From collapse fears to resilience: How Russia reshaped its economy by the end of 2025

December 31, 2025

TL;DR

Russia's economy has shown resilience since 2022, with GDP growing over 4% annually and unemployment falling to a historic low of 2.2%.
State-owned enterprises like Rostec and Rosatom have seen significant revenue and profit increases.
Foreign trade has shifted eastward, with China, India, and Central Asian countries becoming major partners.
Import substitution policies have reduced import volumes by approximately 22% since 2021, with notable success in low- and medium-tech sectors.
The Russian ruble has strengthened significantly against the US dollar in 2025, attributed to reduced demand for foreign currency and strict monetary policy.
Investment activity has slowed due to stringent monetary policy, high capital costs, and fiscal pressures, although growth remains positive.
The labor market is tight, with historically low unemployment but a severe shortage of skilled labor.
Despite sanctions, foreign companies, particularly from China, continue to enter the Russian market.

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