Oil dripper and Russian pockets: where does the Kremlin get money for the war?

The economy of the aggressor country, Russia, is in an extremely difficult state, forcing the authorities to look for resources directly in the pockets of the population. Instead, Russians themselves have begun to actively withdraw savings from bank accounts for fear of losing them.

This was stated on the air of “Pryamoy” by the executive director of the economic discussion club, Oleg Pendzin.

According to him, the situation in the Russian economy indicates a deep financial crisis, which the Kremlin is trying to mask with the term “cooling off.”

“The latest statement by the head of the Central Bank of Russia suggests that the only source left to cover the budget deficit is citizens’ funds,” the studio guest emphasized, adding that the total amount of money withdrawn from the banking system already exceeds new revenues.

The economist recalled that despite high oil prices, which act as a temporary support, the Russian budget has an actual deficit of three trillion rubles. Even additional profits for oil companies are not able to correct the situation in the long term. Experts compare the current state of Russian finances to a patient in intensive care, whose life is sustained only by external infusions.

As a reminder, public discontent is growing in Russia amid the protracted war against Ukraine, economic hardship, and restrictions on internet access. Vladimir Putin’s approval rating has fallen to 65.6% , the lowest level since the start of the war.

Meanwhile, the economic situation in Russia continues to deteriorate under the influence of sanctions and high interest rates. According to Rosstat, the economy shrank by 1.8% in the first 2 months of the year, and the volume of overdue payments reached $109 billion.

As The Washington Post notes , despite the growing discontent, there are currently no signs of the authorities losing control of the situation, but repression may intensify in response.

It was previously reported that Ukrainian intelligence agencies obtained recordings of telephone conversations between the head of the Central Bank of Russia, Elvira Nabiullina, who in private gave extremely pessimistic forecasts about the stability of the Russian financial system in the coming months. These data differ significantly from the official Kremlin propaganda.

By the way, the leader of the Russian communists, Gennady Zyuganov, has stated that there is a risk of a repeat of the 1917 revolution in Russia amid economic problems and growing discontent. According to him, the Russian economy is rapidly deteriorating, and he called the first quarter of the year a “complete disaster.” Zyuganov called on the authorities to urgently make financial and economic decisions, otherwise the country could face a scenario similar to the events of 1917 in the fall.