Russian government preps population for drastic lowering of living standards

Russia’s economic struggles are piling up as oil revenues continue to fall and Western sanctions slowly but surely cripple the aggressor’s economy,  Ukraine’s Center for Countering Disinformation (CCD) reveals.

At a recent extended meeting of Russia’s Ministry of Finance, Finance Minister Anton Siluanov admitted that turbulence in the oil market is forcing the government to reassess its spending priorities. “We will have to be somewhat more modest in our desires,” Siluanov reportedly said, acknowledging the need to align expenditures with new economic realities.

The CCD reports that Russia anticipates a drop in budget revenues in 2025 due to declining oil prices and sanctions. In March, revenues from oil and gas fell by 17%, and projections suggest that figure could reach 22% by the end of April.

Despite the deteriorating fiscal outlook and an expected decline in living standards for ordinary Russians, the Kremlin continues to prioritize military expenditures. The CCD notes that payments to war contractors and investments in weapons production remain key budget items, even as the government scales back on domestic spending.

“The Kremlin has no intention of ending the war and will continue to economize at the expense of its own citizens,” the CCD said in its statement.

Citing the Ukrainian Foreign Intelligence Service, the Center also reported that further strengthening of the Russian ruble is unlikely, due to ongoing geopolitical instability and an increasingly fragile foreign trade balance.

Meanwhile, Russia’s civilian industrial sector has officially entered recession, according to a new report from the Center for Macroeconomic Analysis and Short-Term Forecasting (CMASF), underscoring the growing strain on the country’s economy amid prolonged military mobilization and tightening international isolation.