The Russian authorities are artificially trying to keep the economy afloat and lying to their own people.
This was written on X (formerly Twitter) by Czech Foreign Minister Jan Lipavský.
“The Russian economy is sustained only by artificial stability, strict control, and wartime populism. Official data no longer reflect reality, and economic tensions will only increase as the war continues,” the diplomat wrote.
Russians face inflation, while state media openly lie to them. The seasonally adjusted annual inflation rate reached 4% in June 2025, but the real price increases for services, energy, and imports are much higher, Lipavský notes. The poor bear the main burden, while state media paint a picture of success.
“Typical Putinism. The Kremlin distorts reality and manipulates the public, a scenario we know well from the communist past,” wrote the Czech Foreign Minister.
The Kremlin is also lying to itself, he adds. Problematic loans in Russian banks have increased by 1.2% this year, with overall growth expected to reach 6–7% by 2026. Some banks are already calling for government assistance. The Kremlin claims the banking sector is stable, but instead of addressing losses, it is pushing financial institutions to restructure loans. Official data are just a facade to hide growing problems.
The more the Kremlin manipulates and lies, the stronger the effect will be. Lipavský calls European unity key, and the new package of sanctions a step in the right direction.
