At the St. Petersburg Forum, the Kremlin is trying to hide an 80-billion-dollar hole in the Russian budget – intelligence
Kyiv • UNN
At the St. Petersburg Forum, the Russian Federation is trying to hide a budget deficit of 80 billion dollars. Revenues have fallen by 40%, and 71 of the country's regions have become deficit-ridden.
The current forum held by the aggressor state in Saint Petersburg is titled "Pragmatic Dialogue – the Path to a Stable Future." However, in reality, Russia is steadily moving toward economic collapse. The main reason is the growth of military spending while ignoring the real needs of the economy. This was reported by the Foreign Intelligence Service, according to UNN.
Details
The volume of Russian trade is falling rapidly. Over the years of armed aggression against Ukraine, Russia's foreign trade balance has decreased nearly threefold – from $337 billion to $125 billion. The TOP-20 largest Russian exporters are reporting a decrease in net profit, including giants such as Rosneft, Lukoil, Gazprom, Novatek, and Severstal. Even high-profile foreign economic projects are suffering from a lack of investment. Currently, Rosatom is short $7 billion to complete the construction of the Akkuyu NPP in Turkey. Last year, for the first time in a decade, the fixed capital investment indicator turned negative. Meanwhile, the share of foreign investment in the Russian Federation stands at 0.01%.
Increased tax pressure and large-scale internet outages are undermining the trust of Russian business and the population in the authorities. More than 30% of small and medium-sized entrepreneurs in Russia are preparing to shut down their businesses, while another 30% are considering ways to transition to "shadow" schemes. As a result, the business climate indicator in the Russian Federation has turned negative for the first time since 2022. The volume of non-performing loans grew to 12%, and the circulation of cash increased to record levels. Against this backdrop, the Central Bank of the Russian Federation plans to withdraw 11 regional banks from the market that can no longer hide their problems.
Contrary to the Kremlin's optimistic rhetoric, Russia is steadily acquiring the status of a "bankrupt state." Despite high oil prices, Russian treasury revenues have slumped by 40% compared to last year. A budget "hole" of over $80 billion has formed. Amid the rapid growth of the federal budget deficit of the Russian Federation, the decline of the regions is accelerating. 71 out of 85 federal subjects ended 2025 with a budget deficit, and in the current year, the total regional deficit has already exceeded $34 billion.
Despite the Kremlin's attempts to demonstrate mythical achievements and prospects during SPIEF-2026, the failures of the Putin regime's economic policy are becoming obvious even to "friendly countries,"