After Putin’s 'victory' claims, Zelenskyy’s office reveals truth about Russia’s economy
Photo: Vladimir Putin, Russian President (Getty Images)
"Optimistic" statements made by Kremlin leader Vladimir Putin at the St Petersburg International Economic Forum sharply diverge from actual indicators, according to a comment from Vladyslav Vlasyuk, the Presidential Commissioner of Ukraine for Sanctions Policy.
Contrast between rhetoric and reality
According to Vladyslav Vlasyuk, Ukraine’s Presidential Commissioner for Sanctions Policy, despite Vladimir Putin’s optimistic statements about expanding economic prospects and resilience, key macroeconomic indicators suggest the opposite.
He argues that the Russian economy is increasingly showing signs of a systemic crisis, which, in expert assessments, is already being compared to a "state in bankruptcy."
Declining revenues and budget deficit
Vlasyuk notes that federal budget revenues in Russia have fallen by roughly 40% year-on-year, even amid high global oil prices. The total budget deficit, according to his data, has exceeded 80 billion dollars.
Additional pressure is also emerging at the regional level: 71 out of 85 Russian regions reportedly ended the previous year with deficits, with their combined negative balance exceeding 34 billion dollars.
Investment and business climate
The report also highlights a sharp decline in confidence in the Russian economy among foreign investors.
The share of foreign capital in Russia is estimated to have fallen to 0.01%, effectively indicating a collapse in external investment participation.
At the same time, conditions inside the business sector are deteriorating: more than 30% of entrepreneurs are considering scaling down or shutting down operations, while about a third are looking at moving into the informal economy.
Among the cited reasons are increased tax pressure and disruptions to internet access. The business activity index has, for the first time since 2022, moved into negative territory.
Financial system and trade
Vlasyuk also points to growing problems in the banking sector, with non-performing loans rising to 12% and an increasing share of cash settlements, suggesting declining trust in the banking system. Against this backdrop, Russia’s Central Bank is reportedly preparing to remove a number of regional banks from the market.
Russia’s foreign trade surplus has also significantly declined — almost threefold since the start of the full-scale war, from 337 billion to 125 billion dollars.
Major export companies are reporting falling revenues, while some state projects are facing funding shortages.
Overall assessment
Vlasyuk emphasizes that, despite public claims about "new opportunities," economic data points in the opposite direction. In his view, sanctions pressure is having a cumulative effect and is gradually limiting Russia’s access to investment, technology, and key markets.
Russian President Vladimir Putin commented on the open letter from Ukrainian President Volodymyr Zelenskyy, saying he reviewed it on the morning of June 5. According to the Kremlin leader, he noted several key aspects contained in the letter.
