‘Considerable margin of safety’: Kremlin dismisses Trump’s warning of Russian economic collapse

Kremlin spokesman Dmitry Peskov declined to comment directly on Trump’s remarks but maintained that Moscow was strong enough to withstand Western pressure.

“As for the Russian economy, it has a sufficient and considerable margin of safety to allow the country’s leadership and all of us to implement the plans that we set for ourselves,” Peskov told reporters, Reuters reported.

He added that Putin remained open to talks to end the conflict in Ukraine and expressed gratitude to Trump for his diplomatic efforts.

Trump had also criticised the BRICS grouping — which includes Brazil, Russia, India, China, and South Africa — calling it “an attack on the dollar.” Peskov pushed back, saying the bloc “was never aimed at other countries or their currencies.”

Russia’s economy

Russia’s economy, while resilient under sanctions, has slowed sharply this year. The government forecasts GDP growth of just 1% in 2025, down from 4.3% in 2024. The International Monetary Fund has cut its own estimate further, projecting growth at 0.6%.

During Putin’s first two presidential terms from 2000 to 2008, Russia’s economy expanded from under $200 billion to $1.7 trillion. But over the past decade, growth has stagnated — nominal GDP now stands at around $2.2 trillion, roughly the same as in 2013, before Moscow annexed Crimea.

Western governments argue that Russia’s economy is weaker than it appears and that increased pressure could force the Kremlin to alter course. Moscow, however, claims it has deliberately slowed economic expansion to prevent overheating and points out that it outperformed the G7 average in both 2023 and 2024.

Government denies fuel shortages

Responding to Trump’s remarks about gasoline shortages, Deputy Prime Minister Alexander Novak said Russia’s domestic energy supply remains stable.

“We have a stable domestic market supply, we see no problems in this regard,” Novak said at an energy conference in Moscow, Reuters reported. “The balance is maintained between production and consumption, and we… are doing everything to ensure that this remains the case.”

While isolated shortages have occurred in some regions due to Ukrainian drone strikes on refineries, the government has redirected supplies to affected areas. Novak said that double-digit interest rates had earlier deterred retailers from stockpiling fuel, but insisted that overall availability was not in question.