Slava Sobetski

Major Russian Exporters Slash Foreign Currency Sales to Record Low

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The Russian financial market is facing a record-breaking deficit of foreign currency from its largest players. According to the Central Bank, in February, the 29 largest exporters cut their net sales of foreign currency by 31%, down to $3.5 billion. This is the lowest figure since the data was first published in November 2022. Compared to February 2025, the volume of currency entering the exchange has plummeted nearly threefold. The “Cheap Oil” Effect The primary reason for this collapse is a time lag: in February, the economy processed payments for December and January, when the price of Russian Urals crude fluctuated between $39–41 per barrel. Economist Egor Susin notes that low export earnings from previous months are now draining the domestic currency market. According to IEA estimates, Russia’s total oil export revenues in February amounted to $9.5 billion, which is $4 billion less than a year ago. Drop in Physical Volumes In addition to pricing, the decline in export volumes has taken a toll. In February, Russia exported an average of 6.6 million barrels per day—the lowest level since early 2022. Oil and petroleum product exports dropped by 850,000 barrels per day compared to January, confirming earlier reports of technological and logistical bottlenecks in the industry. Rublization and Debt Repayment The Central Bank also highlighted other factors for the decrease in sales: For Europe, this is a sign of the increasing fragility of the Russian ruble. When major exporters stop providing a steady flow of hard currency, exchange rate stability relies entirely on administrative interventions.

Russian Coal Companies Lose Over 400 Billion Rubles in a Year

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The Russian coal industry is facing a profound financial collapse. According to Rosstat, the sector recorded a total loss of 408 billion rubles for the past year. With a total output of 429 million tons, every single ton of coal produced resulted in an average net loss of 951 rubles. This makes coal the fastest-degrading sector in the entire Russian economy. Profitability Crash and Rising Debt The financial health of coal companies has become critical. Only one in three enterprises (33.9%) managed to remain profitable, compared to nearly half just a year ago. Profits for successful players were halved, while the losses of failing companies nearly tripled, reaching 484,9 billion rubles. The share of loss-making companies in the sector hit a record 66.1%. The Exchange Rate and the Sanctions Trap The primary drivers of the crisis are Western sanctions, low global coal prices, and a more than 20% strengthening of the ruble. Since nearly half of all coal produced is exported, the “strong” ruble stripped companies of the revenue needed to cover operating costs. Vladimir Korotin, CEO of “Russkiy Ugol,” described the current situation as the “sharpest crisis since the 1990s.” Banking Sector at Risk The industry’s woes are beginning to destabilize the banking system. According to the Central Bank of Russia, the share of bad and non-performing loans in the “metals and coal” category jumped from 2.8% to 7.6%. In an attempt to save the sector, the government has resorted to emergency measures, including tax deferrals and rail subsidies. However, for Europe, this collapse is a prime example of how sanctions and isolation are dismantling entire industrial clusters, turning a once-profitable export resource into a burden on the state budget.

Russian Oil Output Falls for Third Consecutive Month

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The Russian oil industry is losing momentum. In February, average daily production was 390,000 barrels below the OPEC+ quota. According to the cartel’s monthly report, output has declined for the third month in a row amid tightening sanctions and waning demand from key buyers. Production Lows Last month, Russian companies produced an average of 9.184 million barrels per day. This is 56,000 barrels less than in January and marks the lowest level since last August. The last production peak was recorded in November (9.38 million barrels), followed by a steady decline. The Sanctions Noose and the Indian Factor Experts attribute the downturn to increased Western pressure and reduced purchases by India, which continues to demand record discounts. Even temporary waivers from the Trump administration have failed to reverse the production slump. For Europe, this confirms that the Russian “oil machine” is wearing down: the lack of access to Western well-service technologies and freight complications make maintaining previous production levels impossible.

