Zelensky Warns Russia’s $100B Budget Deficit Could Be Offset By Oil Sales

March 16 ------ Russia faces a projected $100 billion budget deficit in 2026, but the shortfall could be covered if sanctions on Russian oil are weakened, President Volodymyr Zelensky said. Speaking to journalists, Zelensky said Moscow has already generated significant revenue from oil exports in recent weeks, highlighting how quickly the deficit could shrink if restrictions on energy sales are loosened.

Oil revenue could offset deficit

According to Ukrinform, Zelensky stated Russia’s projected deficit for the year stands at about $100 billion, but oil income continues to provide the Kremlin with a critical financial lifeline. “For 2026, they had a deficit of $100 billion. This is the projected deficit. But over these 14–15 days, they have earned about $10 billion,” Zelensky noted. “So they can simply cover this deficit if the war continues. And if the sanctions policy is weakened, Russia will earn money,” he added.

The president emphasized that sanctions remain one of the few tools capable of limiting the Kremlin’s ability to finance the war. “If there are no sanctions, then there is only Ukrainian weaponry fighting to prevent the Russians from earning money,” Zelensky concluded.

Strikes on oil sector and defense industry

Zelensky also pointed to Ukrainian strikes targeting Russia’s oil sector and defense industry as measures that have already inflicted economic damage. “Strikes deep inside Russia, especially against the defense industry and the oil sector, have definitely worked. We understand their losses,” he stressed, while cautioning that military pressure alone cannot replace economic sanctions. He added that Kyiv will continue urging Western partners to maintain and strengthen sanctions against Moscow.

Temporary US license for Russian oil sales

The discussion comes after the US Department of the Treasury issued a license allowing the sale of Russian crude oil and petroleum products that had already been loaded onto ships. The authorization permits countries to purchase Russian oil currently “stuck at sea,” with the measure set to remain in force from March 12 to April 11.

Zelensky warned that weakening restrictions on Russian oil exports risks replenishing the Kremlin’s war finances at a time when sanctions pressure remains a key element of Ukraine’s strategy to limit Moscow’s resources.

Source: kyivpost.com