A Bank of Estonia expert, Peeter Luikmel, indicates Russia’s economy is nearing stagnation due to a confluence of factors. These include ongoing Ukrainian airstrikes targeting Russian infrastructure and the sustained impact of Western sanctions imposed following the invasion of Ukraine. Significant war-related losses are also contributing to the economic strain. However, Luikmel emphasizes that the most telling sign of economic trouble is the declining confidence among Russian businesses. This drop in confidence suggests a pessimistic outlook on future economic performance within the country. The combined pressures present a challenging environment for Russia’s economic stability and growth prospects.