In July 2026, the Russian economy showed a further deterioration in financial activity. The main blow hit the extractive sector, petroleum product manufacturing, and public administration. But the problem is no longer limited to export commodities—domestic demand and investment are also weakening. The Foreign Intelligence Service reports, UNN writes.
The largest decline in revenues occurred in export-oriented industries. In the extraction of oil, gas, and other minerals, they were 9.3% below the average level for the second quarter. In August, pressure will be intensified by settlements for June exports, when global prices for oil, metals, and mineral fertilizers were falling
At the same time, domestic demand is losing momentum. In trade, financial services, insurance, real estate, telecommunications, and other sectors focused on the domestic market, revenues increased by only 1.5%, compared with 6.9% in the second quarter. Support came from financial services, insurance, and real estate. Agriculture and telecommunications, on the contrary, reduced their payments.
Industries dependent on state funding declined even more sharply. In July, their revenues fell by 15.4%, following a 12.6% decline in the second quarter. The largest drop occurred in public administration
Investment activity is also falling. Payments in construction, machine building, equipment manufacturing, and scientific research declined by 2.1%. The largest drop was recorded in electronics, machinery and equipment manufacturing, transport engineering, and specialized construction.
Demand within production chains is also weakening. Revenues from intermediate demand—goods and services that enterprises use in their own production—decreased by 0.9%. The main negative contributions came from agriculture and oil and gas extraction.
Problems are already apparent in most regions. Excluding extraction and public administration, a decline was recorded in the Northwestern Federal District, by 1.5%; the Southern Federal District, by 14.1%; the North Caucasian Federal District, by 4.9%; and the Siberian Federal District, by 3.2%. At the same time, the extractive sector contracted in virtually all federal districts. The commodities-based model that for years ensured the main inflow of money into the Russian economy is beginning to fail across the country