The Russian economy is severely stagnating - economist.

Economist Oleg Pendzin pointed out that the situation in Russia cannot be saved by the Central Bank’s measures, as the Russian economy is stagnating.

According to forecasts by Russian economists, by the end of the year, the Central Bank of Russia will raise the key interest rate to 22%.

"With the methods that the Central Bank works with today, it cannot save the situation. Because a very interesting situation has developed — competition between the Central Bank and the Ministry of Finance. The Central Bank increases the key interest rate, while the Ministry of Finance floods the economy with cheap money," said the economist.

Pendzin noted that military expenditures of the Russian Federation negatively impact the economy, which is stagnating.

"When we look at the growth of the Russian military sector and Russian industry in general, they are now on a plateau and are starting to slightly decline. The Russian military machine has reached its maximum, reached its peak. Today, there is a shortage not only of financial resources but also of labor. Less than 2% unemployment — that is critical for Russia's economy," he explained.

The economist noted that the Russian economy is overheating due to war expenses. However, the decline in household income does not affect the policy of Russia's leadership.

"The growth of the population's welfare is the main indicator of the economy’s efficiency in any civilized country. In democratic countries, a decline in real incomes leads to changes in the policy of the ruling cabinet or the ruling political force. In Russia, this does not work. It is a country where elections are formally held, but in reality, it is a dictatorship. The Russian political elite is heading towards impoverishing its own people and is ready for shortages in stores. People will live worse," Pendzin emphasized.