Putin cautions against 'money printing' as president insists economy is not in recession

Russian President Vladimir Putin cautioned against uncontrolled “money printing” as Russia is trying to calm down inflation at the expense of growth.

The warning was accompanied by a claim that Moscow is intentionally slowing down the Russian economy in exchange for the ability to restrain prices.

Money printing brings inflation, Putin tells party leaders

Inflation will rise if the government yields to the temptation to “print and distribute money,” Putin said during a meeting with leaders of Russian parliamentary factions.

The president issued the warning about the consequences of inflating the ruble while commenting on a current proposal for a quarterly adjustment of pensions in the Russian Federation.

Discussing the upcoming preparation of the draft law on the country’s next budget, the Russian head of state emphasized:

“This is extremely important. Many temptations arise: for example, to print money and distribute it. What will be the result? Inflation!”

Attempts to improve conditions for certain groups of the population could have this outcome, Putin elaborated, quoted by the TASS news agency.

In this context, the Russian leader is convinced Moscow needs to take “actions that fundamentally solve the problem.”

While recognizing the importance of subsidies and state support, these should be applied “in a targeted manner,” Putin added.

“During discussions with the government, you will probably choose the best options,” the president said in conclusion, making it clear that the ball is now in the lawmakers’ court.

Russia slows its economy to curb inflation, Putin says

During the meeting, Vladimir Putin also claimed that Russian authorities are intentionally slowing down economic growth in order to gain better control over inflation. Elaborating on the topic, he insisted:

“With regard to the decline from growth rates of over 4% GDP – this is not a slump. These are deliberate actions – slowing growth in exchange for curbing inflation.”

Russia’s annual GDP growth slowed to 1.4% in the first quarter of this year and to 1.1% in the second quarter, down from 4.5% at the end of 2024.

Its budget deficit surged to 4.9 trillion rubles (almost $59 billion) in the first seven months of 2025. Meanwhile, inflation remained high this summer, at over 8%.

This month, however, the Bank of Russia cut its benchmark interest rate by one point to 17%, as reported by Cryptopolitan. The move was part of an effort to reverse previous tightening that had taken it to 21%, with the aim of taming inflation.

Putin now agrees with Communist Party leader Gennady Zyuganov that avoiding freezing the economy is the main priority for the Russian government. Zyuganov emphasized it’s important to recognize when overcooling occurs ahead of a potential recession.

The president stressed that Russia is far from entering recession, pointing to the current state of the labor market. His statement echoed recent remarks by the head of the Central Bank of Russia, Elvira Nabiullina.

Speaking at a financial forum in Moscow, the governor urged not to confuse the currently observed economic slowdown with a recession. Quoted by the business daily Vedomosti on Wednesday, she insisted the Russian economy is still growing, albeit at a more moderate pace.

Addressing the parliamentarians, Putin placed a particular emphasis on maintaining macroeconomic stability, which underpins the country’s military power. He highlighted:

“Many of the issues you always consider of utmost importance depend on this. These include the state’s obligations to our citizens, the fulfillment of social commitments, as well as matters related to strengthening and enhancing Russia’s defense capabilities.”

For over three years, Russia has been stubbornly waging a costly war against neighboring Ukraine, which has had a serious impact on its economy, including as a result of heavy Western sanctions targeting its banks and finances, energy revenues, and even crypto networks.

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