Russia's Finance Ministry is preparing to raise funds from state-controlled banks to help finance a widening wartime budget deficit after struggling to sell government bonds on the open market, analysts said.
On Thursday, the ministry registered two new issues of floating-rate federal loan bonds (OFZs): one worth 500 billion rubles ($6.45 billion) maturing in 2037 and another worth 1 trillion rubles ($12.90 billion) maturing in 2042.
Analysts at VTB said the move indicates the ministry is preparing to arrange large, pre-agreed bond placements with major banks, primarily state-owned lenders, which have traditionally been the main buyers of floating-rate OFZs.
The shift comes as Russia's budget deficit reached nearly 6 trillion rubles ($77.40 billion) in the first half of the year, driven by record military spending, while rising borrowing costs have made it increasingly difficult for the government to raise money through conventional bond auctions.
The Finance Ministry has frequently relied on large placements of floating-rate bonds during periods of fiscal pressure. In November 2025, when budget conditions deteriorated sharply, it raised 1.7 trillion rubles ($21.93 billion) through such bonds, followed by another 2 trillion rubles ($25.80 billion) in December 2025.
