As oil prices plummet and the expenses of the almost seven-month war in Ukraine climb, the Russian economy is displaying new signs of strain.
According to fresh data that was just made public this week by the Russian finance ministry, the surplus in the country’s budget almost evaporated during the course of the summer.
By August, the surplus had reduced from $1.37 trillion, or $23 billion, to $137 billion, or $2.3 billion.
Threatening incomes. Brent oil, the European standard, has plunged 25% since early June. Natural gas hasn’t helped Russia’s economy as much as oil.
Even before the EU’s prohibition on Russian oil imports by sea and the Group of Seven’s price restriction, this is a major blow for the business.
Gazprom stated last week that Russian gas supplies to the EU and UK had fallen 49% since the start of the year, despite high pricing.
According to Janis Kluge, a senior associate at the German Institute for International and Security Affairs, both military and economic protection measures have increased.
The Finance Ministry has advised government departments to cut spending by 10% in 2023, according to Vedomosti.