The Russian Finance Ministry announced a significant decrease in oil and gas revenues for November, marking a 34% drop year-over-year. This decline, attributed to sanctions, weak crude prices, and a strong ruble, resulted in 530.9 billion rubles collected in oil and gas taxes. Mineral extraction tax revenue decreased by 36% and export duties by nearly 40%, further contributing to the revenue shortfall. The Urals crude average price also fell to its lowest point since March 2023 at $44.87 per barrel in November, which added to the economic pressures.
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Russia weighs how to prop up Russian Railways, which is $51 billion in debt, sources say.
The sheer scale of the debt is staggering, isn’t it? Russian Railways, a key player in the country’s economy and its biggest commercial employer, is reportedly drowning in about 4 trillion roubles, which translates to a whopping $50.8 billion. That’s a huge sum for a railway network, and it’s forcing the powers that be to scramble for solutions. It makes you wonder how such a seemingly essential service accumulates such a burden. You’d think the efficient transport of goods would be a reliable revenue stream, but clearly, the reality is far more complex.… Continue reading
Russia’s oil ghost fleet circles the oceans as buyers vanish, a situation that paints a grim picture of the current economic reality. It’s becoming increasingly clear that the war in Ukraine is taking a devastating toll on Russia’s financial resources, and the oil trade, a crucial lifeline for the Russian economy, is facing unprecedented challenges. The “ghost fleet,” those tankers supposedly carrying Russian crude, is now navigating increasingly choppy waters, and the primary reason for this is a shrinking market for Russian oil. Many buyers are simply steering clear, whether due to sanctions, reputational concerns, or the simple fact that the economics no longer make sense.… Continue reading
Massive drone attack hits Russia, causing fires in Tuapse and explosions in Kursk and Alchevsk, and that’s a headline that definitely grabs your attention. It’s the kind of news that immediately sparks a flurry of questions and, let’s be honest, a good dose of speculation. When you see reports of a significant drone attack, especially one that hits multiple locations and results in fires and explosions, you know something serious has gone down. The immediate reaction is often to wonder about the extent of the damage, the potential casualties, and, of course, who’s behind it. The “unknown drones” line, as it’s often phrased, always makes you wonder about the possibilities, which often leads to some creative and humorous theories.… Continue reading
Moscow under drone attack for third consecutive night, well, that’s certainly a headline that grabs your attention, doesn’t it? It seems the situation has escalated, or at the very least, become more frequent. The whole “special military operation” narrative, as some put it, is taking on a rather ironic hue when the capital city itself is under attack. The phrase “going according to plan” is certainly being tested, and it’s interesting to see how the narrative adjusts with these developments.
Moscow under drone attack for third consecutive night is generating a range of reactions, and it’s pretty clear people are feeling a whole lot of different things.… Continue reading
The United States imposed sanctions on major Russian oil producers Rosneft and Lukoil, aiming to curb the Kremlin’s oil revenues and pressure Putin to negotiate an end to the war in Ukraine. In response, Putin stated that Russia would not bow to US pressure but acknowledged some economic losses. China and India, major consumers of Russian oil, were reportedly scaling back imports due to the sanctions. While some Russian officials acknowledged potential economic impact, others predicted Moscow would adapt to the new restrictions.
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Fuel shortages in Russia continue to worsen, leading to the implementation of gasoline sales restrictions in a fourth region, with Tyumen and Sverdlovsk joining annexed Crimea and Chelyabinsk in limiting purchases. Gas station chains in these regions have capped sales at 20-30 liters per customer, citing measures to discourage bulk purchases, though some stations are experiencing complete outages. These limitations are attributed to disruptions in fuel supplies, stemming from Ukrainian drone attacks on Russian oil refineries, which have taken out nearly 40% of the country’s refining capacity and caused prices to increase.
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Ukrainian forces reportedly struck the Saratov oil refinery overnight, causing explosions and a fire at the facility, which produces over 20 types of petroleum products and supplies the Russian military. This attack, carried out in cooperation between Ukrainian forces, is part of Kyiv’s escalating campaign against Russian oil infrastructure. The refinery, located in southwestern Russia, has been targeted previously, and its destruction comes as Russia faces a mounting gasoline shortage. While Russia’s Defense Ministry claimed to have intercepted numerous drones, the Kyiv Independent could not verify the claims.
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A significant portion of Russian property developers are facing financial distress, with approximately 20% on the brink of bankruptcy due to declining sales and high interest rates, and the share could exceed 30%. This is exacerbated by low demand, limited state support, and the diversion of resources to the war in Ukraine, resulting in shrinking sales and increasing debt burdens. The real estate sector is experiencing the sharpest deterioration, with a substantial rise in non-performing loans. Russian authorities are considering measures such as a moratorium on developer bankruptcies.
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Russia’s economic growth has sharply decelerated, entering a phase of “technical stagnation” from April-June 2025, according to Sberbank’s head, German Gref. This slowdown, driven by record defense spending, is hampered by weak private consumption and shrinking civilian investment, with the Central Bank expecting near-zero growth in late 2025. Economy Minister Maxim Reshetnikov noted a concerning trend of underutilized factories and cost optimization, along with a July GDP growth of 0.4%, indicating insufficient demand. High inflation and the Central Bank’s key interest rate are contributing to a challenging economic situation, reflecting the limits of Russia’s war-fueled expansion.
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John Q. Hosedrinker 
Matt Underwood