Russia’s Budget Deficit Hits 90% as Putin Pressures Oligarchs for Cash.

Putin’s Appeal to the Business Elite

According to TSN.ua: Facing a severe financial crisis fueled by the war in Ukraine, Vladimir Putin has turned to Russia’s wealthiest businessmen, asking them to make direct donations to the state budget. This unprecedented request comes after the country’s budget deficit for January and February 2026 exceeded 90% of the annual forecast, signaling a dramatic shortfall in public finances.

A key driver of this fiscal strain is a massive 42% surge in Kremlin military spending, which has reached 13.1 trillion rubles. During a meeting with business leaders, the possibility of providing financial support to the state was discussed. Dmitry Peskov, the Kremlin spokesperson, noted that

“one of the meeting participants indeed said that he considers it necessary to allocate a very large sum of money to the state”

Oligarchs Respond and New Taxes Emerge

Among those who answered the call, billionaire Suleiman Kerimov expressed willingness to contribute 100 billion rubles. Metal magnate Oleg Deripaska also agreed to the 'proposal.' As part of the country’s fiscal strategy, the following measures are being considered:

• raising VAT to 22% for small and medium-sized businesses;
• introducing a 10% windfall tax on large corporations;
• potentially imposing another windfall tax later this year if the ruble weakens further.

The state’s financial situation and the business community’s response to government demands highlight the tough economic conditions Russia faces as the conflict in Ukraine continues.

Putin’s appeal to businesses and the planned tax hikes point to deep-rooted economic problems, worsened by wartime spending and international sanctions. With the budget deficit growing, the government must find new funding sources, which could hit small and medium enterprises hard and reshape Russia’s overall economic climate. If these trends persist, rising social tensions and public discontent may follow.