Ukraine's foreign minister says Russia's economy has "dramatic problems" and the West could finish it off

Andrii Sybiha, Ukraine's Minister of Foreign Affairs, has drawn attention to the fact that the Russian economy is facing significant challenges and called on Western countries to ramp up sanctions pressure on Russia, outlining how this can be achieved.

Source: Andrii Sybiha on X (Twitter); European Pravda

Details: Sybiha said the data shows that Russia's economy is beginning to face some "dramatic issues" as it goes into recession.

He cited a number of economic indicators to support this claim, saying that Russia's federal budget deficit reached a record US$54 billion from January to November and is on course to exceed US$70 billion by the end of the year.

For the first time since the start of Russia's full-scale invasion, the consolidated deficit of Russia's regions has reached minus US$1.5 billion, compared to a surplus of US$12 billion last year.

In addition, Russia's energy revenues are declining. In November 2025, oil and gas revenues fell by 34% compared to November 2024. This alone reduced Russia's budget by US$3.5 billion.

Sybiha added that Moscow has been forced to raise taxes, including a highly sensitive increase in VAT, and cut subsidies for small and medium-sized businesses.

The minister emphasised that sanctions pressure on Russia must continue to intensify, as there is "a real possibility of making the cost of continuing the war unbearable for the Kremlin".

"He [Putin – ed.] does not count the thousands of soldiers he kills every day to gain additional square metres of Ukrainian territory. However, he keeps track of the money that belongs to him personally and his cronies. The G7, the EU and the United States still have a lot of leverage they can use. Only 20% of the entire Russian military-industrial complex is currently sanctioned. Restrictions must be applied to the rest," Sybiha explained.

He said that Russia must be deprived of any access to technologies it uses to produce instruments of terror, and all loopholes for sanctions evasion must be closed.

"Russia's energy revenues can and should be reduced further," Sybiha insisted.

He stressed that the EU has taken serious strategic steps to reduce its dependence on Russian oil and gas, and that now "it is time to end its reliance on Rosatom".

"The EU should continue imposing tariffs and other trade restrictions to further cut imports from Russia and replace them with other sources. Personal sanctions must be tightened as well. Together, we absolutely can stop the Russian War Machine by running it out of fuel," Sybiha emphasised.

Background:

• Bloomberg has reported that the United States is preparing sanctions against Russia's energy sector should Putin reject a potential peace deal.
• Olha Stefanishyna, Ukraine's Ambassador to the United States, said that a bipartisan bill has been introduced in the US Senate that would impose sanctions on the purchase or facilitation of imports of Russian oil and petroleum products.
• EU countries are discussing a number of new measures against Russia's shadow fleet in order to further restrict its ability to circumvent oil sanctions.

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