The Russian economy has effectively reached a standstill, with Moscow financing its war against Ukraine by draining domestic resources and sacrificing the civilian sector, Ukraine’s presidential representative on sanctions policy, Vladyslav Vlasyuk, told Kyiv Post on Friday.Vlasyuk said the key factor shaping Russia’s economic outlook is the sharp decline in oil and gas revenues – the Kremlin’s primary source of funding.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official.“From January to May, Russian budget revenues from oil and gas remained 30% lower than a year earlier. Even favorable external conditions and temporary price spikes did not help,” Vlasyuk said.He added that tensions around the Strait of Hormuz briefly pushed global oil prices higher, lifting Russia’s export revenues above $20 billion per month. However, the effect faded almost immediately once maritime traffic resumed.According to Vlasyuk, MarineTraffic data showed shipping through the strait recovering rapidly. While no vessels passed on June 17, 10 tankers departed and 11 entered on Monday, and by Thursday, 17 tankers had left the Persian Gulf.The recovery in logistics quickly eased pressure on global markets and drove oil prices lower.As of Friday, Russian Urals crude had stabilized at $58.83 per barrel, Vlasyuk said.“In the 2026 budget, the Kremlin set oil at $59 per barrel, but that assumption was overly optimistic. The budget deficit in the first half of 2026 reached 6 trillion rubles [$77 billion], which is 60% higher than the entire annual target,” Vlasyuk said.