Russia is currently experiencing a high construction inflation rate of between 7.7% and 7.9%, this (of course) will lead to higher construction costs, or projects getting cancelled in 2024 / 2025. GDP growth is forecast to be 2.9% to 3.5% for the 4th Q of 2024.

Russia’s construction sector has contracted by 3.7% since April, 2024. Unfortunately, the Russia-Ukraine conflicts has 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.

The USA, European Union, UK, Canada, Japan South Korea and Australia have levied tough sanctions / penalties on Russia with possible more to come as a result of their hostilities against Ukraine. Russia will have to deal with the severe sanctions that could cripple its’ economy & construction sector. Many US and European Construction related companies have moved their operations out of Russia.
Are sanctions against Russia working? Not really. The Russian Ruble is currently performing reasonably well against other major currencies, the Russian Ruble has been resuscitated by enhanced crude oil exports to both China and India.
Russia is a very significant supplier / exporter of oil, natural gas and metals. Elevated prices on essential materials / metals / commodities, have triggered major price spikes on essential materials / metals / commodities around the world. Ukraine and Russia (between the 2 countries) supply up to 35% of world’s wheat and barley requirements. Countries in the Middle East and in Africa are major importers of these crops, prices have risen by more than 30% with both Russia and Ukraine unable to export these products.

The Russian economy prior the commencement of hostilities in Ukraine was slightly smaller in economic terms than Italy, look for the Russian economy and construction sector to contract by at least 3% to 5% in 2025, price hikes, high inflation and rising unemployment appears to be on the cards in the next 3 to 6 months.