Sanctions for the invasion of Ukraine and a drop in Russian oil and gas revenues have caused a gigantic $25bn budget deficit in Russia.
Russia's oil and gas revenues plummeted in January 2023, leading to the biggest budget deficit in the first month of the year since at least 1998.
In particular, tax revenues from oil and gas fell by 46% year-on-year in January 2023. At the same time, spending rose by 59% due to the Russian invasion of Ukraine. The combination of these factors gave Russia a government deficit of 1.76 trillion rubles ($25 billion).
