Russia in the red: oil revenues halved, deficit rises

According to data from the Russian Finance Ministry, public spending increases (+26%) in the first quarter of 2023, oil & gas revenues collapse (-52%) and the deficit already exceeds the annual target by 17%

The situation of the Russian economy is not easy to interpret. In the forecasts for 2023 there is a growth in GDP, which is 0.7% according to the IMF and 1.2% according to the Russian government, but the real figures are far from positive. According to figures released by Ministry of Finance of Russiain the first quarter of the year revenues from the sale of hydrocarbons collapsed (under the pressure of sanctions), expenses increased (due to the war in Ukraine) and the deficit exploded: the federal deficit from January to April reached 3,424 billion rubles (over $45 billion), which far exceeds the target for the full year set in the Budget law of 2,925 billion rubles.