This is reported by The Wall Street Journal.
The publication notes that the opening months of Russia’s invasion of Ukraine last year drove an increase in oil and natural-gas prices that brought a windfall for Moscow. Those days are over.
With the war now in its second year and Western sanctions becoming increasingly severe, Russia's government revenue is shrinking and its economy has shifted to a lower growth trajectory, likely for the long term.
The country's largest export, gas and oil, have lost major customers. At the same time, the ruble is down over 20% since November against the dollar.
The labor force has shrunk as young people go to the front lines or flee the country in fear of being drafted. Uncertainty has curbed business investment.
"Russia’s economy is entering a long-term regression," predicts Alexandra Prokopenko, a former Russian Central Bank official who fled the country shortly after the invasion.
Russian billionaire Oleg Deripaska warned this month that Russia is running out of cash.
Most Russian gas flows to Europe stopped, and after an initial jump, global gas prices fell sharply. Moscow now says it will cut its oil production by 5% until June from its previous level. It is selling its oil at a discount to global prices.
As a result, the government’s energy revenue fell by nearly half in the first two months of this year compared with last year, while the budget deficit deepened, the journal says.