Russia taps into reserves to cover growing budget deficit

“Throughout the year, based on projections provided by the Ministry of Economic Development, we are utilizing 447 billion rubles (approximately $5.48 billion) from the National Wealth Fund,” Siluanov told reporters.

The minister noted that, due to fluctuations in oil prices, officials have revised the budget forecasts but are not planning to resort to excessive spending or borrowing.

Forecasts suggest that Russia’s budget deficit in 2025 could rise from 0.5% to 1.7% of GDP.

The core fiscal principles approved by President Vladimir Putin are expected to remain in place and unchanged until 2030. As of April 1, 2025, the liquid assets of Russia’s Sovereign Wealth Fund amounted to 3.2 trillion rubles ($39.2 billion).

For context, Gazprom – a once-mighty state corporation that had ambitions of reaching $1 trillion in market capitalization – recorded the largest loss in its history in 2023, losing more than 1 trillion rubles.