Russia will dramatically increase the costs of the war against Ukraine. What is known
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Russia will dramatically increase the costs of the war against Ukraine. What is known

Russian army
Source:  Bloomberg

In the draft of the three-year budget of the Russian Federation, military expenses increased sharply. In 2025, 6.2% of GDP is going to be spent on these goals.

Points of attention

  • Russia plans to increase military spending by 6.2% of GDP in 2025.
  • The Kremlin will allocate about 40% of the federal budget next year to the army and other law enforcement agencies, which exceeds the combined spending on education, health care and other social spheres.
  • The draft budget of the Russian Federation also provides for classified items of expenditure, which make up 30% of the estimate, collecting funds from the sale of gas and other revenues.
  • Russia continues to increase spending on the war against Ukraine, despite significant human losses and international pressure.
  • The new staff strength of the Armed Forces of the Russian Federation will be 2,389,130 people, of which 1.5 million are directly military personnel.

Russia will dramatically increase the costs of the war in Ukraine

The most money for military needs will be allocated in 2025, and less in the following two years:

  • 2025 — 6.2% of GDP;

  • 2026 — 5.6% of GDP;

  • 2027 — 5.1% of GDP.

Russia plans to allocate 13.2 trillion rubles for the needs of the Ministry of Defense next year, which is equivalent to 142 billion dollars. In 2024, 10.4 trillion rubles were allocated in the budget for these purposes.

The Kremlin will spend about 40% of the federal budget next year on the army and other law enforcement agencies. This is more than spending on education, health care, social policy and economic support combined.

The Kremlin continues to increase war spending as its forces slowly advance in eastern Ukraine in a war that Western intelligence agencies estimate has caused hundreds of thousands of Russian casualties.

It should be noted that the draft budget also contains classified articles of budget expenditures. They account for 30% of the estimate.

The money is going to be obtained through the sale of gas and "non-oil" revenues. At the same time, the Kremlin hopes to reduce the state budget deficit by 0.5% of GDP.

Putin increased the Russian army

The illegitimate president of Russia, Vladimir Putin, signed a decree to increase the Russian Armed Forces by 180,000 to 1.5 million servicemen.

The German Defense Minister Boris Pistorius had previously warned about the Kremlin's intentions, but he was wrong in his predictions regarding the deadline for the implementation of the decision.

The total staff strength of the Armed Forces of the Russian Federation will now amount to 2,389,130 people. Of them, 1.5 million are military personnel.

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