On Camera: Vladimir Putin Clashes With Sberbank CEO Over State Of Russian Economy

At the Eastern Economic Forum on September 5, Russian President Vladimir Putin publicly sparred with Sberbank CEO German Gref after the banker warned that the country’s economy was sliding into “technical stagnation.” Gref highlighted that GDP growth nearly flatlined in July and August, following a sharp slowdown in the second quarter, which he described as “practically stagnation.” Putin responded by dismissing the claim and offering his own defense of Russia’s economic trajectory, remarks that drew laughter from the audience and have since gone viral. The exchange underscores a growing divide between the Kremlin and leading economists over the cost of sustaining the prolonged war in Ukraine. Official data shows Russia’s GDP grew just 1.1% year-on-year in April–June, down from 1.4% in the first quarter and well below 2024 growth levels. Analysts warn that while record military spending, peaking at 7.2% of GDP in 2025, the highest since the Cold War, has propped up output, it risks strangling broader economic stability.