Russia's Cash Reserves Running Dry As Sanctions Bite

Russia’s budget surplus has shrunk significantly in the latest sign that its public finances are feeling the strain from sanctions and the Kremlin shutting off gas supplies to Europe, James Warrington and Riya Makwana reported for UK’s The Telegraph.

Photo Insert: The budget surplus narrowed to 137 billion roubles (£1.9 billion) in the first eight months of 2022, a sharp fall from 482 billion roubles in year-to-date data the previous month.

The budget surplus narrowed to 137 billion roubles (£1.9 billion) in the first eight months of 2022, a sharp fall from 482 billion roubles in year-to-date data the previous month.

Russia’s public finances have been bolstered by soaring energy prices boosting revenues since it invaded Ukraine.

But economists warned Russia’s surplus will likely turn to a deficit in September as government revenues are hit by shrinking energy sales to Europe. Revenues from energy could be squeezed further as gas prices continue to slide.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic