“Russia’s economic might is nothing but an illusion”: Zhalilo on the 4.5 trillion deficit and the crisis in Russia

The Russian economy entered 2026 with figures that contradict the Kremlin’s official rhetoric. The budget deficit for the first quarter alone exceeded 4.5 trillion rubles—more than the planned spending for the entire year. At the same time, Putin continues to speak publicly about the country’s economic strength.

Economist Yaroslav Zhalilo discussed this in an interview with the YouTube channel "Komersant Ukrainian".

According to him, the Russian economy is operating in a mode where the entire financial system is subordinated to a single goal: financing the war.

The Central Bank is keeping the key rate at 20% for two purposes simultaneously—to attract borrowed funds and to curb inflation caused by the massive injection of funds into the military-industrial complex.

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That is precisely why the number of delinquent retail loans reached its highest level since 2019 by the spring of 2026, the economist notes.

“In other words, these are already derivative factors that suggest this power is just an illusion in people’s minds,” the economist concluded.

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“Russia’s economic might is nothing but an illusion”: Zhalilo on the 4.5 trillion deficit and the crisis in Russia