Yulia Svyrydenko: Ukrainian wide-ranging sanctions are having an economic impact

Internal russian reports confirm the growing strain on the russian economy due to the systematic destruction of its oil and gas infrastructure. Ukraine’s far-reaching sanctions are proving highly effective. russia has already been forced to reduce the amount of oil produced from active wells, while oil refining has fallen by at least 10% in just a few months this year, according to the Security Service of Ukraine. This effect is also confirmed by April export data—russian exports of petroleum products fell by 21% year-over-year (and by 12% compared to March). This was reported by Ukrainian Prime Minister Yulia Svyrydenko.

At the same time, russia’s budget deficit reached USD 75.4 billion over the first four months of this year. This is 50% higher than the annual plan and is the highest figure for similar periods since the start of the full-scale invasion.

According to Yulia Svyrydenko, even the rise in global oil prices due to the situation in the Middle East is unable to solve the problems russia is currently facing as a result of the war it launched against Ukraine. The russian government has significantly downgraded its forecast for russian GDP growth in 2026 from 1.3% to 0.4%.

“Meanwhile, the Ukrainian economy continues to recover despite the war, the consequences of a harsh winter, and constant russian attacks on energy infrastructure. After a decline in the first quarter, Ukraine’s GDP, according to estimates by the Ministry of Economy, Environment and Agriculture grew by 0.9% in April, which significantly mitigated the negative GDP trend for the first four months of 2026—to -0.2%,” emphasized the Prime Minister.

The Prime Minister explained that growth is being driven by domestic trade, the extractive and manufacturing sectors—particularly the defense industry—the production of goods needed for the energy sector’s recovery, and the food industry. Following a challenging February, the recovery began as early as March. Certain sectors are showing growth of over 10%.

“Ukraine maintains economic stability, adaptability, and growth potential. This is confirmed by our partners’ forecasts. According to updated projections, the IMF expects Ukraine’s GDP to grow by 2% in 2026, while the World Bank forecasts 1.2% growth,” emphasized Yulia Svyrydenko.

The Prime Minister expressed her gratitude to every single person who works and produces in Ukraine, working under shelling, in the difficult conditions of frontline regions, and throughout the country. This is Ukrainian resilience in action.