Russian economy in worse shape than Moscow says, report for EU shows

FILE PHOTO: A woman walks along a bridge, with the Moscow City business centre and the Kremlin wall seen in the background, on a sunny day in Moscow, Russia, February 24, 2025. REUTERS/Evgenia Novozhenina//File Photo

BRUSSELS (Reuters) -The Russian economy is in an increasingly precarious state as a result of a shift to a war mode and of Western sanctions over Moscow's invasion of Ukraine, a report by the Stockholm Institute of Transition Economics (SITE) said on Tuesday.

The report, prepared for talks of European Union finance ministers, said that while still relatively stable, the Russian economy was only superficially resilient and that underlying imbalances and structural weaknesses were growing.