Still, he and others see reasons for concern, and that’s because Russia appears to have entered a period of stagnation.
Its inflation rate was 9.9%, external in the year to April, partly due to Western sanctions pushing up the price of imports, but also because of worker shortages which have driven up wages.
The country lacked around 2.6 million workers, external at the end of 2024, according to Russia’s Higher School of Economics, largely due to men going to war or fleeing abroad to avoid it.
The central bank put interest rates up to record levels this year to try and tame the rising prices – but it’s making it more costly for companies to raise the capital they need to invest.
Meanwhile, Russia’s oil and gas revenues have fallen due to sanctions and weaker pricing, and were down by 35% year-on-year in May, external, according to official figures.
It has contributed to a widening budget shortfall, external that has left the country with less to spend on infrastructure and public services.
“They have this large pot of expenditure for the military that can’t be touched,” says András Tóth-Czifra, a political analyst and Russia watcher. “So it means money is starting to be reallocated from vital investment projects in road, rail and utilities.
“The quality of provision is really suffering.”
Russia may have coped better than expected with Western sanctions, but they continue to drag on the economy, he adds.