According to a report by Moscow newspaper Kommersant, Russia's overall regional deficit is projected to exceed 16 billion euros by the end of 2025, marking an unprecedented figure based on available historical data. This considerable financial strain is linked to the escalating costs of the war in Ukraine, which is taking a significant toll on the national budget. As of the current year, 74 regions are ending with deficits, a sharp increase from 50 regions in 2024.

The analysis highlights significant projected deficits in various areas, including Moscow and the Yamalo-Nenets Autonomous Okrug. The financial challenges being faced by these regions illustrate a broader trend of dwindling economic resources that may hinder regional development and infrastructure projects. The severity of the situation indicates that many regions may struggle to meet even basic funding needs moving forward.

Additionally, the national budget reflects similar issues, with approximately 180 billion euros allocated to military, arms procurement, and security needs, representing nearly 40% of total expenditures. While state subsidies and large contracts have rapidly boosted the arms industry, the overall economic landscape for other sectors remains precarious as the countries grapple with the repercussions of ongoing military engagement and straining fiscal policies.