Caporegime
Russia posts another $25billion deficit for January
In recent weeks the Kremlin has tried to compensate by selling off currency reserves and also announced it will try to raise $20billion from domestic bonds
The main cause of Russia's budget woes is the price of its oil, gas and the lack of ability to move it around. Russian oil revenue were cut I half last year and they make up half of Russia's budget revenue, and so going forward of this continues and Russia runs out of assets to sell the Kremlin has to come to terms with a 30 to 40% reduction in tax revenue and it has to cut spending to cover that
And along with this massive reduction in tax revenue, at the same time the Kremlin is looking to rapidly increase defence spending. Russia has never tried to increase spending so much when its revenues were dropping so fast
Russia’s budget deficit soars as energy revenues slump by almost half
Fall in oil and gas sales coupled with sharp rise in defence spending highlight economic damage of Ukraine conflictwww.ft.com
According to some posters I thought Western sanctions had no impact.......