Russia faces US$28bn shortfall in this year’s war budget, report says

Russia's spending on the war against Ukraine could exceed the amount allocated in this year's budget by at least RUB 2 trillion, or around US$28 billion.

Source: Financial Times

Details: The FT has reported, citing a document reviewed by the newspaper, that Russia's Finance Ministry estimated in February that wartime overspending of RUB 2 trillion (around US$28 billion) could rise to RUB 4 trillion (US$56 billion) in a "negative scenario". The ministry is reportedly expecting a similar level of overspending in 2027 and 2028.

The newspaper reported that amid rising military expenditure, Russian Finance Minister Anton Siluanov has asked the government to freeze RUB 2.9 trillion (US$40.6 billion) in spending on other areas as early as this year. That figure could increase to RUB 7.1 trillion (US$99.4 billion) by 2028.

The FT noted that despite allocating RUB 16.84 trillion (US$235.8 billion) – nearly 40% of the federal budget – to defence and security, Russia's budget deficit reached RUB 5.9 trillion (US$82.6 billion) during the first four months of the year, the highest level since the start of Russia's full-scale invasion of Ukraine.

Background:

• The Russian Federation's federal budget deficit has increased to one and a half times the level planned for the entire year.
• Russia's federal budget spending on military-related items reached a record RUB 11.85 trillion (US$165.9 billion) in January-September 2025.

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