Moscow – The leader of the Russian Communist Party, Gennady Zyuganov, warned yesterday, Thursday, of the risk of a new revolution in Russia if the economic situation is not addressed urgently. Zyuganov’s warning came during a regular session of the Duma (the lower chamber of the Russian Parliament), in which he spoke about Russian economic policy and described it as a “total failure.”
Zyuganov stressed that if the situation is not addressed urgently, a revolution similar to the “Revolution of 1917” may break out early this fall, referring to the Bolshevik Revolution that overthrew the provisional government following the collapse of the tsarist regime in Russia.
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The Communist Party leader added that the Communists warned the Moscow government and proposed measures to achieve stability, but to no avail. They repeatedly repeated that the economy was at risk of collapse. Zyuganov described the first quarter of 2026 as “a disaster by all standards.”
Big decline
At the beginning of this year, Russia’s economic growth slowed to 1% as an indication of an imminent economic recession, in light of high taxes, labor shortages, and a strict monetary policy, all while Russia maintains fourth place in the world in terms of purchasing power parity, according to statistics from the International Monetary Fund and the World Bank.
The purchasing power parity index is used to compare living standards and purchasing power between different countries, apart from simply looking at changing currency exchange rates.
While Russian economists previously used terms such as “negative balance” or “slowdown period,” and rarely described the economic situation as “bad” definitively, most observers’ descriptions now indicate that the Russian economy faces serious challenges.
Most economic analysts agree that the recovery recorded by the Russian economy in previous years has ended, and that the economy has reached its maximum capacity.
According to Russian official data, an annual contraction in GDP of 1.8% was recorded at the beginning of the year, and despite the Russian Central Bank’s strict policy, the inflation rate rose to 6% at the beginning of 2026.
Economists point out that there are inflationary risks associated with labor shortages and high tax burdens (for example, increasing the value-added tax to 22%).
Many observers also warn of a slowdown in investment activity due to a lack of resources and the high cost of borrowed capital, in addition to the risks of default, as specialized centers spoke of an increase in cases of corporate default in the first quarter of 2026, and attribute this to a long period of high interest rates.
Formal recognition
In a traditional meeting to discuss economic issues, Russian President Vladimir Putin acknowledged the decline in economic growth in the first quarter of the year, and directed the monetary authorities to submit proposals to restore growth and support companies.
However, the monetary authorities themselves do not seem particularly optimistic in their assessment of the economic situation. At the Comprehensive Russian Forum to Support Entrepreneurship Infrastructure held in the Leningrad Region, Russian Minister of Economic Development Maxim Reshetnikov stated that in light of the strong ruble, high interest rates, labor shortages and budget restrictions, the economy’s reserves have been largely exhausted, and the economic situation has become more difficult than in previous years.
The Russian minister continued that the economic system was dependent on several factors, namely savings, favorable market conditions, and exchange rate returns, but now, the margin of safety has noticeably diminished.
“Businesses are the most affected by this situation,” Minister Reshetnikov noted, adding that businessmen and traders are also forced to adapt to the tax changes.
Features of a deep crisis
Until recently, the Russian economy seemed to have learned how to deal with a wide range of shocks, says Russian economist Viktor Lashon. But today this confidence has been noticeably shaken, and for the first time in 3 years, the country is facing an economic recession.
In a statement to Al Jazeera Net, Lashon tends to believe that opportunities to stimulate economic activity will be limited, and the financial resources allocated for this will be less than expected, which means there is no additional money in the budget to support growth.
Moreover, the Russian economist points out that monetary policy will be too tight to help the economy recover from the slowdown, which may push it to risk sliding into a deep crisis.
He adds that by the end of the first quarter of this year, the data of which is expected to be released soon, the economy will show a contraction for the first time since 2023.
However, Victor Lashon considers that “what is most important is not the decline itself, but rather its nature. This is not an external shock that can be overcome, but rather the result of an accumulation of problems that have begun to gradually burden everyone.”
The Russian economist continues that, under these circumstances, the central bank is expected to do what is almost impossible, as the economy needs low-cost liquidity, while inflation remains a constant threat. He adds that lowering the interest rate is necessary, but doing so too quickly heralds a new round of price rises.
Living anxiety
Russian expert in sociology, Vladimir Kochel, spoke about the social dimension of the economic difficulties facing Russia, and said that concern about inflation dominates citizens, while interest in the problem of corruption – which was recently considered the main problem in Russia – fell to the bottom of the list.
Kushel explained in a statement to Al Jazeera Net that people are now worried about more realistic matters, for example, will they have enough money to live?
According to Vladimir Kochel, opinion polls indicate that there is a feeling of anxiety among the majority of citizens regarding the political and economic situation of the country, and that the income of these citizens will grow at a slower pace than the rise in the prices of food and other services.
According to the spokesman himself, these fears are not unfounded, as inflation in Russia has resumed its rise, and the consumer price index rose during last March and this April by 0.19%.
The Russian expert confirms that the situation has now turned upside down, as the economy has quickly moved from a state of “hyperactivity” to a state of “total stagnation,” and while companies are busy applying artificial intelligence, employees are drowning in useless workloads, as he described it.
