If we are to believe Russia, the economy has never been better, and the war against Ukraine is merely a minor bump in the road with no significant impact on the bigger picture. However, the reality appears to be quite different, with more and more reports of problems emerging; now, TT (via the Financial Times) reports that the costs of the war are expected to exceed the budget by $28 billion.
A full 40% is estimated to be earmarked for military operations, and Finance Minister Anton Siluanov is now urging the government to cut spending on other areas, such as welfare. However, this is not expected to be enough, and the Russian newspaper Kommersant reports that Siluanov has said further budget cuts will likely be necessary.
Since the war against Iran began, oil prices have skyrocketed, as is well known, which has meant that Russia has received more money for its oil. However, this has not been enough to cover the costs, and the country continues to bleed and deplete its resources, a situation that has recently led Russia to begin selling large quantities of gold.