Russia launches new investment cycle — Putin outlines economic priorities
On Wednesday, at a meeting of the Council for Strategic Development and National Projects, Russian President Vladimir Putin identified the launch of a new investment cycle in industry, agriculture, services and housing construction as a key priority for the national economy.
When a major economy shifts from an export-oriented model to reliance on the domestic market, this requires not just political will but a fundamental overhaul of the entire management system. Putin, noting moderate but positive growth, is effectively signalling that the era of large-scale infrastructure projects is giving way to targeted investments aimed at improving quality of life and technological modernisation. Under external pressure, this is not just an economic manoeuvre but a strategic choice in favour of sovereignty.
Putin noted that many of Russia’s export-oriented mega-projects in the chemical, metallurgical, mining and petrochemical industries have already passed the peak of their investment phase, leading to a slowdown in capital expenditure. “The overall economic dynamics are moderate but positive. Gross domestic product (GDP) growth is around 1 per cent. Moreover, GDP grew by 0.6 per cent in the first half of the year and reached 1.3 per cent in the second quarter,” he said. Noting that Ukrainian attacks had not caused serious damage, Putin stated that it was necessary to restore logistics and warehouse infrastructure, including with government participation.
Deputy Prime Minister Alexander Novak noted that despite the impact of international sanctions, Russia’s real GDP has grown by more than 10 per cent over the past three years. During this period, the structure of Russia’s economic growth has changed. The share of net economic exports shrank by almost three times, and the economy has effectively shifted towards the domestic market. Investment in 2025 amounted to 23.3% of GDP, reaching its highest level in 15 years.
Novak told Putin at the meeting that the sectoral structure of the Russian economy had also undergone changes. Manufacturing became the key driver of growth, and its share rose from 13% to nearly 15% in 2025. For the first time, manufacturing output is consistently more than 1.5 times higher than extractive industry output. The share of high-tech industries rose from 15% to 18.4%.
The Russian economy is undergoing a structural transformation: reduced dependence on raw material exports is accompanied by growth in processing and high-tech sectors. This aligns with the long-term strategy of import substitution and technological sovereignty that the Kremlin has been pursuing since 2014. The new investment cycle, as outlined by Putin, implies not just budget injections but also stimulating private investment in priority sectors, including housing construction and agriculture.
As CCTV+ reports, the statements by the Russian president and his deputy prime minister paint a picture of an economy adapting to new realities by relying on internal resources. Moderate growth, a shift in export structure and the rise of high-tech industries all point to a search for a new development model. Whether the launched investment cycle can turn these trends into a sustainable trajectory will become clear in the coming years.