Kremlin Launches Disinformation Campaign to Keep Orban in Power in Hungary

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The Russian Presidential Administration has approved a plan to support the Hungarian Fidesz party and Prime Minister Viktor Orban. According to Financial Times, the Social Design Agency (SDA) has been enlisted to flood Hungarian social media with fakes, memes, and infographics disguised as local content. Manipulations Against the Opposition Leader The campaign aims to portray Orban as a “strong leader” while labeling his main rival, Peter Magyar, a “Brussels puppet.” The situation is critical for the Kremlin: according to Politico polls, Magyar’s Tisza party holds a commanding lead with 48% of the vote, while Fidesz lags at 39%. With elections set for April 12, the 10% gap has remained steady for over six months. A Threat to European Unity For Europe, this intervention is a direct challenge to democratic institutions. Moscow is not merely supporting “friends”; it is attempting to use administrative and technological tools to subvert the will of the Hungarian people. If Viktor Orban retains power through Russian “bot farms,” it would set a dangerous precedent for the entire EU. However, the rising popularity of Peter Magyar suggests that Hungarian society is weary of the pro-Kremlin course and seeks a return to the broader European family, despite the best efforts of Russian propagandists.

Russian Budget Deficit Reaches 3.4 Trillion Rubles in Just Two Months

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The aggressor’s financial system is entering a tailspin. In January-February 2026, the federal treasury recorded a deficit of 3.449 trillion rubles—nearly 1.5 times higher than the same period last year. The Ministry of Finance admits that oil and gas revenues have plummeted by half, to 826 billion rubles, driven by falling prices and forced production cuts. The Budget Gap and Inflation Trap The situation is critical: the state is spending nearly twice as much as it collects in taxes—8.21 trillion compared to 4.76 trillion rubles. Non-commodity revenues formally grew by 4.1%, but in real terms, adjusted for inflation, they actually shrank by 1.6%. In just two months, the deficit has nearly hit the full-year target of 3.78 trillion rubles, casting doubt on the fulfillment of any social obligations. Sequestration for the Sake of War Alexander Kolyandr, a senior fellow at CEPA, notes that the budget has already been “torn to shreds.” For Europe, it is clear that Moscow’s resource base is exhausted. To save the situation, authorities are preparing to sequester civilian spending and alter budget rules to drain what remains of the National Welfare Fund. Since military spending remains untouchable, healthcare, education, and small business support will be “put under the knife.” Russia is finalizing its transition to a self-consuming economic model, sacrificing its own future to sustain continued aggression.

Demand for Evil Eye Talismans in Russia Increases by 120%

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Mass anxiety in Russia is transforming into a fascination with the occult. According to First Data, demand for protective amulets surged by 120% in the first two months of 2026. Over 970,000 esoteric items were purchased on marketplaces, with total spending reaching 312 million rubles. Notably, Russians spend approximately 100 million rubles every month specifically on “evil eye protection.” Aspen Stakes and Zodiac Symbols A literal boom has been recorded in the talisman keychain segment, with sales skyrocketing by 237%. Interest in zodiac-related attributes increased by 213%. The primary audience (66%) consists of women aged 35–45. In addition to amulets, shopping carts increasingly feature incense, wormwood for smudging, and even aspen stakes. Middle Ages as a Refuge from Reality For Europe, this surge in occultism in the 21st century is a clear sign of profound psychological distress within society. When rational institutions and confidence in the future are destroyed, the population of the RF turns en masse to magical thinking. The rising sales of aspen stakes and charms against the backdrop of sanctions and mobilization serve as a diagnosis for the aggressor’s social system: society sees no way out in reality and attempts to shield itself with primitive superstitions.

Utility Shock: Russian Housing Tariffs Hit a 16-Year High

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The utility collapse now has a financial price tag. In January 2026, average housing and utility (HCS) tariffs in Russia surged by 15.02%, the sharpest spike since September 2010. Rosstat data confirms that no region in the country saw an increase of less than 10%, turning January bills into a total shock for the population. Regions Leading the Price Surge In several federal subjects, bill amounts jumped by more than a fifth. The record-breakers include Mordovia (+23.65%), the Kemerovo Region (+22.9%), and the Perm Krai (+20.23%). Hot water prices rose by 16%, cold water by 15.5%, and gas climbed nearly 15%, hitting a 12-year high. A Shift in Public Anxiety According to FOM polls, a record 45% of citizens named rising tariffs as their primary concern in March—a five-year high. For Europe, such dynamics in a major resource-exporting nation look like an outright plunder of its own citizens to plug budget holes. And this is just the beginning: the government has already approved a second wave of increases for October, which will raise rates by another 8–22%. The aggressor’s resource base is depleting, and Russians are now paying for the Kremlin’s ambitions directly out of their own pockets.

