19.01.202615:24:27UTC+00Russia Logs Record Budget Gap in 2025

The Russian federal government reported a budget deficit of RUB 5.65 trillion in 2025, marking the largest shortfall since records began in 1996 and an increase from the RUB 3.47 trillion deficit the previous year, based on preliminary data. This represents the fourth consecutive year of fiscal deficit amidst the ongoing conflict in Ukraine, with expenditures climbing 6.8% to RUB 42.93 trillion, while revenues saw a modest rise of 1.6% to RUB 37.28 trillion. Despite the growing shortfall, Russia managed to remain within its revised budget deficit target, which was set at 2.6% of GDP, after the initial target of 0.5% was disrupted by the weakest oil and gas revenues seen in five years. Revenues from oil and gas amounted to RUB 8.48 trillion, a decrease of 23.8% from the same period in the previous year, driven largely by lower average oil prices and increased discounts on Russian crude due to tighter sanctions. In contrast, revenues from non-oil and gas sources saw a significant annual increase of 12.6% in 2025, totaling RUB 24.9 trillion.