Russian economy goes into red and drags Belarus down with it – Foreign Intelligence Service
The Russian and Belarusian economies ended the first quarter of 2026 in contraction.
The Foreign Intelligence Service of Ukraine stated this, Censor.NET reports.
According to the Foreign Intelligence Service, Belarus’s economy shrank by 0.4%, while Russia’s contracted by 0.3%.
Why the situation worsened
The intelligence service said the Russian Central Bank’s fight against inflation dealt an additional blow to Russia’s economy.
After the key interest rate was raised, loans for businesses and industry became sharply more expensive, slowing production.
The Foreign Intelligence Service noted that Belarus is heavily dependent on the Russian market, so it is feeling the economic crisis together with Russia.
What the intelligence service forecasts
The Foreign Intelligence Service said Belarus’s economy is at risk of stagflation, a simultaneous economic downturn and price growth.
It also noted that the difference in the cost of a grocery basket between Poland and Belarus has narrowed significantly.
The intelligence service believes that even the end of the war would not allow Russia to restore its economy quickly because of accumulated structural problems.
For Belarus, according to the Foreign Intelligence Service, the consequences could be even more difficult due to its growing economic dependence on Russia.
