During the St. Petersburg International Economic Forum, Russia's Economy Minister Maxim Reshetnikov cautioned that the country is on the verge of entering a recession. Despite the economy's resilience following sanctions imposed after the conflict in Ukraine, concerns remain about long-term sustainability.

Reshetnikov highlighted that current indicators suggest a cooling economy, with businesses feeling the impact. The surge in defense spending has boosted growth and kept unemployment low, but inflation and limited foreign investments pose significant risks.

While measures like increased wages and benefits for military personnel have provided short-term relief, economists fear a stagnation in sectors beyond defense. The government's decisions moving forward will play a crucial role in determining whether Russia slides into a recession.

Finance Minister Anton Siluanov and Central Bank Gov. Elvira Nabiullina offered contrasting views, with Siluanov optimistic about a potential rebound and Nabiullina suggesting the economy is readjusting from a period of overheating.