US EditionRussia Eyes Budget Cuts as Sliding Oil Prices Drive Deficit Upward
- On May 7, 2025, Russia faces rising budget deficits as oil prices slump below the federal budget forecast amid ongoing economic decline and war expenditures.
- The drop in oil prices, caused by global production increases and trade disruptions, has lowered revenue, pressuring Russia to reconsider its $60 per barrel budget rule.
- Industrial production weaknesses and reduced oil revenues have led to a possible 0.3% economic contraction in early 2025 despite some late 2024 growth.
- The Finance Ministry now projects a 3.8 trillion ruble deficit in 2025, with oil revenue down 2.6 trillion rubles, and a potential spending cut between 1.5 and 1.6 trillion rubles.
- Due to depleted reserves and a high military budget, Russia may cut civilian programs and revise budget mechanisms, as crude prices are expected to remain low for years.
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Russia Eyes Budget Cuts as Sliding Oil Prices Drive Deficit Upward
Russian authorities are considering forced cuts to federal spending as falling oil prices deplete the reserves needed to fund the war in Ukraine, Bloomberg reported Tuesday, citing an anonymous source familiar with the preliminary discussions.
·Amsterdam, Netherlands
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Russia Mulls Tightening Budget Rule Over Slumping Oil Prices
Russia is considering changing its key budget-building mechanism in response to sliding oil revenue, in a sign the Kremlin expects crude prices will remain lower for longer while the war in Ukraine continues to drain state coffers.
·United States
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Total News Sources23
Leaning Left4Leaning Right2Center1Last UpdatedBias Distribution57% Left
Bias Distribution
- 57% of the sources lean Left
57% Left
L 57%
14%
R 29%
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