Putin is preparing Russia for protracted war: military spending could rise by 40%, - Bloomberg
Russia has revised its budget plans and is preparing to maintain a high level of military spending in the coming years. In 2026, spending on the war against Ukraine could reach about 17 trillion rubles, which is approximately 40% more than originally planned.
According to Censor.NET, Bloomberg reports this.
Initially, the Russian budget for 2026 allocated 12.9 trillion rubles for "national defense." However, actual spending on the war could approach 17 trillion rubles—nearly $200 billion.
According to Bloomberg, Moscow decided to significantly increase military funding after hopes for a possible diplomatic resolution to the war failed to materialize.
In early 2026, according to the agency, Russian authorities began to accelerate funding for defense industry enterprises and increase other military expenditures.
Nearly half of federal spending goes to the military
The scale of the increase in military spending was already evident by the end of the first half of the year.
According to Janis Kluge, a researcher at the German Institute for International and Security Affairs, Russia allocated 10.687 trillion rubles to the military and arms production from January through June. This is approximately 30% more than during the same period in 2025.
Military spending accounted for about 43.8% of the Russian Federation’s total federal expenditures in the first half of the year.
At the same time, a significant portion of these expenditures is classified. According to Kluge’s estimate, approximately 7.1 trillion rubles out of 10.687 trillion were allocated to classified budget items.
The Kremlin is planning for high military spending through 2029
The draft Russian budget calls for maintaining significant spending on military needs in the coming years.
In 2027, 17.1 trillion rubles are planned to be allocated for military spending; in 2028, 16.6 trillion; and in 2029, 16.3 trillion rubles.
Thus, even with the planned gradual reduction, spending will remain significantly higher than prewar levels.
Russia is simultaneously increasing its borrowing and drawing on its reserves
Previously, Moscow had planned to curb the growth of military spending, reduce the budget deficit, and replenish reserves that had been depleted by the war.
Instead, the Russian government is now simultaneously increasing military spending, expanding domestic borrowing, and drawing on reserve funds.
Bloomberg notes that Russia's actual spending in 2027 may also exceed the planned level. Sources cited by the agency attribute this to the Kremlin's dimming hopes of reaching an agreement with Kyiv on terms that would satisfy the Russian leadership.
"Putin is raising the stakes," Kirill Rogov, head of the Re: Russia research group, told Bloomberg, commenting on the Kremlin's long-term plans for military spending.
