Kathrine Frich
As international envoys push for a possible path to peace, Moscow’s financial plans tell a very different story.
Russia’s newly approved 2026 budget points toward a state preparing for prolonged confrontation, even as diplomatic meetings intensify.
According to RBC Ukraine, citing the Ukrainian Center for Combating Disinformation, the financial blueprint reflects a strategic choice that sets war planning above domestic welfare.
Expanding war spending
RBC Ukraine reports that nearly 40% of federal spending next year is designated for the military and security agencies, a level the outlet notes has not been recorded since Soviet times.
Analysts quoted by the publication say this commitment makes clear that the Kremlin is not preparing for a rapid end to hostilities.
The shift comes as Russia confronts falling oil and gas export revenues under sanctions.
The same reporting indicates that the budget carries a deficit of about 1.6% of GDP, reflecting weaker income streams.
To compensate, authorities have reduced allocations for social support. RBC Ukraine says the share devoted to social programmes has dropped to 25%, the lowest portion seen in roughly twenty years.
Costs for households
The fiscal plan raises VAT to 22% and introduces new fees targeting both individuals and companies.
Economists cited by RBC Ukraine argue that these measures will hit small businesses especially hard, limiting their profit margins and access to cash.
The outlet’s reporting suggests that ordinary Russians will carry much of the burden, facing higher taxes alongside shrinking welfare provisions.
Analysts quoted by the publication believe the Kremlin sees battlefield spending as a higher priority than economic stability.
They add that “the prolonged war remains the Kremlin’s main priority, even at the cost of economic degradation and the impoverishment of its own population.”
Kyiv’s preparations
Ukraine has outlined its own 2026 budget, allocating 2.8 trillion hryvnias, around 70 billion dollars, for defence.
Officials say the plan includes a 200-billion-hryvnia reserve to respond quickly to shifting military needs.
Diplomacy continues alongside financial planning. US special envoy Steve Witkoff is expected to meet President Vladimir Putin on December 2 to discuss potential avenues toward ending the conflict.
EU foreign policy chief Kaja Kallas has said the coming week could be decisive for shaping long-term peace.
Sources: RBC Ukraine, Digi24
