Russian budget deficit narrows to $42 bln after slight surplus in May

Russia recorded a marginal budget surplus in May to slightly rein in its deficit for the first five months of the year to 3.41 trillion roubles ($41.9 billion), the finance ministry said on Tuesday.

Russia recorded a marginal budget surplus in May to slightly rein in its deficit for the first five months of the year to 3.41 trillion roubles ($41.9 billion), the finance ministry said on Tuesday. In Jan-May 2022 Russia posted a surplus of 1.59 trillion roubles, but significant outlays to support its military campaign in Ukraine and a barrage of Western sanctions on its oil and gas exports have hit government coffers since then.

Soaring defence spending has kept Russia's industrial sector ticking along, spawning forecasts for economic growth this year and helping Moscow to plough on with its military campaign in Ukraine.