By: Denga Mavhunga
JOHANNESBURG - South Africa has invited Russian President Vladimir Putin to the G20 Summit in November, but it is unlikely the Russian leader will attend.
In June, Russian Ambassador-at-Large Marat Berdyev told the Russian state-owned media outlet RIA Novosti that an invitation had been extended by President Cyril Ramaphosa to Putin. However, the Russian leader does not often travel due to a warrant of arrest that was issued by the International Criminal Court in March 2023.
Putin is allegedly responsible for unlawfully deporting Ukrainian children and unlawfully transferring them from occupied Ukraine to Russia.
Russia’s participation in the G20 has not been affected by the war against Ukraine.
The country has often been represented at G20 summits by Foreign Minister Sergey Lavrov, including last year’s summit in Brazil.
Economy:
Russia was a founding member of the G20.
It’s wartime economy has shown both short-term resilience and growing long-term vulnerability.
In 2024, the country delivered GDP growth of over 4%, supported by soaring defence spending, strong consumer demand, and record government investment.
But the momentum seemed to have faded by mid-2025.
The IMF now forecasts growth at just 0.9% in 2025, down sharply from previous estimates.
Russia’s economy contracted significantly in early 2025, raising concerns about underlying structural weaknesses.
Inflation has become one of the country’s biggest economic headaches. Consumer prices surged beyond 10% in early 2025, fuelled by higher wages, a weaker Ruble, and continued domestic demand.
In response, the central bank raised interest rates to between 18% and 21%, the highest in years.
While these hikes aim to curb inflation, they have also increased borrowing costs, putting pressure on households and businesses.
The benefits have started to seep through. In July 2025, consumer prices were at 8.79%, down from 9.4% the previous month.
Key sectors:
Energy remains the backbone of Russia’s economy, accounting for approximately 30% of government revenue and 59% of exports in 2025.
As the world’s largest exporter of natural gas and a top oil and coal producer, Russia continues to rely heavily on hydrocarbons such as natural gas, despite global shifts towards cleaner energy.
Defence manufacturing has surged amid Russia’s wartime economy, supported by record government spending and state-led investments. This sector plays a critical role in sustaining industrial output and employment, although it ties the economy tightly to geopolitical tensions.
Heavy manufacturing and agriculture have struggled amidst inflationary pressures and disruptions to the supply chain.
Domestic consumer demand has also weakened due to rising living costs and tighter credit conditions.
Putin’s administration has leaned heavily on state-led investments, subsidised loans, and record defence spending to sustain economic activity.
This strategy has helped maintain growth in the short term, but critics argue it deepens long-term vulnerabilities by tying the economy too closely to war-related industries.
FUN FACTS ABOUT RUSSIA
- Low unemployment: Russia has one of the lowest unemployment rates in the world, at around 4%
- Global arms exporter: Russia is the third-largest arms exporter globally, supplying weapons to over 50 countries
- The longest railway: Russia is home to the Trans-Siberian Railway, the longest railway line in the world, stretching over 9,200km and vital for trade and connectivity across Eurasia