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 in the forecast price of Urals crude, from $69.70 to $56 per barrel, and the strengthening of the ruble, which together have slashed oil and gas revenues by 2.6 trillion rubles (around $33.1 billion), nearly 25% below original projections.

Read more

Category

Business

Why Only a Full Oil Embargo Can Cripple Russia’s War Economy

Apr 03, 2025 13:44

Vlasiuk identified sanctions as a key factor behind the decline in Russia’s energy export earnings.

“This once again proves that Russia remains critically dependent on petrodollars,” he stated.

Earlier, The European Union is also preparing a wide-ranging new sanctions package that may include disconnecting over 20 Russian banks from the SWIFT system, lowering the price cap on Russian oil, and formally banning the Nord Stream gas pipelines.

The proposed measures are part of ongoing efforts to increase pressure on Moscow to end its war against Ukraine. The European Commission is currently discussing the package in coordination with EU member states.

Shield the Ukrainian Sky

Join the fundraiser to help protect civilians from Russian aerial terror.

Donate