Russian Economy Screwed as Industrial Production Index Plunges
The Russian economy is in shatters than before, with the Industrial Production Index has been declining since December 2024.
Even the military sectors are no longer driving overall growth.
Here are the raw figures: Industrial Production Index (adjusted for seasonal and calendar factors, relative to the average monthly level of 2022):
July 2024 – 107.7
August 2024 – 108.5
September 2024 – 108.3
October 2024 – 109.4
November 2024 – 109.7
December 2024 – 112.2
January 2025 – 108.4
February 2025 – 108.8
March 2025 – 108.0 (it dropped back to the July 2024 level)
Accordingly, since the beginning of the year, the industrial production index in Russia has started to decline.
Auto manufacturers enter state of collapse
In early April, AvtoVAS and KAMAZ report stunning declines with KAMAZ 2024 profit down -96% and LADA March sales down -33% year-over-year and total auto market sales down -44%.
In March 2025, sales of Lada vehicles fell a further -33% year-on-year, down to just 28,699 units. Although marginally higher than February’s result, this slight uptick does little to offset the broader collapse.
Meanwhile, crude oil prices have dropped sharply, and the forces driving the decline suggest the market could have further to fall. This includes Saudi Arabia’s recent decision to raise oil production, combined with rising global trade tensions, is pressuring both supply and demand in ways that risk deepening the downturn.