Russia Faces Serious Financial Difficulties in Funding War Against Ukraine: Bloomberg

Russia is increasingly facing serious financial difficulties in funding its war against Ukraine, which limits the Kremlin's ability to prolong the conflict without economic repercussions, as reported by Bloomberg.

According to sources in the publication, the Russian government is preparing to exceed the planned budget deficit in the event of further increases in military spending. Russia is currently seeking up to $15.71 billion in additional revenues to maintain the deficit within the projected 1.6% of GDP.

The situation is exacerbated by decreasing revenue from energy exports, pressure from sanctions, and the strengthening of the ruble, which reduces budget revenues from oil and gas.