Putin Joins Xi Jinping in Skipping BRICS Summit: Is Russia's Economy in Crisis?

# BRICS Summit Commences in Rio with Key Leaders Absent, Casting a Pall on Global Geopolitical Forum The BRICS Summit began in Rio de Janeiro under the stewardship of Brazilian President Luiz Inácio Lula da Silva. However, the notable absences of Chinese President Xi Jinping and Russian President Vladimir Putin were significant. According to Bloomberg, these leaders did not even send delegates, resulting in a lack of representation from major member nations such as China, Russia, Egypt, Iran, and Saudi Arabia. # Is Russia Teetering on the Edge of Economic Collapse? On November 6, CryptoPolitan reported that President Putin’s nonattendance at the summit aligns with signals of a worsening economic crisis in Russia. The Russian economy, heavily reliant on arms production and oil exports, is contending with several deteriorating metrics, including decreasing industrial output, escalating inflation, shrinking consumer spending, and an expanding fiscal deficit. Maxim Reshetnikov, Russia’s Minister of Economic Development, recently remarked that the country is on the cusp of a “recession,” while Finance Minister Anton Siluanov termed the situation a “perfect storm.” Despite these alarming indicators, Putin has dismissed notions of an economic collapse as exaggerated, though he acknowledged the need to prevent a recession or stagflation. Russia’s GDP growth rate for the first quarter of 2023 fell to 1.4%, down sharply from 4.5% in the last quarter of 2022. Manufacturing has faced its steepest contraction in three years, and June's new car sales dropped 30% compared to the previous year. # Energy Revenue Decline Causes Domino Effect Across Industries Economic challenges have rippled across various Russian industries. Rostselmash, a leading tractor and harvester manufacturer, announced production cuts and early staff leave due to declining market demand. Simultaneously, Siberian energy company Rosseti Sibir is on the brink of bankruptcy under heavy debt, has suspended investments, and is demanding higher tariffs for industrial clients. Russian banks also face increasing financial strain from war-related loan burdens, with experts predicting a “moderate-scale” banking crisis by 2026. Russia's military and security budget now comprises 6% of its GDP and 40% of federal spending, a proportion much higher than that of the United States or Germany. While this spending initially spurred growth, it has ultimately driven inflation and created a high-interest-rate environment that further restricts the economy. In addition, revenue from oil and gas—Russia’s pivotal industries—has declined due to weak international oil prices and unmet revenue targets, worsening the country’s fiscal troubles. The absence of pivotal leaders at the BRICS Summit, coupled with these economic issues, highlights the geopolitical and domestic struggles faced by two of the bloc’s most influential nations, potentially impeding the forum’s ability to advance its agenda in a rapidly changing global landscape.