Oil Rush: India Snaps Up Monthly Volume of Russian Crude in Five Days Following Washington’s Reprieve

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Indian companies have staged an unprecedented raid on the spot market. In less than a week, they bought up all available volumes of Russian oil sitting on tankers awaiting buyers. According to Bloomberg, total purchases reached approximately 30 million barrels. This is equivalent to an entire month’s worth of imports from the Russian Federation based on February averages (1.1 million barrels per day). Floating Storage Finally Heads to Port The rapid buy-up was made possible because dozens of vessels carrying Russian crude had been drifting in the Asian region for months, serving as floating storage due to sanctions pressure. As soon as the Donald Trump administration issued a temporary waiver for purchases, Indian refineries immediately contracted these volumes. This allowed Moscow to swiftly offload overstocked tankers that had previously struggled to find ports of entry. Temporary Success Amid Strategic Deadlock For European analysts, this spike in activity is a classic illustration of market opportunism. India is cynically using the “Trump Window” to replenish reserves with discounted crude while sanctions are briefly paused. However, this success for the Russian Federation remains localized: once the 30-day waiver expires and the Indian banking sector (including the giant SBI) continues to block transactions, exports risk reverting to unpaid “floating warehouses” once again.

The Toll of an Era: Inflation in Russia Exceeds 900% During Putin’s Rule

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The real cost of living in the Russian Federation has transformed beyond recognition over the last quarter-century. Since Vladimir Putin came to power, consumer prices have surged 10.3-fold. According to calculations by the “To Be Precise” project based on Rosstat data, goods and services that cost just 100 rubles in early 2000 cost approximately 1,033 rubles by the end of 2025. Cumulative inflation over 26 years reached a staggering 930%. Regional Poles of Inflationary Shock The average annual price growth of 9.4% was distributed extremely unevenly across the country. The Yamalo-Nenets Autonomous Okrug felt the impact the least, with prices rising 8.1-fold. At the other extreme was the Ulyanovsk Region, where the cost of living skyrocketed 13.4-fold—one-third higher than the national average. Similar critical situations were recorded in Ingushetia (13.3-fold), as well as the Kaluga and Kursk regions (12.8-fold). The Price of “Stability” Through a European Lens For Europe, where price stability is the foundation of the social contract, these RF figures represent a chronic devaluation of citizen welfare. While state propaganda focuses on external threats, the internal resources of the population are being eroded by unprecedented price hikes. This “invisible confiscation” of income explains why, despite formally high GDP figures, the real standard of living in Russian regions continues to degrade, making the aggressor’s economy increasingly fragile.

Digital Curtain: Moscow Begins Large-Scale Testing of “White List” Internet

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Free internet in the Russian capital is becoming a thing of the past. Authorities have launched extensive testing of a “white list” system, where users can only access state-approved resources. According to “Kod Durova” sources, testing has already affected public transport: on certain lines of the Moscow Metro, it is now impossible to access even Telegram via the free Wi-Fi. District Isolation and the Capital as a Testing Ground Connectivity restrictions in Moscow have been ongoing for about a week. RBC sources confirm that the Ministry of Digital Development has moved from regional trials to blockages in the capital. Telecom operators have received orders to limit access to websites not included in the “approved list” in specific city districts. This marks a shift from blocking specific prohibited sites to a model of total isolation, where everything not officially permitted is forbidden. The Chinese Path and the End of Digital Openness For Europe, the implementation of “white lists” is final confirmation that the Russian Federation has chosen a path of digital authoritarianism modeled after China. While the country’s economy stagnates and healthcare spending is slashed, the state is investing massive resources into creating a “sovereign RuNet.” This policy deprives citizens of access to independent information and transforms the internet from a space of opportunity into a tool of total control, further severing Russian society from the global information sphere.