Russia's economy runs fifth straight budget deficit amid sanctions and Ukraine war

Archived version

• Russia will run a 4.6 trillion ruble budget deficit in 2026, its fifth in a row, due to falling revenue and war spending.
• The VAT rate will rise to 22% next year, and more companies will be forced to pay it to boost revenue.
• Russia plans to borrow 2.2 trillion rubles and scrap tax breaks for small businesses to cover the widening gap.