The Russian government is planning to allocate a record 32.5% of its 2025 budget to defense, a sharp increase from this year’s 28.3%, as it continues its war efforts in Ukraine. The draft budget proposes setting aside nearly 13.5 trillion rubles (over $145 billion) for defense, reflecting a $32 billion rise compared to 2024. This increase comes as the war in Ukraine approaches its third anniversary and strains both Russian and Ukrainian resources.
The war, Europe’s largest since World War II, has caused significant economic stress on both sides. While Ukraine continues to receive substantial financial and military aid from Western allies, Russia’s larger and better-equipped forces have been pushing back Ukrainian troops in eastern regions.
However, the war has also strained Russia’s economy. Earlier in September, Russia’s central bank raised its interest rate to 19% to curb high inflation, which stood at 9.1%. The central bank aims to reduce inflation to 4% by 2025. The draft budget predicts defense spending will decrease in 2026, though changes could occur during the legislative process.
In addition to financial strains, Russia’s military has grown in size. On Monday, President Vladimir Putin signed a call-up order for 133,000 conscripts as part of the autumn draft, following an earlier order to expand military personnel by 180,000, bringing the total to 1.5 million.
Meanwhile, Russian missile and drone strikes continue in Ukraine, with over 1,000 Shahed drones launched in September, a record since the invasion began. In response, Ukraine has ramped up its drone capabilities, with over 100 Ukrainian drones shot down over Russia on Sunday.
Putin marked the second anniversary of the annexation of four Ukrainian regions — Donetsk, Luhansk, Kherson, and Zaporizhzhia — reiterating his claim that Russia’s military actions are meant to protect residents and secure the future for coming generations. However, these annexations have been widely condemned by Western nations as illegal.
The war continues to shape geopolitical dynamics, as Russia increases its defense spending and Ukraine seeks sustained support from its Western allies.
