Bloomberg: Russian officials warn that funding the war is becoming increasingly difficult to sustain

Russian officials in the financial sector have raised an alarm regarding the impact of the war in Ukraine on the state budget, warning that the situation is becoming unsustainable. According to documents obtained by Bloomberg, the Ministry of Finance and the central bank are calling for a reduction in spending, including on defense, while military structures are requesting the maintenance or increase of the budget, citing the economy's dependence on the war industry. Russia is facing weak economic growth and a major budget deficit, estimated to reach up to three trillion rubles for this year.

Additionally, the budget deficit has risen to 5.9 trillion rubles in the first four months of the year, exceeding the annual plan by 50%. Finance Minister Anton Siluanov emphasized the need for a reduction in spending, while a senior parliamentarian expressed concern over the risks of hyperinflation. In the context of diminishing hopes for a quick solution in Ukraine, Russian officials are facing increasingly significant financial challenges.