Russia’s federal budget deficit came in at 2.4 trillion roubles ($28.93 billion) in the first quarter of the year as Moscow spent heavily and energy revenues fell, the finance ministry said on Friday.
In the same quarter of 2022 Russia posted a surplus of 1.13 trillion roubles, but since then significant outlays to support Russia’s military campaign in Ukraine, and Western sanctions on its crucial oil and gas exports, have hit government coffers.
Russia’s overall government income was down 20.8% during the quarter compared to 2022 at 5.7 trillion roubles, led lower by a 45% fall in energy revenues to 1.64 trillion roubles, the finance ministry’s preliminary data showed.
Spending, meanwhile, accelerated 34% to 8.1 trillion roubles. Rising military production and huge state spending have helped keep Russia’s industry buzzing and soften the economic fallout of Russia’s campaign in Ukraine and the impact of Western sanctions.
https://www.nasdaq.com/articles/russia-swings-to-$29-bln-first-quarter-budget-deficit
Russian ruble weakens past 80 vs dollar for first time in almost a year
The Russian ruble fell to a near one-year low past 80 to the dollar on Thursday as lower foreign exchange supplies and capital outflows combined with limited liquidity to outweigh support from relatively strong oil prices.
At 0812 GMT, the ruble was 0.6 percent weaker against the dollar at 80.33, its weakest since April 18, 2022.
Although higher oil prices usually boost the ruble, tighter foreign exchange supplies are hurting the Russian currency. Month-end tax payments that usually see exporters convert foreign exchange revenues into rubles were due last week.
Analysts say capital outflows from Western investors selling assets, wealthy Russians converting rubles and periodic Eurobond payments that require swift conversion into hard currency, are partially behind the ruble weakness.
AC