Russia Shrinks - Joe Blogs

Russia’s economy has just delivered a major shock.

The latest data for early 2026 shows a 1.8% contraction — far worse than expected — triggering frustration inside the Kremlin and raising serious questions about the country’s economic outlook.

In this video, I break down what’s really happening behind the headlines.

We look at the collapse in oil and gas revenues, the growing budget deficit, and the increasing impact of sanctions — including the rising threat of secondary sanctions on countries like India and China, which had been key buyers of Russian oil.

We also discuss the huge build-up of oil sitting in tankers at sea, the risk of production cuts, and why this could have long-term consequences for Russia’s entire energy sector.

There has been a short-term boost from higher oil prices and a temporary easing of restrictions — but was that designed to help Russia, or to protect the global economy?

And most importantly… what happens next?

Because once these temporary measures are removed, the pressure could return — and potentially intensify.

This isn’t just about short-term numbers.

This could define the trajectory of the Russian economy for the rest of 2026.