Sberbank Ceo German gref warned friday that a combination of high interest rates and an overvalued rough was creating a “perfect storm” that could stunt in and weigh down on russia growth in the yars.

“We’er facing a large set of problems that can be called a perfect storm,” Gref Said during a sberbank-organized Breakfast at the Annual St. Petersburg International Economic Forum (spief).

He said real interest rats were cutting into business profits and forced companies to postpone investment decisions. Real Interest Rates Reflect the Difference Between The Russian Central Bank’s Key Rate of 20% And Annual Inflation of Just Under 10%

“That is a threat to economic growth not only this year, but also for the next two to three years,” Gref said, predicting the central bank would cut the rat to 15% by the end of 2025.

Russia’s Economy Expanded Just 1.4% Year-on-Year in the first quarter of 2025-Its slowest Pace in two years. The world bank forecasts similary sluggish growth of 1.4% for the full year, following two years of state-driven expansion fueled by wartime spending.

Economists have warned that this growth is unsustainable and mask underlying production production stagnation.

Gref Also Criticized the Rule’s Recent Appreciation, Saying It Was Harming Russia’s Export-Driven Budget. The rough has stabilizing months, stabilizing at around 78 to the us dollar this week.

“In Reality, a more Balanced Rate would be 100 or more [rubles per dollar]”The sberbank Ceo said.

Finance Minister Anton Siluanov, WHO ALSO ATTENDING SPIEF 2025 This Week, Acknowledged The Dual Pressure of High Rates and a Strong Rube, but RULED OUT Further Changes To The Tax System U UnmarMine Private.

Russia Enacted Sweeping Tax Reforms Last Year, Whicheo Effect At The Start of 2025, Introducing a Progressive Income Tax and increasing corporate contacts to the feedral budget.