Kathrine Frich
Russia’s war effort is placing growing pressure on the country’s finances.
As military spending rises, concerns are mounting over the long-term stability of the economy.
New reports suggest the Kremlin is now turning to its wealthiest elites.
Closed-door meeting
President Vladimir Putin held a private meeting with leading businessmen following a major industry congress, according to The Bell.
Sources familiar with the discussion said he made clear his intention to continue the war in Ukraine.
“They said: we will fight,” one source said.
Putin reportedly urged large companies to make voluntary contributions to the state budget.
Some oligarchs responded during the meeting.
Businessman Suleiman Kerimov is said to have pledged 100 billion rubles.
Funding proposals
According to The Bell, Rosneft chief Igor Sechin had proposed new ways to raise funds.
This included issuing military bonds to attract investment.
The initiative was described as a way to support the country during a difficult period.
The appeal comes amid a widening budget deficit and rising war costs.
The Gaidar Institute estimates the 2026 deficit could exceed official forecasts.
Early data suggests the gap had already nearly reached annual projections within the first months of the year.
Mounting costs
Military spending remains the largest area of expenditure.
Around 12.9 trillion rubles are allocated for defense in 2026.
Total security-related spending is expected to reach roughly 17 trillion rubles.
Analysts say the strain is becoming increasingly visible.
“The Russian economy has entered the death zone,” said Alexandra Prokopenko of the Carnegie Russia Eurasia Centre.
Another expert warned the budget is already “being torn to pieces.”
Sources: The Bell, Gaidar Institute, Carnegie Russia Eurasia Centre, CEPA
