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Zelensky: Russia's Budget Deficit Soars to $100 Billion

10/21/2025

40 8 Full Breakdown

Summary

Story summary

Ukrainian President Volodymyr Zelensky announced on October 19 that Russia's budget deficit will reach nearly $100 billion next year.
He attributed the rise to escalating war costs and reductions in energy purchases from India.
Experts warn that Russian regions face a fiscal crisis, with some having only days of financial reserves left.
Ukraine seeks about $60 billion in external financing over 2026-2027 to cover its deficit and energy needs.

History

Historical Context

The 1998 Russian financial crisis stemmed from declining productivity, a high fixed exchange rate, and the economic toll of the Chechen War, costing Russia $5.5 billion. On August 17, the government defaulted on domestic debt and devalued the ruble, leading to regional instability. Today, President Zelensky cites a projected $100 billion deficit, echoing past vulnerabilities in Russia's economy.

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Story summary

Ukrainian President Volodymyr Zelensky announced on October 19 that Russia's budget deficit will reach nearly $100 billion next year.
He attributed the rise to escalating war costs and reductions in energy purchases from India.
Experts warn that Russian regions face a fiscal crisis, with some having only days of financial reserves left.
Ukraine seeks about $60 billion in external financing over 2026-2027 to cover its deficit and energy needs.

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