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flag Russia’s 2026 budget deficit may nearly triple due to falling oil revenues from reduced Indian purchases and sanctions.

flag Russia’s budget deficit could nearly triple by year-end 2026, reaching 3.5%–4.4% of GDP, due to a sharp drop in oil revenues driven by reduced Indian purchases, persistent Western sanctions, and steep discounts on Russian crude. flag Energy income fell to 393.3 billion roubles in January—the lowest since 2020—while total budget revenues are projected 6% below plan. flag A stronger rouble and declining global oil prices further eroded dollar-denominated tax income. flag Despite 4.1 trillion roubles in fiscal reserves, analysts warn they may be depleted within a year. flag The European Union is preparing its 20th sanctions package, potentially targeting Kyrgyzstan over suspected sanctions evasion and expanding restrictions on Russia’s oil exports, financial sector, and dual-use goods.

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