Summary
The article discusses the increasing costs of the Ukraine war for Russia. Russia's national defense budget indicates the war's expenses could rise notably in 2025, but declining oil revenues are challenging Russia's ability to fund the war. Economic pressures and international sanctions are impacting Russia's financial situation.
Key Facts
- Russia's war costs in Ukraine are projected to be 5.1% of its GDP by 2025, about 11 trillion rubles ($135 billion).
- Next year's costs could rise to more than $170 billion.
- Declining sales in Russian energy due to global market changes and reduced purchases have impacted Russia's revenue.
- India's oil purchases from Russia have dropped by 30%, responding to pressure from the Trump administration.
- Russia's government reported January's energy revenue at just $5.13 billion, the lowest since July 2020.
- Russia may face a budget deficit up to three times bigger than official predictions by the end of the year.
- Russia's National Wealth Fund has reportedly lost about two-thirds of its liquid assets since 2022.
- The European Union recently passed its twentieth sanctions package since the conflict began in 2022, aiming to increase pressure on Russia.
