Russia's Defense Spending Set to Decline Amid Ongoing Conflict

Russia's national defense budget is projected to slightly decrease in 2026, based on draft budget materials submitted to the parliament. However, sources indicate that this allocation could be increased should the conflict's demands intensify.

The documents reveal planned defense spending of 13 trillion roubles ($157 billion) in 2026, marking the fifth year of Russia's invasion of Ukraine. Although this is an increase from preliminary figures, it remains below the current year's peak of 13.5 trillion roubles.

With 84% of the defense budget classified, actual spending may vary, and increases could be swift if active warfare necessitates. The Finance Ministry recently proposed raising VAT to fund military expenditures amid efforts to address the budget deficit.

(With inputs from agencies.)