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Sybiha stated that Russia’s budget is running a deficit and that the economy has entered a recession, stressing the need to increase the effectiveness of sanctions. “Russia’s budget is in deficit, and the possibility of making the cost of continuing the war unbearable for the Kremlin is real,” he said.

According to Sybiha, despite Russia’s efforts to mitigate the impact of sanctions, the country is facing serious economic problems. He noted that Russia’s federal budget deficit reached $54 billion between January and November and is expected to exceed $70 billion by the end of the year.

The minister added that, for the first time since the start of the full-scale invasion, the total budget balance of Russian regions fell to minus $1.5 billion, compared to a $12 billion surplus last year.

Drawing attention to the decline in energy revenues, Sybiha said: “Russia’s oil and gas revenues in November 2025 fell by 34% compared to November 2024, which alone wiped $3.5 billion off the Russian budget.”

Sybiha said Moscow has been forced to raise taxes, including VAT, and cut subsidies for SMEs, deepening the economic contraction. He added that while the Russian public is growing poorer, Putin’s inner circle continues to profit from the war.

Arguing that sanctions are effective, Sybiha said the transatlantic sanctions policy implemented since 2022 is strategically sound and deprives Russia’s war machine of resources.

He emphasized that the G7, the European Union and the United States still have significant pressure tools, noting that only 20% of Russia’s military-industrial complex is currently under sanctions.

Sybiha called for fully blocking Russia’s access to technology, closing loopholes used to evade sanctions, and further reducing energy revenues, adding that after steps taken to reduce dependence on Russian oil and gas, dependence on Rosatom should also be ended.