The Kremlin forces state banks to buy bonds due to the budget deficit - intelligence

The Russian government can no longer raise the necessary funds on the market and is forcing state banks to buy federal loan bonds. At the same time, the central bank provides liquidity for this, reports UNN citing the Foreign Intelligence Service of Ukraine.

Details

The Ministry of Finance of the Russian Federation issues debt securities, state banks buy them, and the central bank supports them with additional resources. As a result, public debt becomes an instrument of indirect emission. The budget receives funds, but at the cost of the economy's dependence on printing rubles and increasing inflationary risks.

As of July 1, Russian banks already held government bonds worth $248.1 billion, or about 9% of the banking sector's assets. Since the beginning of the year, their portfolio has grown by another $6.5 billion. The reason for this step is the rapid growth of the budget deficit. In the first half of 2026, it reached almost $77 billion, and military spending remains the main factor. Additional war expenditures may exceed the plan by another $51.3–64.1 billion, part of which the Kremlin wants to cover with new borrowings. The Central Bank of the Russian Federation predicts that the annual deficit could grow to $105.1 billion.

At the same time, the Russian market is not ready to finance the budget on the Kremlin's terms.

Recall

The richest entrepreneurs of Russia are transferring capital into cryptocurrency and foreign real estate. The Russian stock market has lost 30% of its value since April, falling to the level of 2016.