Ukraine’s intel says Russia’s budget deficit fuels social unrest in regions

Russia’s budget shortfall is worsening social problems across the country, with delayed salaries, strikes by public-sector workers, and rising utility costs, according to the Ukrainian Foreign Intelligence Service.

“The severe deficit in the state treasury is forcing the Kremlin to direct resources almost entirely toward the war, increasing pressure on public employees, whose wages are either cut or not paid at all under various pretexts,” the report said.

For example, the Arkhangelsk Region operates without federal subsidies and ranks just 80th among Russian regions in terms of living standards.

Last spring, the local transport company OnegaAvtotrans accrued around two million rubles ($24,88) in unpaid wages. Authorities promised to settle the debts and resume operations, but the company continues to face falling passenger numbers, rising costs, and funding shortages.

“Workers staged a strike, but local officials appealed to ‘conscience’ rather than offering concrete solutions. This threatens regional transport disruptions,” the report said.

A shortage of teachers has forced authorities to recruit students as instructors, while salaries in education remain low. In Arkhangelsk, this has sparked widespread complaints among educators.

“Open protests are risky for public-sector workers due to the possibility of being listed as ‘foreign agents,’” the intelligence said.

Meanwhile, residents have received utility bills with unusually high heating charges. Combined with delays in the start of the heating season, this has heightened social tensions.

“According to surveys, ninety-two percent of the Russian population acknowledge severe social inequality, and 75 percent feel it personally. Yet there are no signs of widespread protests or refusal to participate in the war against Ukraine,” the report said.