Russia Caps Cash Outflow at $11,900 per Person Amid Soaring Budget Deficit

Russia has introduced a new 1 million rubles ($11,898) cap on cash carried by travelers to neighboring countries.The cap applies to travel from Russia to Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, with Armenia, Belarus, Kazakhstan and Kyrgyzstan as members of the Russian-led Eurasian Economic Union (EAEU).JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official.The Moscow Times reported that Russian President Vladimir Putin signed the relevant decree on Tuesday.Exceptions are only applied to travel through “government-designated international airports,” diplomatic missions, and those with bank authorizations, the outlet said.The cap, mirroring similar measures in March 2022, days after Moscow launched its full-scale invasion of Ukraine, is around one-tenth of the previous cap of $100,000 introduced in March this year, as noted by The Moscow Times.Businesses are also banned from moving any amount of cash out of the country under the new decree, as reported by Russian outlet Kommersant.Violations risk having the entire sum confiscated.Russia’s cash-strapped economyThe measure comes as Russia faces a major budget deficit as the war intensifies, with prospects for peace talks remaining bleak.Russia’s overall budget deficit is expected to reach 2.2% in 2027, or 5.5 trillion rubles (around $70 billion), according to the country’s draft budget cited by a think tank report.Ukraine is also facing a stark forecast in its 2027 budget planning, with the deficit expected to rise to 15% of its GDP, or Hr.1.67 trillion ($37 billion), according to the KSE Institute. Other Topics of Interest Russia Keeps Pounding Kyiv in Daytime After Overnight Strike – Supermarket Hit, Debris Near Embassy DTEK says 8,000 Kyiv households regained power after damage to energy infrastructure in the overnight attack. In 2027, Russia planned to boost defense spending to a record 17 trillion rubles ($203 billion) – or around 35% of Russia’s total federal expenditures next year.According to government documents seen by Reuters and figures cited by The Moscow Times, the planned spending is about 27% higher than the 13.5 trillion rubles ($161 billion) previously projected for defense in 2027 and roughly 32% above the 12.9 trillion rubles ($153 billion) allocated in the 2026 budget.Combined with the “National Security” category – which covers spending on the Interior Ministry, National Guard and security services – Russia’s security and defense apparatus is expected to consume 21.4 trillion rubles ($253 billion), or 43.9% of total spending, in 2027. Kyiv Post is Ukraine’s first and oldest English news organization, reporting since 1995. Its international reach – 97% of readers are outside of Ukraine – make it truly Ukraine’s global voice.