economy “is in recession.” While Russia’s GDP grew by 4.3% in 2024, it increased by only 1% in 2025, Aganbegyan noted.

At the same time, according to official statistics, Russia’s GDP contracted by 0.2% in the first quarter of 2026. However, after President Putin reprimanded economic officials and demanded that the economy return to growth, Rosstat recorded a 1.3% increase in GDP for April–June. Aganbegyan described the current Russian economic model as “state-oligarchic capitalism” and emphasized that “the state’s share in Russia is very high—about 45 percent.” And when enterprises with private capital are taken into account, he believes this figure reaches 70%. In the banking sector, the state’s level of control is even higher—75%, the economist added.

Aganbegyan also stated that private business in the country is “constantly shrinking,” burdened by the costs of the war, an increased tax burden, and the high cost of credit resulting from the Central Bank’s high interest rates. “Companies are expanding, then going bankrupt; regions are afraid to let them go because that would lead to high unemployment, so they keep them afloat even if they’re unprofitable or barely breaking even,” Gorbachev’s advisor said, sharing his observations on economic trends.

Earlier, VEB.RF’s chief economist Andrei Klepach had spoken about the difficult situation facing the Russian economy.

You can support the website Charter97.org

MULTI-CURRENCY ACCOUNT FOR ASSISTANCE:

Bank's name: Bank Millennium S.A.
Address: ul. Stanislawa Zaryna, 2A, 02-593, Warszawa
IBAN: PL97116022020000000216711123
SWIFT: BIGBPLPW
Name of the account holder: Fundacja “KARTA ‘97”
Purpose/title of payment: Donation for statuary aims

You can contact us by the e-mail charter97@gmail.com