Internal Russian documents detail estimated cost of war, Zelensky says
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Internal Russian documents obtained by Ukraine revealed the mounting costs Moscow has suffered as a result of its full-scale war, President Volodymyr Zelensky said on May 18, pointing to key indicators of Russia's deepening economic strain.
The estimates, which Zelensky said were presented by acting Foreign Intelligence Service chief Oleh Luhovskyi, show conditions the Kremlin "is trying to conceal both from the world and from their own domestic audience."
According to Zelensky, the first indicator is a reduction in active oil wells, with one Russian oil company reportedly forced to suspend operations at roughly 400 sites.
"Given the specifics of Russian oil production, these are significant losses, as restarting wells in Russia is far more difficult than in other oil-producing countries," Zelensky said.
The second key indicator is a 10% drop in oil refining over just several months in 2026, he added.
"We see that our Ukrainian long-range sanctions are truly effective, and we will continue to scale up this line of our active actions," the president said.
Separately, Zelensky said 11 Russian banks are on the verge of liquidation, while another eight "have accumulated critical issues that can't be addressed without external resources."
Russia's federal budget deficit is now estimated at $80 billion this year alone, which Zelensky called an "optimistic" figure given the near-bankruptcy of many regional budgets across the country.
The Ukrainian president instructed Luhovskyi to share details of Russian attempts to use foreign companies to bypass sanctions, including grain shipments from Russian-ocuppied Crimea and other forms of economic exploitation allegedly involving the U.S.
After GDP growth slowed to 1% in 2025 from 4.9% in 2024, Russia's economy has weakened further this year. The Economic Ministry reported GDP contracted by 1.8% over the past two months.
Russian President Vladimir Putin highlighted sluggish economic performance twice in April. In late March, he also called for what he described as a "return to a path of sustainable economic growth."
