Bloomberg: Putin's Window Of Opportunity Is Narrowing

• 1.02.2026, 10:47

The Kremlin is unable to prolong the war because of the deficit in the budget.

Russia is facing increasing financial difficulties in financing its war against Ukraine. Amid negotiations, this narrows the Kremlin's options to drag out the war without economic consequences.

Russian dictator Vladimir Putin is facing a "narrowing window" to reach a peace deal in Ukraine, writes Bloomberg.

The publication's sources say the Russian government is preparing to exceed its planned budget deficit if military spending rises again. Russian officials are worried that budget spending will again exceed the planned level this year and are trying to find new sources of revenue of up to 1.2 trillion rubles ($16 billion) to balance a key budget figure.

"This is equivalent to an additional 0.5% of gross domestic product over and above the planned deficit for this year of 1.6% of GDP against the backdrop of declining revenues from energy sales and the impact of the artificial strengthening of the ruble," the publication's source explained.

It is noted that the price of Russian Urals oil remains below the budgeted price, while the ruble exchange rate is significantly stronger than forecast. Under such conditions, revenues from oil and gas may be more than 2 trillion rubles less than expected, which will deepen the deficit.

At the same time, the authors of the material emphasized that Moscow sees little chance of a breakthrough in the peace talks.

"Although Russian and Ukrainian military delegations are clarifying technical details related to the implementation of any potential ceasefire, disputes over territory require political decisions at the leadership level," the article said.

The journalist also noted that Russia's fiscal situation could worsen further as US sanctions force oil producers to cut already low oil prices.