High oil prices and tax hikes aren’t enough to offset war spending and keep Russia’s budget on track

This year’s St. Petersburg Economic Forum turned from a showcase of Russian achievements into a mirror reflecting the problems the full-scale war has created for the country. Officials showed no signs of panic — aside from the usual controlled outbursts. On the contrary, Putin assured investors that the economy was in fine shape and that the slowdown in growth was a deliberate, controlled process. Meanwhile, the budget has begun to feel the effects of the oil price spike and the VAT increase. Bu...