russia is preparing for a record budget deficit
the russian government is forced to urgently revise the budget. Due to the fall in oil prices, budget revenues are declining, while expenditures are increasing. The russian ministry of finance has already admitted that it is necessary to prepare for a record budget deficit since the beginning of the full-scale invasion: in 2025, it will amount to 3.8 trillion rubles – three times more than planned.
▫️ The russian economy continues to sit on the “oil needle,” with its budget critically dependent on oil prices. At the same time, due to the huge costs of the war, russia has no resources left to balance fluctuations in the commodity market.
It is quite predictable that cheaper oil will lead to a significant drop in the living standards of ordinary russians. But the kremlin refuses to end the war, which is draining resources from the budget and depleting the economy. Instead, the russian authorities continue to finance the armed aggression against Ukraine at the expense of the welfare of their own population.
