Russia’s Budget Deficit Shrinks Sharply Buoyed by Rising Revenue

Russia saw a sharp decline in its budget gap as non oil-revenue rose more than the Kremlin expected, offsetting a collapse in its proceeds from commodity exports.

The fiscal deficit shrank in September by 660 billion rubles ($6.6 billion) to just 1% of Russia’s gross domestic product, according to Finance Ministry data published late Friday. Russia saw a surplus for the second straight month, according to Bloomberg calculations.

Sweeping sanctions, imposed by western countries in an attempt to limit the Kremlin’s ability to fund its war machine, have dealt Russia’s key revenue source — oil and gas exports — ...