Since the beginning of 2022, Russia has seen an unprecedented increase in its military spending. Indeed, the Russian government plans to allocate 32.5% of its spending to defense in 2025, a record amount up from 28.3% this year. This substantial increase reflects Moscow’s focus on the prevalence of the war in Ukraine.
The government’s draft budget proposes to allocate just under 13.5 trillion rubles (over $145 billion) to national defense. This is about three trillion rubles ($32 billion) more than what was allocated to defense in 2024, a previous record.
Since the start of the conflict in Ukraine, Europe has witnessed one of the largest clashes since World War II, straining the resources of both sides. As Ukraine receives billions of dollars in aid from its Western allies, Russia’s better-equipped and more numerous forces have been steadily pushing back Ukrainian troops in parts of the country’s east.
Meanwhile, Ukrainian President Volodymyr Zelensky recently visited the United States to seek continued financial and military support from Western allies as the war approaches its third anniversary in February.
However, Russian President Vladimir Putin also faces the challenges of sustaining his war effort as military spending puts considerable strain on the Russian economy. Recently, Russia’s central bank raised its key interest rate to 19% to combat high inflation, raising the prospect of further increases to bring inflation down to 4% in 2025.
Despite these efforts, the draft budget calls for a reduction in defense spending in 2026. However, the budget is still subject to changes during three readings in the State Duma, the lower house of Russia’s parliament, before being submitted to the Federation Council and signed by the Russian president.
At the same time, Putin signed a mobilization order for 133,000 conscripts as part of the upcoming fall military contingent, a standard measure for seasonal conscription campaigns. He also ordered the military to increase its strength by 180,000 soldiers to a total of 1.5 million, with the total military personnel standing at about 2.4 million.
Russia launched missiles and drones on 11 Ukrainian regions overnight, the Ukrainian military reported Monday. The strike marked the 33rd consecutive night of airstrikes behind the front line, setting a new monthly record for drone strikes..
Iranian Shahed drones have been increasingly used by Russia in its aerial bombardments of Ukrainian cities, replacing more expensive missiles. In September alone, more than 1,300 Shahed drones were launched over Ukraine, marking the highest number of drone attacks in a single month since the war began.
For its part, Ukraine has been developing a new generation of drones for long-range strikes deep inside Russia. More than 100 Ukrainian drones were shot down over Russia on Sunday, according to Russian authorities.
While the situation on the ground remains tense, Putin reiterated in a video released to mark the second anniversary of the annexation of four Ukrainian territories that Russia continues to defend the people of the occupied regions and ensure a prosperous future for generations to come.
Rising military spending and ongoing tensions between Russia and Ukraine continue to raise complex questions about the future of the region and international stability. It is essential for the actors involved to seek diplomatic solutions and work together to achieve a peaceful resolution to the conflict.