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Russia Economy Lurched Into Contraction In April Amid Sanctions

  • GDP contracted 3% in April as restrictions hit, ministry says
  • Economy on track for deep recession even amid hints of respite
Shoppers at a grocery store in Khimki, Russia, on March 27. 

Shoppers at a grocery store in Khimki, Russia, on March 27. 

Photographer: Konstantin Zavrazhin/Getty Images
Updated on

The damage inflicted on Russia by sanctions was on full display in April as the economy swung into a contraction, with industrial production dropping and retail sales suffering their worst crash since the coronavirus pandemic.

Gross domestic product contracted 3% in April from a year earlier, according to an estimate by the Economy Ministry, after recording growth of 1.3% in March. The Ministry blamed the swing on “the unprecedented sanctions pressure,” which hit transport links and consumer demand.