Bloomberg: Moscow Has Implemented Strict Austerity Measures
1- 27.08.2026, 21:31
- 2,896
Russia has run out of free liquidity.
The Russian budget is coming under increasing pressure due to spending on the war against Ukraine. Despite the recent rise in oil revenues, Moscow has exhausted its liquidity and is shifting to a regime of strict austerity, cutting funding for “non-priority areas.”
This is reported by Bloomberg.
The article states that Russian authorities began cutting budget expenditures after facing a liquidity shortage: in April, the federal treasury account posted a negative balance of 5.5 trillion rubles.
According to the agency, Finance Minister Anton Siluanov warned Prime Minister Mikhail Mishustin about the risk of a shortage of funds to make government payments on time.
Following the April liquidity crisis, Russian authorities cut funding for “non-priority” areas by 35%. Government agencies were also instructed to prepare for a possible 15% reduction in staff.
In addition, officials were advised to postpone non-urgent expenditures and defer projects whose implementation is not critically necessary.
At the same time, the spending cuts have virtually no impact on areas that the Russian regime considers strategic. First and foremost, this refers to funding for the war. Also protected are payments to the military, public sector employees, social spending, payments to the regions, and servicing the national debt.
Liquidity problems are occurring against the backdrop of a significant increase in Russia’s budget deficit. It has already reached 6.5 trillion rubles, or about 2.8% of GDP. This is significantly higher than the previously set target of 1.6% of GDP.
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