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Russian Budget Revenues Collapse as War, Sanctions, and Mismanagement Eviscerate the Economy

Kyiv Insider | June 10, 2025

Russian government budget revenues continue to collapse as the combined weight of war spending, international sanctions, and systemic mismanagement tears into the foundations of its economy. In May 2025, the Kremlin recorded a federal budget deficit of 167.7 billion rubles—despite May traditionally being a month of budget surpluses for Russia. Total federal revenues for May fell to 2.46 trillion rubles, a 6% drop compared to the same month last year.

Russian Budget Revenues Collapse as War, Sanctions, and Mismanagement Eviscerate the Economy Read Post »

Russia’s 2025 Budget Deficit Triples as Sanctions and Oil Prices Bite

One of the clearest signs of strain inside the Kremlin’s war economy has now emerged in the form of a massive revision to Russia’s 2025 federal budget: the deficit is expected to more than triple. Originally projected at 1.17 trillion rubles (roughly $13 billion), it will now reach 3.8 trillion rubles ($42.2 billion), according to documents obtained by Bloomberg and Ukrainian officials. That’s 1.7% of Russia’s GDP — up from just 0.5% in the previous forecast.