Vladimir Putin's ongoing war in Ukraine is leading to severe economic challenges for Russia, with projections of a widening budget deficit and military spending pressures. Recent data shows Ukraine retaking territory, while Crimea faces fuel shortages, reflecting the conflict's impact on both nations. The Kremlin grapples with internal disagreements over defense spending cuts as fiscal pressures mount.

• 01Russia's budget deficit is projected to reach three trillion rubles (£31 billion) due to high defense expenditures.
• 02Ukraine's military has regained 282 square kilometers (109 square miles) of territory in May, marking a shift in the war's momentum.
• 03Crimea is experiencing significant fuel shortages, prompting local authorities to urge calm amid long queues at gas stations.
• 04Disagreements within the Kremlin are emerging over whether to cut defense spending, with some officials advocating for increased military funding.
• 05Russia's economy is nearing recession, with GDP growth expectations reduced to 0.4% for the year.

The economic strain from the war is leading to budgetary pressures that could affect public services and military funding in Russia.