Russia's economy defies challenges with growth in construction and agriculture

Russia’s economic sectors are showing signs of growth despite ongoing challenges. At the St. Petersburg International Economic Forum (SPIEF 18+), VTB board member Ruslan Yeremenko highlighted key trends in construction, agriculture, and business investment. His remarks pointed to shifts in industry priorities and the impact of government support on corporate activity.

The construction industry is moving away from individual projects toward broader territorial development schemes. Yeremenko noted that while real estate remains a preferred savings option, the need to replace outdated housing continues to drive demand. However, high borrowing costs have reduced mass mortgage applications, slowing some growth in the sector.

In the business sector, small and medium-sized enterprises (SMEs) are maintaining strong investment demand, even with high interest rates. Investment loans now make up over a third of VTB’s SME lending portfolio. Yeremenko attributed this resilience to state-backed support measures, which have helped offset the Central Bank’s tight monetary policy. Elsewhere, Russia has become a major exporter of meat products. The hospitality industry is also expanding, thanks to government programmes aimed at boosting tourism and domestic services. Corporate profits have risen, leading to new investment projects across multiple sectors.

The combination of state support and corporate profitability is sustaining investment activity in key industries. Despite high interest rates, SMEs continue to seek funding for expansion. Meanwhile, construction and agriculture remain central to Russia’s economic strategy, with long-term development plans taking precedence over short-term projects.