Russia's oil and gas exports, crucial for its economy during the Ukraine war, have sharply declined due to new sanctions from the US and EU. This revenue drop has forced President Putin to borrow from banks and raise taxes, straining the war economy amid inflation and slowing growth. Sanctions on major oil companies and a ban on Russian fuel by the EU have further pressured Russia's finances. Despite some temporary revenue recovery through a 'shadow fleet', the overall economic outlook remains bleak, with potential implications for the war's intensity.