Russia’s war costs exceed oil export revenues, says Gonchar
13 March 14:29
For the first time in the history of post-Soviet Russia, revenues from oil and oil product exports have fallen below the state’s military spending. This gap between revenues and expenditures continues to grow, putting increasing pressure on the Kremlin’s budget. This was stated by Mikhail Gonchar, an expert on international energy and security relations, in an interview with the YouTube channel "Komersant Ukrainian".
“At the end of 2025, for the first time in the history of the post-Soviet Russian Federation, revenues from oil and petroleum product exports will be lower than military spending,” he said.
According to the expert, even during the years of falling oil prices, revenues from oil exports covered a significant part of Russia’s military needs. However, after the failure of Putin’s plan for a blitzkrieg in Ukraine and the transition of the Russian economy to a war footing, the Kremlin’s war expenditures have risen sharply.
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“According to estimates by analysts at the Strategy XXI Global Studies Center, even if last year’s oil prices remain unchanged, the growth in military spending will only deepen the imbalance in the Russian budget,” Gonchar said.
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He also added that the current rise in global oil prices due to the escalation of events in the Middle East could give Russia a short-term financial boost.
