Russia's budget deficit reached 5.8 trillion rubles ($72 billion) through August 2026, driven by high military spending, economic sanctions, and Ukrainian strikes on oil refineries, according to KSE.

An ongoing armed conflict between Russia and Ukraine that was sparked with Russia's annexation of Crimea in 2014 and escalated into a full-scale invasion in February 2022, resulting in widespread casualties, displacement and significant geopolitical consequences for Europe and the world.