Russia Budget Gap Spikes Despite Oil Windfall Driven by Iran War
July spending and war costs pushed the first seven months’ deficit to 6.5 trillion rubles, or 2.8% of GDP, the ministry said.
- Russia's federal budget recorded a 724 billion ruble deficit in July, pushing the cumulative seven-month shortfall to 6.5 trillion rubles, or 2.8% of gross domestic product.
- Government procurement spending surged 39% to 8.4 trillion rubles as Russia escalates war spending, even as oil-and-gas income fell by a sixth from the previous year to 4.6 trillion rubles .
- Moscow raised the value-added tax to 22% to plug the revenue gap, but suspended government bond auctions in July after investors balked, leaving the state unable to raise money cheaply at home.
- Facing depleted options, officials drafted legislation to move around $40 billion from private pension accounts, while Communist leader Gennady Zyuganov urged Vladimir Putin to tap savings Russians hold in banks.
- The Kremlin prioritizes the 'Caspian Express,' a logistics corridor bypassing the US-blockaded Strait of Hormuz, to sustain its military partnership with Iran and circumvent Western maritime pressure amid budget constraints.
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12 Articles
Russia’s oil money is drying up—so its own people are paying for the war
Russia’s war budget got a brief respite this spring, when the Iran war pushed oil prices up. By July, it was gone. A single month swung from a rare surplus to an $8.8 billion deficit, leaving the seven-month shortfall already bigger than the entire deficit Russia ran last year, with five months still to run.As oil money drains away, the Kremlin is covering the gap by taxing ordinary Russians harder and eyeing their savings. Moscow will not run o…
Russia Budget Gap Spikes Despite Oil Windfall Driven by Iran War
Canadian but Stockholm-listed Meren Energy, with over 15,000 owners on Avanza, boosted profits by more than 900 percent in the second quarter. Now the oil company is raising its forecast for the rest of the year – as the Iran war has dragged on.
The rise in oil prices generated profits for eight oil companies La entrada The war and the fall in profits of oil companies. aparece primero en NODAL.
Russia's budget deficit has risen sharply despite oil super-income due to the war with Iran
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