Russia's 2025 Military Spending Surpasses Planned Budget by Nearly 20%, Ukraine Reports

Report Highlights Significant Increase

According to a recent report from Ukraine's Center for Countering Disinformation (CCD), the Russian Federation's military expenditures for 2025 are projected to be nearly 20% higher than initially planned. This substantial increase means Russia's defense spending is significantly exceeding its approved budget for the year.

The CCD's findings indicate that Russia's total military spending for 2025 is expected to reach approximately 15.9 trillion rubles, equivalent to about $198.8 billion USD. This figure represents 7.3% of Russia's Gross Domestic Product (GDP). The reported expenditure is 2.4 trillion rubles ($30 billion USD) more than what was originally allocated in the federal budget.

Escalating War Costs and Economic Strain

The report further details that Russia is spending an average of approximately 213 billion rubles ($2.7 billion USD) per week on the war against Ukraine. This weekly cost is comparable to the annual budget of a major Russian region. The CCD emphasized that these figures primarily cover expenditures channeled through the Defense Ministry.

Beyond the central budget, Russian regions are also bearing significant financial burdens, covering costs such as:

• Payments to contract soldiers
• Compensation to families of those killed
• Medical treatment for wounded personnel
• Prosthetics
• Burial costs

Kremlin's Prioritization of Military Amidst Economic Challenges

The increase in military spending comes despite a reported budget deficit and declining oil and gas revenues in Russia. The CCD stated that this policy underscores that 'war and imperial ambitions matter more to Putin than the country's economic stability.' In October 2024, Russia's State Duma approved amendments to the Budget Code, allowing federal expenditures to increase by up to 1.5 trillion rubles during the year.

The surge in military spending coincides with a weakening ruble and growing economic pressure on Russia. While President Vladimir Putin publicly acknowledged economic difficulties in June 2025 and did not rule out potential cuts to defense spending, these remarks have not translated into actual policy changes. Some analyses suggest that a significant portion of the additional funds is being directed towards social payments for military personnel and their families, rather than solely strengthening military capabilities. To offset these rising costs, the Kremlin is reportedly planning to increase the tax burden on both citizens and businesses.