Economist: Russia Is One Step Away From Financial Explosion

• 11.06.2025, 12:50

The situation is out of the control of the authorities.

According to many economists, including Russian economists, Russia is already one step away from hyperinflation. Chairman of the Committee of Economists of Ukraine Andrey Novak during a chat on "Glavreda" answered what and when will trigger the explosion, as well as when prices in Russia will break through all possible ceilings.

"I would not say that the Russian authorities still control anything, especially in the economy. It can tell you that it's no big deal, that it's "healthy inflation," that Russia needs to cool the economy because it's overheated. Economists now take such words about the Russian economy with laughter," says the expert.

Andrei Novak said that today in many areas, very many commodity groups and groups of services, real inflation in Russia is no longer percentages or tens of percent - certain goods have gone up in price many times over the year.

"For example, look at how much potatoes, most fruits and vegetables, meat and dairy groups have gone up in price in Russia. Inflation of goods and services that most people use is considered to be in the tens of percent. And critical groups, such as medicines, have gone up in price many times over the year," the expert says.

Resuming, Novak points out that now it can hardly be said that the Russian authorities are still in control of anything.

"Hyperinflation for Russia is just a matter of time: whether it will start from the moment when the ruble exchange rate is released in Russia, or from the moment when they start printing money to cover the budget deficit, or from the moment when they start blocking Russians' accounts in the banking system," Novak says.