Russian regions massively fail to meet planned budget revenue targets, with half of the federal subjects running deficit budgets.

Source: Ukraine’s Foreign Intelligence Service

Details: Russia’s Kemerovo Oblast had projected a year-end gap of US$170 million between income and expenditure, but by January–July the deficit had already reached US$380 million. The main reasons are Western sanctions on Russian coal and weak demand for metallurgical products.

In the Republic of Bashkortostan, the deficit doubled the planned level, hitting US$84 million as early as April.

The Republic of Sakha, Yakutia, recorded severe overspending: actual expenditure exceeded the plan by 300% in the first half of the year.

Rostov Oblast had initially planned for a surplus, but by year-end it is expected to be revised into a US$242 million deficit.

“Meanwhile, local authorities are actively reporting increases in one-off payments to volunteer soldiers under contracts with the Russian Ministry of Defence for participation in the war against Ukraine,” the statement noted.

Background: In the first half of 2025, Russia’s consolidated budget deficit rose to 4.95 trillion roubles (about US$52 billion).

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