The Russian military budget is “crackling” against the backdrop of peace negotiations - media

Today, 00:33 | Economy 
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Russia faces serious financial difficulties in financing its war against Ukraine. Against the backdrop of negotiations, this narrows the Kremlin’s ability to prolong the war without economic consequences. Bloomberg news agency states this, citing information from its sources.. The Russian government is preparing to exceed its planned budget deficit if military spending rises again. Now Moscow is looking for additional income in the amount of up to 1.2 trillion. rubles to keep the deficit within the planned 1.6% of GDP. The price of Russian Urals oil remains below budget, and the ruble exchange rate is significantly stronger than forecast. In such conditions, oil and gas revenues may be more than two trillion rubles less than expected, which will worsen the deficit. Last year, the Kremlin was forced to revise budget figures. Record levels of domestic borrowing to cover shortfalls. But they are getting more and more expensive. However, amid economic pressure, the Kremlin has not demonstrated its readiness to reduce its territorial demands in the negotiations on Ukraine and still demands to “hand over” Donbass. Sources say a combination of budget restrictions, sanctions and an uncertain outlook for energy revenues is gradually weakening Russia's position and narrowing the " Let us recall that the Foreign Intelligence Service of Ukraine previously stated that the Russian economy in 2025 actually stopped growing against the backdrop of strict monetary policy, falling investment and weakening domestic demand, which increased the risks of stagflation and consolidated stagnation in the civilian sectors. The budget " Subscribe to our channels https://t. me/korrespondentnet and WhatsApp.

Источник: Корреспондент.net