MOSCOW – The Russian government has strongly rejected U.S. President Donald Trump’s claims that the country’s economy is on the brink of collapse, insisting that domestic energy supplies and economic stability remain secure despite Western sanctions and the ongoing war in Ukraine.

Trump, speaking on Tuesday, asserted that Russia’s economy was “going to collapse,” citing reports of “long lines waiting for gasoline” across the country. He urged President Vladimir Putin to end the conflict in Ukraine, claiming it was damaging Russia’s international reputation and economic outlook.

Novak Dismisses Talk of Fuel Shortages

Responding to the remarks at the Russian Energy Week forum in Moscow, Deputy Prime Minister Alexander Novak—a key figure overseeing Russia’s energy and economic sectors—dismissed concerns about widespread shortages.

“We have a stable domestic market supply, we see no problems in this regard,” Novak said.
“The balance is maintained between production and consumption, and we, on the part of the government and the relevant ministries, are doing everything to ensure that this remains the case.”

Novak’s comments come amid heightened global attention on Russia’s economic performance as Western sanctions, falling oil revenues, and the prolonged Ukraine conflict weigh on growth.

Economic Growth Slows as Sanctions Bite

Russia’s economy, while showing resilience in the face of unprecedented Western sanctions, has slowed considerably in 2025. The government expects GDP growth of around 1.0%, down from 4.3% in 2024 and 4.1% in 2023. The International Monetary Fund (IMF) recently cut its forecast for Russian GDP growth to 0.6%, reflecting weaker energy exports and high inflation pressures.

Although the Kremlin attributes the slowdown to efforts to “cool an overheated economy,” Western analysts argue that Russia’s growth model is faltering, with limited access to foreign technology and investment constraining long-term potential.

Fuel Shortages and Regional Supply Gaps

Earlier this year, parts of Russia experienced temporary gasoline shortages, particularly in remote regions. Analysts point to a combination of high domestic interest rates, which discouraged major retailers from stockpiling fuel, and Ukrainian drone strikes that damaged several oil refineries, cutting production capacity.

Despite these disruptions, the government quickly prioritized supplies to affected regions, easing most shortages. Officials now maintain that the domestic fuel market has stabilized.

Russia remains the world’s second-largest oil exporter, and energy sales continue to underpin much of the government’s revenue. However, price caps imposed by Western nations and reduced export volumes have forced Moscow to rely more heavily on trade with China, India, and other Asian partners.

Kremlin: Russia’s Economy Has Adapted to Sanctions

The Kremlin has repeatedly rejected Western assertions that its economy is weakening under sanctions, arguing that it has successfully restructured supply chains, expanded trade with non-Western nations, and boosted domestic production.

Officials insist that Russia’s economic slowdown is deliberate, aimed at maintaining balance and avoiding inflationary overheating rather than the result of structural weakness.

“No external power can force Russia to change course,” the Kremlin said in a statement earlier this week, adding that Western efforts to pressure Moscow economically have “only strengthened the country’s self-sufficiency.”

A Battle of Narratives Between Moscow and Washington

The exchange highlights the broader information and economic war between Russia and Western nations as the Ukraine conflict stretches into its fourth year.
While Washington and its allies contend that Russia’s financial system is under severe strain, Moscow argues that its economy has adapted and continues to perform better than expected given the scale of international sanctions.

Analysts note that Trump’s remarks could further intensify political tensions, as both nations attempt to frame the narrative of economic resilience versus decline.

Despite clear challenges, Russia’s government continues to emphasize energy stability, financial discipline, and economic sovereignty as key pillars of its policy moving into 2026.