Kathrine Frich
The figure shows how defense has become the Kremlin’s top priority.
The figure shows how defense has become the Kremlin’s top priority.
Russia’s Daily Military Spending Hits $520 Million
Russia is now spending an average of $520 million every single day on its military, a record-breaking figure.
This estimate comes from a new report based on official Russian financial data, analyzed by Janis Kluge of the German Institute for International and Security Affairs.
Military Budget Soars to $94 Billion in Six Months
In the first half of 2025 alone, Russia allocated $94 billion to military spending.
That marks a 30% increase over last year, and a staggering threefold rise since the start of the war in Ukraine in 2022.
The pace and scale of this growth are unparalleled in post-Soviet Russia.
Defense Now Dominates Federal Spending
Nearly 30% of Russia’s total state spending, about $150 billion, has gone to “national defense” this year.
That’s the highest share since the Soviet era.
When spending on internal affairs, security services, and intelligence is included, the figure rises to 40% of the federal budget.
Military Outspends Entire Russian Regions
Daily defense spending has become so large that it exceeds the yearly budgets of some of Russia’s poorest regions.
Areas like Kalmykia and the Altai Republic receive far less annually than the military now gets in a single day.
The scale of this disparity shows the widening inequality within Russia.
Hidden Spending Grows Behind Closed Doors
Almost two-thirds of Russia’s military budget is classified, making it nearly impossible for the public to track how money is being used.
In the first half of 2025 alone, around $59 billion was spent through secret budget lines.
This level of secrecy has grown dramatically since the war began, the report says.
Moscow Plans to Keep Spending, War or Not
Even if peace talks with Ukraine succeed, Russia does not plan to dramatically scale back military spending anytime soon.
One government source told Reuters:
“The production of missiles and drones will have to continue, albeit on a slightly smaller scale. The confrontation will continue.”
Cuts Unlikely Before 2027
While modest reductions could start in 2027, a full return to pre-war defense budgets is seen as unlikely.
Military infrastructure, weapons production, and internal security appear to be locked in as long-term commitments, regardless of diplomatic outcomes.
Economy Feels the Strain as Deficit Grows
This massive spending has started to weigh heavily on Russia’s wider economy.
The federal budget deficit has ballooned to $61 billion, raising concerns about the country’s financial sustainability.
Officials are already warning of a possible recession as pressure mounts.
Tax Hikes and Budget Cuts Loom Elsewhere
To offset military costs, Russia is preparing to raise taxes and cut spending in other government sectors.
These adjustments may affect public services and infrastructure as the Kremlin prioritizes its military and security agenda.
