Russian finances get shakier despite short-term bonus from Iran war
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Russia has found it increasingly hard to finance its ballooning spending, driven largely by military expenses and the war against Ukraine.
PHOTO: NANNA HEITMANN/NYTIMES
Ivan Nechepurenko
- Russia briefly benefited from high oil prices due to the US-Israeli war against Iran, but this boost was short-lived and prices have since fallen back.
- Russia faces a growing budget crisis with a US$75 billion (S$96.9 billion) deficit in the first half of 2026, driven by high military spending and war costs.
- Oil and gas revenues dropped over 22 per cent compared to 2025, and experts warn the temporary revenue rise in Q2 will not prevent further financial challenges ahead.
AI generated
MOSCOW – As a major producer of oil and gas, Russia has been one of the few countries to benefit from the US-Israeli war against Iran, which constricted global fuel supplies and sent prices to peaks unseen in years.
But that windfall has proved limited and short-lived.
