section_path: Impacts/Economic impact/Russia
section_name: Russia
paragraph_text: Russia
  
  The Russian economic ministry said that for 2022 the GDP contracted by 2.1% and for 2023 Russia's government said the GDP grew by 3.6%.
  
  A price cap was placed on Russian oil by the Group of 7 (G7) at $60 on 5 December 2022. The United States banned all imports of Russian oil on 8 March 2022. The European Union placed an embargo on oil products from Russia on 5 February 2023. Other countries that embargoed Russian oil included Five Eyes partners Canada, the United Kingdom, Australia and New Zealand. Russia itself issued a ban on foreign diesel sales starting on 21 September 2023, before being lifted on 6 October.
  
  On 27 April 2024, it was reported that Russia was planning increases in personal income taxes and corporate taxes to help pay for the war.
  
  In January 2025, it was reported that, since early 2022, Russia had used a two-prong strategy to finance the extremely large costs of the war. In addition to the official Russian government defense budget —direct financial expenditure for waging the war in Ukraine was estimated at US$250 billion through June 2024 for military spending through normal channels, with the military budget rising to over 20% of annual GDP—an additional off-budget financing mechanism was employed to fund the war with over US$200 billion of debt funding obtained from preferential bank loans made to defence contractors and war-related businesses, loans that had been compelled by the Russian government.