Edith Hejberg
Russia’s war in Ukraine is exacting a heavy toll. Not only in lives lost but in the enormous strain on the nation’s resources.
Vladimir Putin’s war in Ukraine is burning through nearly $857 million every single day. According to Ukraine’s Defense Intelligence (GUR), Russia is now channeling 13.1% of its GDP into the conflict, a staggering 68% of the federal budget. In 2021, that figure was just 3.6% for defense.
The War’s Price Tag Since 2022
From the first shots fired in February 2022 to now, Russia has poured over $1 trillion into the war effort. That works out to $25.7 billion a month and a mind‑numbing $308.8 billion every year.
Where the Billions Go
Almost half of annual spending, about $143.7 billion, is funneled into:
- Military procurement contracts
- Expanding the defense industry
- Buying weapons from North Korea and Iran
- Building military infrastructure and fortifications
Buying Weapons from Allies and Pariahs
Russia has spent $22.3 billion purchasing arms and ammunition from North Korea and Iran alone. This reliance highlights how sanctions have pushed Moscow to source weapons from politically isolated nations.
Keeping the War Machine Running
Direct operating costs for troops in Ukraine, including equipment losses, ammunition use, and fuel, come to $103.6 billion a year. That’s roughly 34% of total war spending.
The Human Price Tag
Nearly 1 million Russian troops are currently mobilized, including 44,300 senior officers. Maintaining this force costs $50.7 billion annually in salaries, gear, bonuses, and compensation for casualties.
Soldier Salaries and Bonuses
Frontline pay is far higher than peacetime wages:
- Senior officers: $4,100/month
- Junior officers: $3,400/month
- Soldiers/NCOs: $2,800/month
Bonuses can run from 400,000 to 2 million rubles, with death payouts of 5 million rubles to families.
Importing “Cannon Fodder”
Moscow has even hired 12,000 North Korean troops to fight, paying Pyongyang more than $525 million plus $60 million in compensation for their casualties. These forces are reportedly deployed in the Kursk region.
Occupying Ukraine Isn’t Cheap
Maintaining control of seized Ukrainian territories costs Russia an extra $10 billion every year, for administration, security, and integration into the Russian system.
An Economy Under Siege
Russia’s economy is showing strain: growth is projected at just 1.3–1.5% in 2025, inflation is running at 9.4%, and the budget deficit hit $47 billion in the first half of the year. Financial reserves are drying up, and even Russian officials are warning that the country is “on the verge of collapse.”
