As a result of the year, the fall in GDP of the aggressor state is observed at the level of 4.5–5%. This is not enough, but since the beginning of the 4th quarter, signs of financial stress in the russian economy have been clearly visible. Since October, russia has started significant withdrawals from the National Welfare Fund to replenish the budget – up to USD 4–5 billion per month. This was emphasized by First Deputy Prime Minister – Minister of Economy of Ukraine Yuliia Svyrydenko during a live broadcast at the National Telethon on December 27.

“We believe that sanctions are a soft tool, but we really want to win this war and use all the tools that can bring our victory closer. Sanctions can have a sufficient effect only in combination with military actions. We can already clearly see the signs of financial stress of the terrorist state. These are withdrawal of funds from the National Welfare Fund to the budget, withdrawal of USD 20 billion from Gazprom through a special tax, and unplanned attraction of funds in the domestic market,” said Yuliia Svyrydenko.

The First Deputy Prime Minister added that by the end of 2023, russian economy would shrink by 5.6%. In particular, the most expected is a collapse in profits from oil and gas exports. Next year, the drop in profits from oil and gas exports could be more than 50% due to the EU embargo on crude oil and petroleum products, the price cap on oil, etc. russia’s revenues are expected to fall below the critical level of USD 40 billion per quarter. Ukraine is working to ensure that the oil price ceiling is reduced to USD 35 per barrel as soon as possible.

“We hope that such measures will make it impossible or significantly complicate the aggression against Ukraine or other states. From our point of view, the sanctions pressure on the terrorist state has several objectives: significant restriction of russia’s economic and technological capabilities to wage war against Ukraine, punishment of individuals involved in the war, as well as preventive measures towards individuals who contribute to the functioning of the criminal regime,” emphasized Yuliia Svyrydenko.