As a NATO official noted, Russia's oil and gas revenues fell by 20% – about $20 billion compared to last year. The share of revenues from energy resources in the budget decreased from 30% to 25%, which forced Russia to carry out tax reforms, the media wrote.
It also recalled that the National Welfare Fund of the Russian Federation has been reduced from $150 billion to $37 billion. This further complicates the economic situation in the country, a senior LIGA.net official was quoted as saying.
“The Russian economy is increasingly strained. It is most likely in recession, and sanctions are affecting trade, access to technology, and international financial relations,” said a top Alliance official.
Russia is still capable of maintaining military operations until at least 2027, so it will also be able to hold out in 2026, the article says. At the same time, the country's transition to a war economy creates serious risks for Russia after the end of the war, LIGA.net wrote.
“It will be very difficult to come out of this with a severely depleted Welfare Fund, which will have truly devastating consequences for the population when you look at the number of dead and seriously injured. So they can hold out for a while longer, but every day that they hold out only adds to the challenges that Russia will face when this is all over,” the official concluded.
