Russia Plans $5.5 Billion Reserve Withdrawal to Address 2025 Budget Deficit

The Russian government plans to use 447 billion roubles, or 14% of its remaining liquid fiscal reserves, to cover a sharply increasing budget deficit in 2025, as revealed by Finance Minister Anton Siluanov. This move comes amid a tripling of deficit projections, largely due to persistently low global oil prices and reduced energy revenue expectations. Despite earlier intentions to replenish the National Wealth Fund, the government has shifted strategy and will not adjust borrowing levels or alter the oil price 'cut-off' used to accumulate reserves for the next three-year budget cycle. Siluanov confirmed that no emergency fiscal measures, tax increases, or spending cuts are currently planned, though some economists warn these may be necessary in the future. These decisions highlight Russia's ongoing fiscal challenges, exacerbated by international sanctions, internal economic pressures, and continued military operations in Ukraine.