The Russian federal government posted a budget deficit of RUB 5.65 trillion in 2025, the largest since at least 1996 and up from RUB 3.47 trillion a year earlier, according to preliminary figures. This marked the fourth consecutive year of fiscal shortfall amid the ongoing war in Ukraine, as expenditures rose 6.8% to RUB 42.93 trillion while revenues increased only 1.6% to RUB 37.28 trillion. Oil and gas revenues totaled RUB 8.48 trillion, down 23.8% from the same period last year, primarily due to lower average oil prices and a widening discount on Russian crude caused by tighter sanctions. By contrast, non-oil and gas revenues rose 12.6% year-on-year in 2025, reaching RUB 24.9 trillion. Thus, Russia managed to stay within its revised budget deficit target of 2.6% of GDP, after the original 0.5% goal was derailed by the weakest oil and gas revenues in five years.