- The Kremlin has been warned that Russia cannot sustain its war in Ukraine at the current pace, with finance officials urging a reduction in spiralling defence spending.
- Russia's finance ministry anticipates a significant budget overrun, with Finance Minister Anton Siluanov projecting at least $28bn over budget this year and further overspending in future years.
- Siluanov has proposed freezing around $40.8bn in non-war-related spending and warned that Russia's financial reserves are not infinite.
- Despite two-fifths of the budget being allocated to defence and security, analysts caution that Russia's apparent economic growth is illusory and the war is likely to be economically unsustainable.
- Ukraine's intensified strikes on Russian energy infrastructure are significantly impacting the economy, affecting a quarter of refining capacity and creating risks of fuel shortages.
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