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Zelensky Says Russia Faces Near-$100 Billion 2026 Budget Gap as Moscow Moves to Raise Taxes

Kyiv cites intelligence pointing to deeper shortfalls than Russia’s draft budget shows.

Overview

  • President Volodymyr Zelensky projected Russia’s deficit will approach $100 billion next year, up from about $71 billion he said was indicated a month earlier.
  • Russia’s draft budget estimates a smaller shortfall of roughly 5.8 trillion rubles (just over $70 billion), highlighting a sharp divergence from Ukraine’s assessment.
  • Planned revenue measures include lifting value‑added tax from 20% to 22% and slashing the simplified‑tax threshold for small and medium‑sized firms to about $120,000, with Finance Minister Anton Siluanov warning of higher prices and pressure on businesses.
  • Budget plans shift resources away from social and regional programs toward the military‑industrial complex and security agencies, reflecting defense’s outsized claim on spending.
  • Reports detail fuel shortages linked to Ukrainian strikes on refineries, while Zelensky said unconfirmed intelligence suggests India may be buying less Russian energy and pledged fuller analytics in November.