There is nothing left to patch the “holes” in the budget: Russia has admitted that it has exhausted the last resources of the economy

Russia has exhausted the resources that allowed the economy to demonstrate growth for two consecutive years in the face of war and sanctions.

This was stated by the head of the Bank of Russia, Elvira Nabiullina, at the St. Petersburg International Economic Forum, The Moscow Times reports.

“We grew for two years at a fairly high rate because free resources were involved,” she said.

According to Nabiullina, this concerns the workforce, production capacity, capital reserves of the banking system, as well as money from the National Welfare Fund (NWF), with which the government patched “holes” in the budget and paid for trillion-dollar megaprojects.

“We need to understand that many of these resources are really exhausted,” Nabiullina said.

The unemployment rate, according to Rosstat, has fallen to a historic low of 2.3%, and mass emigration and the conscription of men into the war have caused a shortage of personnel, which the government estimates at 2 million people.

The level of capacity utilization at enterprises, according to Rosstat, exceeded 80%, which was a record in modern history. The liquid assets of the National Defense Fund have decreased threefold since the beginning of the war – to 2.8 trillion rubles. And this stock will be completely exhausted in 2026, experts from the Russian Academy of National Economy and Public Service warned.

As a reminder, the Foreign Intelligence Service of Ukraine (FIS) reports that Russian companies are massively losing their assets abroad amid international sanctions, nationalization, and the breakdown of cooperation with foreign partners.

As reported,the Ukrainian economy can overtake the Russian one thanks to effective governance, US assistance, and global investment.

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