Sanctions imposed on only 20% of entire Russian military-industrial complex - FM Sybiha

The Russian economy is starting to face some "dramatic problems", entering a recession, sanctions are working and pressure should continue to increase, Ukrainian Foreign Minister Andriy Sybiha has said.

"The Russian budget is in the red, and it is time to increase sanctions pressure. Now there is a real opportunity to make the price of continuing the war unbearable for the Kremlin. The data shows that, despite the efforts of the Russian government to mitigate the impact of sanctions, the Russian economy is starting to face some dramatic problems, entering a recession," he said on X.

In particular, the minister noted that in January-November the deficit of the Russian federal budget reached a record $54 billion, and by the end of the year it may exceed $ 70 billion.

For the first time since the beginning of the full-scale Russian invasion, the consolidated deficit of Russian regions reached -$ 1.5 billion, compared to last year’s surplus of $12 billion.

The Foreign Minister stressed that Russia’s energy revenues are declining. Oil and gas revenues in November 2025 fell by 34% compared to November 2024, and this alone reduced the Russian budget by $3.5 billion. Thus, Moscow is forced to raise taxes, including "a very sensitive increase in VAT, as well as reduce subsidies for small and medium-sized enterprises, which leads to a further recession and a strengthening of the shadow around its endemically corrupt economy," Sybiha said.

"While the Russian population becomes poorer and more vulnerable, Putin’s allies continue to profit from the war. By refusing to stop his brutal and senseless aggression against Ukraine, Putin is plunging Russia, which was once a prosperous economy with a high standard of living, into a deep recession worse than the one it experienced in the 1990s," the minister said.