Top Russian Banker Says Economy Can Cope Despite Sanctions

Andrei Kostin, the chief executive of VTB, said the Russian economy can cope with Western sanctions despite facing significant headwinds.

Kostin's assessment comes as Russia continues to navigate a militarized economy and heavy international restrictions. His warnings about slowing growth and rising costs highlight the internal pressures facing the country's financial stability.

Speaking during the Russian Economic Forum in St Petersburg, Kostin said the economy can cope ^[1]. However, he said that the sanctions-hit, militarized economy is expected to slow in 2025 ^[2]. He further said that profits for banks will fall as the economic climate shifts.

Kostin also addressed the cost of borrowing within the country. He said the benchmark interest rate could climb to 23% by the end of the year ^[2]. This projection suggests a tightening of monetary policy to combat inflation or currency instability.

Beyond domestic finance, the VTB chief addressed international legal and political disputes. He said the world must condemn illegal asset seizures and work toward a quick peace deal in Ukraine ^[3].

Kostin leads VTB, which is Russia's second-largest bank. His comments at the forum provide a glimpse into how the Kremlin's financial leadership views the sustainability of the current economic model under the weight of prolonged conflict and global isolation.