Skip to content
Briefings are running a touch slower this week while we rebuild the foundations.See roadmap
Russia-Ukraine War 2026
24APR

Reshetnikov tells Meduza Russia's reserves exhausted

4 min read
11:21UTC

Russia's Economic Development Minister Maxim Reshetnikov told Meduza on 17 April that Moscow's internal reserves are "largely exhausted". The portfolio supposed to produce growth is explaining its absence.

ConflictDeveloping
Key takeaway

Putin called it seasonal; his Development Minister called it structural in the same fortnight.

Russian Economic Development Minister Maxim Reshetnikov told Meduza on Friday 17 April that Moscow's internal reserves are "largely exhausted, and the macroeconomic situation is genuinely significantly more difficult" 1. Businesses had earlier absorbed the shock, he said, "by drawing on internal reserves"; that capacity has run down. Reshetnikov's portfolio runs investment climate and industrial policy. His remit is supposed to produce growth, not explain its absence.

The admission lands two days after Vladimir Putin had publicly demanded government and Central Bank "explain why macroeconomic indicators had fallen short of expectations", blaming "seasonal factors" at a Kremlin meeting on Wednesday 15 April 2. A serving minister calling the constraint structural while his President calls it seasonal is the disagreement Kremlin messaging usually closes within days. Meduza, a Russian-language exile outlet based in Riga, was the only publication Reshetnikov spoke to on the record.

Fortune reported on 18 April that the federal budget deficit reached 3.45 trillion roubles, roughly $42 billion, in January and February alone, already near the full-year target of 3.79 trillion 3. First-quarter oil tax revenue halved year-on-year. Value-added tax rose from 20% to 22% in January. The National Wealth Fund had lost $4.8 billion over the two months preceding the interview ; Reshetnikov's "largely exhausted" is the structural diagnosis of which that drawdown was the quantified symptom. The historical pattern to watch is 1990, when Gosbank governor Viktor Gerashchenko publicly broke with the Politburo line on rouble structural crisis; ministerial contradictions on macro conditions have tended to precede, not lag, hard policy shifts. That precedent is not a prediction, it is a reference point for how quickly the gap between Putin and Reshetnikov's framing closes.

Deep Analysis

In plain English

Russia's Economic Development Minister: one of Putin's own cabinet: told an independent Russian outlet called Meduza that Russia's financial reserves are 'largely exhausted'. This is significant because it is an admission from inside the government, not from Western analysts. Russia spent enormous sums building up savings from oil revenues over two decades; those savings have been used to fund the war. At the same time, the government admitted its plan for the budget was already off-track by April: it had already spent nearly as much as it planned to borrow for the entire year, in just the first two months. Putin publicly blamed 'seasonal factors'; his own minister said the situation was 'genuinely significantly more difficult'.

Deep Analysis
Root Causes

Three compounding structural pressures produced the reserve depletion. Military spending consuming 38-40% of the federal budget crowds out investment that would sustain future revenue. High interest rates (16%) to contain war-driven inflation simultaneously discourage the private sector investment that generates the tax base.

And Q1 oil tax revenue halved year-on-year not primarily because of Ukrainian strikes but because Russia's budget assumption was $59 per barrel while actual Urals averaged $61-65, far below the Iran-war spike that briefly touched $123 per barrel in early April: the April revenue windfall had not yet materialised when Q1 accounts closed.

The VAT increase from 20% to 22% in January 2026 was an admission that oil-linked revenues could no longer carry the budget; it shifted the burden to domestic consumption, compressing household demand in an economy already running structural manpower deficits at the front.

What could happen next?
  • Risk

    If Iran-war oil prices normalise and Urals falls back toward $50-55 per barrel, Russia's Q1 fiscal trajectory implies insolvency of liquid reserves within 12 months, potentially forcing either a ceasefire negotiation or a domestic bond crisis.

  • Consequence

    The Putin-Reshetnikov public contradiction: 'seasonal factors' versus 'largely exhausted': signals fracturing coherence in the Kremlin's economic narrative, which historically precedes policy pivots under Soviet and Russian autocratic systems.

First Reported In

Update #14 · Kyiv's Druzhba gambit unlocks €90bn loan

Meduza· 24 Apr 2026
Read original
Different Perspectives
EU Council / European Commission
EU Council / European Commission
With Orban's veto lifted and Magyar's Tisza government not placing a replacement block, the European Commission is signalling the first 90 billion euro Ukraine loan tranche for late May or early June 2026. Disbursement depends on Magyar's 5 May government formation proceeding to schedule.
Germany
Germany
Russia's Druzhba northern branch transit halt from 1 May removes one of Germany's residual non-Russian crude supply options. The timing compounds Berlin's exposure in the same week Ukrainian strikes drive Russian refinery throughput to its lowest since December 2009.
IAEA / Rafael Grossi
IAEA / Rafael Grossi
Grossi confirmed the Zaporizhzhia Nuclear Power Plant lost external power for its 14th and 15th times within a single week in late April, with the Ferosplavna-1 backup feeder damaged 1.8 km from the switchyard. He was negotiating a further local ceasefire; the previous IAEA-brokered repair lasted less than a week.
Japan
Japan
Japan authorised direct PAC-3 exports to the United States on 30 April, breaking its post-1945 arms export restrictions to replenish Iran-war-depleted US stockpiles. The White House global Patriot export freeze remains in place; Japan's historic policy shift benefits US readiness without reaching Ukraine.
Kazakhstan
Kazakhstan
Russia's Druzhba northern branch transit halt from 1 May cuts Kazakhstan's access to the German crude market. Astana routes most of its export crude through Russian infrastructure, meaning Moscow's unilateral decision directly constrains Kazakh export diversification despite Kazakhstan's stated neutrality on the war.
Péter Magyar / Tisza Party / Hungary
Péter Magyar / Tisza Party / Hungary
Magyar targets 5 May for government formation ahead of the 12 May constitutional deadline. Orbán lifted the EU loan veto before leaving office; Magyar supports Hungary's opt-out but has not placed a new veto, leaving the first 90 billion euro tranche on track for late May disbursement.