Russia is facing mounting economic and military pressure as Ukraine records fresh battlefield gains andfuel shortages deepeninside Crimea, according to new analysis and official data.
Warnings from financial officials and central bank sources suggestMoscow’s budget deficitcould widen significantly if defence spending continues at its current pace, Bloomberg has reported.
The concerns come asUkraine’s armed forces make incremental advances on the frontline, whileRussiacontinues to suffer near-daily attacks on its energy infrastructure.
Russia’s Finance Ministry and central bank have reportedly modelled scenarios in which the national budget deficit expands sharply if military expenditure is maintained at wartime levels.
Officials have warned privately that defence spending may need to rise further this year to cover a funding gap potentially reaching around three trillion rubles (£31bn), according to sources familiar with internal discussions.
However, other policymakers have argued for cuts elsewhere in the budget, warning that Russia’s stretched finances are becoming increasingly difficult to sustain.
Finance Minister Anton Siluanov has separately stressed the need for restraint in public spending, warning that “reserves are not endless”.
Analysis from the Institute for the Study of War (ISW) indicates Ukraine regained more territory than it lost in May, resulting in a net gain of around 282 square kilometres (109 square miles), reports the Daily Mail.
It marks a continuation of a recent trend in which Russian advances have slowed, with Kyiv claiming improved effectiveness in drone and mid-range strikes.
Ukraine’s gains remain limited in absolute terms, but analysts say they point to a gradual shift in momentum in parts of the eastern and southern frontline.
Source: Daily Express :: World Feed
