Ukrainian President Volodymyr Zelenskyy has warned that Russia is under significant economic strain as it faces a $ 100 billion budget deficit.
According to Zelenskyy, the deficit cannot be plugged by the ongoing war in the Middle East, citing that Russia has currently managed to offset only approximately 10%.
Additionally, the Ukrainian president noted that the conflict in the Middle East is strengthening Russia and depleting Europe’s energy reserves.
“Russia is in big trouble with its economy. A short war in the Middle East cannot plug a $100 billion budget deficit. So far, they have managed to offset only about 10% of it. The war in Iran strengthens Russia, exhausts the United States, and depletes Europe’s energy reserves,” Volodymyr Zelenskyy stated during an interview with the United News telethon.
Zelenskyy argued that the increased tension by the Russians creates pressure on other countries, including China, which acts as a mediator on the stand to take.
Additionally, the Ukrainian president noted that the war in Iran will lead to broader aggression far beyond the Middle East region.
Further, he claimed that the conflict in Iran is also constraining Ukraine’s access to air defense systems.
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Russia’s Projected Budget Deficit
According to Finance Ministry data released in early April 2026, Russia had a deficit of 4.6 trillion rubles, approximately $ 58.8 billion, in the first quarter.
The deficit in the first quarter had surpassed the projected deficit for the entire year by a gap of 48.6 billion dollars.
Russia recorded a $34.2 billion increase in its budget deficit in 2025. Total revenues fell by 8.2% to $109.2 billion, while expenditure rose by 17% to $169.7 billion.
In the energy sector, revenue from oil and gas plunged sharply by 45% to $18.4 billion. By contrast, non-oil tax revenue grew by 7.1% to $90.8 billion.
Despite the deficit, Reuters reported that Russia’s primary oil tax revenue is set to double to $9 billion in April, as the Kremlin aims for a total of 7.9 trillion rubles in mineral extraction taxes in 2026.
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Disruption in the Strait of Hormuz due to the ongoing conflict between the United States, Israel, and Iran resulted in an oil price hike affecting the Brent prices in Russia.
Currently, Russia is resorting to parallel imports and drawing down from the National Wealth Fund to maintain military expenditure amid sanctions.
In contrast to the ongoing economic challenges in Russia, Zelenskyy has affirmed that Ukraine has 200 very strong defense companies, 30 of which are ranked among the top worldwide.
Ongoing partnership deals in Ukraine are underway to continue boosting and maintaining economic stability, according to Zelenskyy.
