Russia’s Budget Deficit Tops $80 Billion Despite Kremlin Stability Claims

Russia's macroeconomic stability remains "absolutely secured," Kremlin spokesman Dmitry Peskov claimed on June 23, despite extreme volatility across global energy markets and the mounting cost of the war against Ukraine.

Speaking at a daily press briefing, as reported by The Moscow Times, Peskov told reporters that "macroeconomic stability is absolutely secured, and this is not a matter of doubt."

"The stability of the Russian economy is secured, macroeconomic stability is absolutely secured, and this is not a matter of doubt for anyone," Peskov stated.

The reassurance landed against mounting evidence of fiscal pressure: a federal revenue shortfall, a swelling deficit, and a stock market sinking to its lowest level in more than three years.

Russia's federal budget faces a revenue shortfall of roughly $28 billion, driven by weaker corporate profits, falling crude prices, and a stronger ruble, The Moscow Times added.

Surging wartime spending has pushed the deficit past $80 billion over the first five months of the year, the outlet noted.

Moscow initially gained from an oil-price surge triggered by the war in Iran, when its benchmark Urals crude peaked near $120 per barrel, the publication reported. The price has since collapsed to around $65.

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Russian Stocks Fall to Three-Year Low Amid Historic Selloff

Jun 22, 2026 17:59

The benchmark MOEX  index fell more than 4% on Monday to a three-year low, extending a 15-week slide, according to the report. The drop followed a modest Central Bank rate cut last week, signaling that high borrowing costs would persist longer than investors had expected.

Peskov acknowledged that swings in global energy prices weigh directly on the Russian economy but claimed the country has shifted away from outright dependence on raw resources. While oil revenues still contribute heavily to the budget, he added, "the share of non-oil and gas revenues is nevertheless growing."

Inflation remains a central worry for policymakers as Ukrainian drone strikes target Russian oil refineries and fuel-supply networks, disruptions that have forced fuel rationing across the country over the past month, The Moscow Times stated.

The war has been steadily draining Russia's public finances. Military outlays consumed roughly 46% of all federal budget spending in the first quarter of 2026—close to every second ruble—the highest quarterly wartime expenditure recorded since the full-scale invasion began.

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