Russia expects to overspend significantly on its Ukraine war efforts this year, potentially by at least $28bn, with Finance Minister Anton Siluanov warning of a possible ₽4trn overspend in a "negative scenario". Mr Siluanov urged the cabinet to freeze approximately ₽2.9 trillion Russian roubles ($40.8bn) in non-war-related spending and projected further ₽4trn overspends in 2027 and 2028.
Budget Deficit Worsens
The country's budget deficit has already swelled to ₽5.9trn by April, considerably higher than the anticipated ₽3.8trn for the year. Despite sanctions, Russia's economy, boosted by defence and industry, rose to become the world's ninth largest last year, though the war economy is now exhibiting signs of strain.
Military Advances Slow
Russia's military advances in Ukraine have slowed considerably, with only 104 square kilometres seized this year compared to 1,619 square kilometres in the same period last year. The combination of escalating costs and diminishing territorial gains raises questions about the sustainability of Russia's war effort.
