Ukraine’s Strikes Drive Russian Regions into Bankruptcy, Zelenskyy Claims

President Volodymyr Zelenskyy’s Address

According to ХВИЛЯ: In his evening address on May 18, President Volodymyr Zelenskyy highlighted a sharp deterioration in Russia’s economic situation, attributing it to international sanctions and long-range Ukrainian strikes. He specifically pointed to:

• the shutdown of oil wells;
• a 10% loss in refining capacity;
• a federal budget deficit;
• regional bankruptcies.

Zelenskyy noted that Russian oil companies are being forced to halt drilling operations, delivering a severe blow to their economy.

“This is even more significant. The nature of Russian oil extraction is such that this is the most painful blow for them.” - Volodymyr Zelenskyy

He reported that Russia’s federal budget deficit for the first five months of the year has already exceeded Moscow’s annual target, and a large number of Russian regions are now effectively bankrupt.

“Right now, a significant number of their regions are in a state of bankruptcy, and Putin is leading Russia toward bankruptcy. The various schemes they come up with to raise money won’t help them.” - Volodymyr Zelenskyy

Escalation of Ukrainian Long-Range Strikes

The president also announced a major increase in Ukrainian long-range strikes, noting that while previously there were dozens per day, now there are hundreds. He additionally revealed that new operations have been coordinated with the Security Service of Ukraine (SBU) and the Defense Forces.

“There are matters that need replacement and correction in the diplomatic corps. We will address all of this in the coming weeks.” - Volodymyr Zelenskyy

These statements underscore the severity of Russia’s economic woes, which could have far-reaching consequences for its internal stability and ability to sustain military operations. The drop in oil output and regional bankruptcies reflect the mounting economic pressure from sanctions and battlefield losses. At the same time, the intensification of Ukrainian strikes signals Kyiv’s readiness to maintain its military campaign and strengthen its position on the front lines.

The ongoing economic challenges faced by Russia are further compounded by Ukraine's intensified military actions. As President Zelenskyy emphasizes the impact of long-range strikes, it's crucial to consider how these developments correlate with recent strategic assessments regarding Moscow's vulnerability. For a deeper understanding of the situation and insights into Ukraine's diplomatic maneuvers, read more about the recent strike on the Moscow region.