The head of Russia’s largest bank, German Gref, warns that inflation in Russia is accelerating: “We are beginning to observe certain trends”

Inflation in Russia is accelerating, mainly due to the decline in gasoline and diesel production following Ukrainian attacks on Russian refineries, German Gref, head of Sberbank, told Reuters. He made the statements at an economic forum held in the city of Vladivostok.

Gref said that the decline in consumption has been visible since June and is a cause for concern. According to him, the loss of part of the refining capacity is directly contributing to inflationary pressures. Sberbank nevertheless estimates that this year's net profit will exceed the 2025 level and could reach a new record in 2027.

The warnings come after Boris Titov, Vladimir Putin's representative for international development, said that the Russian economy risks "going off the rails" if it is oriented almost exclusively toward the military-industrial complex. He advocated maintaining a balance between the military and civilian economies.

The Russian economy is estimated to grow by just 0.4% this year, while numerous civilian sectors are stagnating or contracting.