Russia’s ballooning budget deficit

Hello! Welcome to your weekly guide to the Russian economy, written by Alexandra Prokopenko and Alexander Kolyandr and brought to you by The Bell. Our top story is on data revealing the current state of Russia’s finances, including a steadily growing budget deficit. We also assess the upcoming St. Petersburg Economic Forum, which is likely to be yet another illustration of Russia’s international isolation.

Data reveals rising pressure on Russia’s state finances

Russia is facing more and more fiscal problems due to low oil prices, according to recent data released by the Finance Ministry. In particular, oil-and-gas revenue continues to fall, while the budget deficit keeps increasing. This may change if the recent escalation of the Iran-Israel conflict leads to a prolonged increase in oil prices. In all likelihood, an economic slowdown will soon start to reduce the country’s non-oil-and-gas-revenues.