Russia’s oil and gas revenues this month are expected to fall 35% year-on-year, yet another blow to its war economy.
Falling oil prices and a strengthening ruble are behind the decline in the Kremlin’s largest income stream, which provides a quarter of the federal budget, Reuters reported.
Despite sanctions, Russia’s economy has grown, fueled mainly by military spending on the Ukraine war, but that appears to be leveling off. Russian firms are struggling to pay workers on time, a report found, while the government’s borrowing is spiraling, and President Vladimir Putin is raising taxes to boost cash flow.
“Putin and ordinary Russians will face harder choices… between guns and butter,” The Associated Press said.
