Russia's Budget Deficit Triples Amid Sanctions and Low Oil Prices, Ukrainian Official Says

Russia's budget deficit triples amid sanctions and low oil prices, Ukrainian official says

Russia has tripled its projected budget deficit for 2025 amid a sharp drop in oil revenues, driven by Western sanctions and plunging crude prices, President Volodymyr Zelensky's commissioner for sanctions policy, Vladyslav Vlasiuk, said on May 29.According to Vlasiuk, the Kremlin has recently approved changes to its federal budget, increasing the planned deficit from 1.17 trillion rubles ($14.8 billion) to 3.8 trillion rubles ($48.3 billion), or…

The State Duma of the Russian Federation approved in the first reading government amendments to the federal budget for 2025, which provide for an increase of more than three times the budget deficit to the level of last year.

Due to the growth of spending, the forecast for the deficit of the Russian budget in 2025 increased to 3.8 trillion rubles.

I will also remind you that the Russian economy is most sensitive to oil prices, the export revenues of which form up to 30% of the Russian budget.Official statistics report victories. In 2024, the Russian economy showed growth, exceeding the expectations of experts. According to official sources, Russia's GDP grew by 4.1%. This has happened “thanks to increased investment, consumer demand and the growth of real incomes of the population.” This …

Russia to Triple 2025 Budget Deficit Amid Sanctions and Oil Revenue Drop

Russia has revised its 2025 federal budget, increasing the planned deficit more than threefold, from 1.17 trillion rubles (approximately $13 billion) to 3.8 trillion rubles (about $42.2 billion), due to declining oil revenues and the continued impact of international sanctions. Ukraine’s Presidential Commissioner for Sanctions Policy Vladyslav Vlasiuk announced the update on May 29. According to Vlasiuk, the budget shortfall is driven by a drop …

The Kremlin has money problems.