The recent US bombing of Iran’s three nuclear facilities casts a shadow on future Russian construction growth prospects; construction costs & the material supply chain could be a challenge going forward.

The good news is that Russia & the US are scheduled to meet & discuss a ceasefire related to the ongoing conflict in Ukraine, however the war continues, with no end in sight.

Russia’s ruble has recovered marginally in the last 3 months to 78 Russian Ruble to the US Dollar. Russia’s economy appears to be in a state of flux. Russia is currently experiencing a high construction inflation rate of between 8.5% and 10.5%, this of course will lead to higher construction costs or projects getting cancelled in 2025 / 2026. GDP growth is forecast to be 1.8% for the 3rd Q of 2025.

Russia’s construction sector has contracted by 5% in the last 12 months. Unfortunately, the Russia-Ukraine conflicts have impacted the Russian Economy and the Russian Construction Sector, look for this problem to continue until a peaceful solution can be found, hopefully in the next 3 to 6 months. 

Russia continues to utilize its’ vast reserves of natural gas, oil, coal, fertilizers & minerals to maintain its’ political / economic power with countries such as India, China, Brazil, North Korea & Belarus.

The Russian economy (prior the commencement of hostilities in Ukraine) was slightly smaller in economic terms than Italy. Price hikes, high inflation and rising unemployment appears to be on the cards in the next 6 to 12 months.