Russia has faced economic turbulence caused by sanctions imposed after Putin's full-scale invasion of Ukraine that are aimed at choking Moscow's military machine. Strong GDP has been driven by high military spending amid predictions for harder times as inflation and high interest rates take their toll.

President Vladimir Putin said Russia plans to cut defense spending, acknowledging growing strains on the budget even as he insisted that reductions would depend on winning his war in Ukraine.

Economy Minister Maxim Reshetnikov said earlier during the St. Petersburg Economic Forum that the economy is “on the verge of going into a recession.”