Despite US President Donald Trump's statements that Russia has an advantage in the war against Ukraine, economists say that the country's position is weaker than ever, as the Kremlin has spent most of the cash reserves and borrowed funds that fueled its military spending, and even greater problems lie ahead. The Washington Post writes about this, UNN reports.
Details
It is noted that Russia's prospects will only worsen, as tough new sanctions against Russia's oil sector will exacerbate the shortage of funds, which could lead to a banking crisis next year, even if Russian dictator Vladimir Putin maintains a tough stance in negotiations to end the war.
A banking crisis is possible. … A default crisis is possible. I don't want to think about continuing the war or escalation
The authors point out that new sanctions imposed by the US Treasury Department in October against Russia's two largest oil giants, Rosneft and Lukoil, are increasing pressure on the budget and energy sector, as Moscow is forced to agree to increasingly large discounts – more than $20 per barrel of oil.
The oil and gas industry is sliding into crisis, and the latest sanctions will accelerate this
At the same time, the publication indicates that despite growing financial problems, most representatives of the Russian elite do not expect massive social protests or a significant impact of the economic crisis on the Kremlin's political decisions. At the same time, as even experts close to the government admit, 2026 could be the first truly difficult year of the war for Russia from an economic point of view.
Recall
According to the Foreign Intelligence Service of Ukraine, Russia's military expenditures for the first 9 months of 2025 reached 11.8 trillion rubles, which is four times more than in 2021. The war costs 43.4 billion rubles per day, absorbing 44% of federal taxes.