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Tracking Russia’s economy with alternative data

In a world where official statistics from conflict zones are often treated as statecraft rather than data, a new approach is cutting through the fog. By bypassing the Kremlin's own numbers and turning to energy grids, foreign car sales, and trade partner records, researchers are building a clearer picture of Russia's economic reality. This isn't just about verifying GDP; it's about understanding whether an economy can truly function while under siege and pouring billions into war production.

The Trust Deficit

The central premise of this analysis, led by Hana Saknau during her time at the European Central Bank, is a fundamental question of reliability. "How can we evaluate the impact of the sanctions on the Russian economy?" Saknau asks, highlighting the immediate skepticism that arose after the invasion. The traditional reliance on Rosstat, Russia's statistics agency, became untenable when the agency stopped publishing trade data entirely and abruptly changed its methodology in February 2022.

Tracking Russia’s economy with alternative data

Sakasfoort, reporting on the research, notes that the shift wasn't subtle. The agency began publishing more aggregate data, stripping away the granular details needed for serious analysis. "We see some this the little pointer little clues that okay something must have been going on. There is something that they perhaps don't don't want us to know," Saknau observes. This suggests that the administration's data strategy has shifted from transparency to obfuscation, a move that forces external analysts to rely on "mirror statistics" from trading partners like Turkey and other nations to reconstruct import and export flows.

The researchers' methodology is built on a crucial, albeit risky, assumption: that pre-war data was accurate. "We assume that anything that happened even after Russia annexed Crimea and invaded Donbas. So in 2014 we still sort of assumed that okay even in that period we could still trust the statistics," Saknau explains. This consensus among academic economists provided a baseline, but the war shattered it. The attempt to verify current numbers against a trusted past reveals a stark divergence, with alternative trackers pointing to a deeper contraction than official figures suggest.

"If you know all of these people that work with this data professionally see no red flags, then yes, you know, even if you don't trust the Russian government, it's a pretty safe assumption that before the war at least, these statistics can be trusted."

Beyond the Battlefield

The most compelling aspect of this research is its attempt to separate the noise of military spending from the signal of genuine economic activity. GDP, by its very construction, counts the production of tanks and ammunition as positive economic growth. "Russia has increased military production for example and obviously your public spending has increased and this is reflected in your GDP," Saknau points out. To understand the true health of the civilian economy, one must look elsewhere.

The team sourced fifteen different indicators, ranging from service sector surveys to foreign brand vehicle sales. One particularly telling indicator was energy consumption. Historically, daily data from the Russian energy operator provided a real-time pulse on industrial activity. "We started in October but in November one day I opened the website and I realized that they stopped publishing that data," Saknau recounts. The sudden disappearance of this data, replaced by less useful metrics, served as a "big clue" that the state was actively monitoring and suppressing information flow.

Critics might note that relying on foreign brand sales or specific energy metrics can miss the nuances of a rapidly adapting economy, such as the surge in Chinese vehicle imports or the shift to domestic energy sources. However, the sheer volume of disparate data points—38 national statistical authorities, S&P Global purchasing managers' indices, and mobility data—creates a robustness that single-source official data cannot match. The goal was to find proxies that "all point to domestic economic activity to even like more private economic activity rather than public."

The Cost of Silence

The research underscores a broader trend in modern authoritarian governance: the weaponization of data. When the executive branch decides that certain economic realities are too dangerous to reveal, the result is a vacuum filled by speculation and alternative tracking. Saknau emphasizes the strict boundaries of their project to maintain objectivity and safety. "We never had any contact... with any not just Rostat but also Russian central bank... all the data that we source for our tracker is all publicly available on the internet with zero contact," she states.

This silence from the official channels is perhaps the most telling statistic of all. The fact that a researcher from Frankfurt could trigger a data blackout by simply scraping a website suggests a high level of paranoia and control within the state apparatus. The alternative tracker doesn't just measure economic decline; it measures the extent of information suppression.

Bottom Line

The strongest element of this analysis is its refusal to accept official narratives at face value, using a mosaic of independent data points to reveal the true scale of Russia's economic contraction. Its biggest vulnerability remains the inherent difficulty of measuring a wartime economy where the lines between civilian and military production are deliberately blurred. As the administration continues to tighten its grip on information, the gap between official statistics and ground-level reality will likely widen, making these alternative trackers essential for any serious policy analysis.

"We sort of wanted to also understand how the economy is performing net of that increase in military production because obviously Russia is investing now billions in producing ammunition, producing tanks, missiles and so on to continue the war."

The ultimate takeaway is clear: when a government stops telling the truth about its economy, the only way to know the score is to count the lights, the cars, and the imports yourself.

Sources

Tracking Russia’s economy with alternative data

by Joeri Schasfoort · Money & Macro · Watch video

So, they'll first be able to hear me and then I'll introduce you and then yeah, I'll I'll tell you when they can also hear you. Okay. Hello. Hello everybody.

welcome to this live stream. I'm very excited that you're all here and we're going to explore the global economy a little bit in these types of live streams with experts from all around the world. As you hopefully know, I'm your host, Yuri Kasford, and today we have a very special guest joining us whether to discuss whe if we can actually trust Russia's official GDP statistics. so we'll be welcoming Hana Saknau who is doing a PhD research in macroeconomics political economy and who has while she was at the ECB developed an alternative data tracker to see what's going on with Russia's economy.

importantly without relying on Russia's statistics agency Rostat. So this is something that immediately caught my attention. I'm really happy that she agreed to come on this live stream. But before we come in before we begin, I'd like to remind you that the money micro talks episode are not sponsored, fully made possible by all the patrons and members.

So if you enjoy these talks, then consider supporting this channel that way or making a small donation during the stream. And now without further ado, let's dive into our conversation with Hana Sagno about tracking the Russian economy without official Rustad statistics. Okay. let me just bring you on Hana.

There we go. So now everybody should be able to see you. Welcome. Hi.

Hi everyone. Thank you Yuri for the introduction. Hi. Happy to be here.

Hana. let me just get into it. why did you do this research? Like what was the reason for this type of research?

Is there any reason that we cannot trust Russian statistics? Can we can we not? so before we begin I just wanted to briefly make a disclaimer that all the views expressed here are my own personal and they do not reflect or do not necessarily reflect the views of my previous employer which is the European Central Bank or my current employer which is the University of Croningan. so can we trust Russian statistics?

That's a big question. How can we evaluate the impact of the sanctions on the Russian economy? That was sort of the logic and the questions that we ...