Russia faces US$28 billion shortfall in this year's war budget, report says

Russia's spending on the war against Ukraine could exceed the amount allocated in this year's budget by at least RUB 2 trillion, or US$28 billion.

Source: Financial Times

Details: Citing a document reviewed by the newspaper, Russia's Finance Ministry estimated in February that wartime overspending of RUB 2 trillion (US$28 billion) could rise to RUB 4 (US$56 billion) trillion under a "negative scenario". The ministry reportedly expects a similar level of overspending in 2027 and 2028.

The newspaper reported that, amid rising military expenditures, Russian Finance Minister Anton Siluanov asked the government to freeze RUB 2.9 trillion (US$40.6 billion) in spending on other areas as early as this year. By 2028, that figure could increase to RUB 7.1 trillion (US$99.4 billion).

The FT noted that despite allocating RUB 16.84 trillion (US$235.8 billion) – nearly 40% of the federal budget – to defence and security, Russia's budget deficit reached RUB 5.9 trillion (US$82.6 billion) during the first four months of the year, the highest level since the start of Russia's full-scale invasion of Ukraine.

Background:

• The Russian Federation's federal budget deficit increased to one and a half times the level planned for the entire year.
• Russia's federal budget spending on military-related items reached a record RUB 11.85 trillion (US$165.9 billion) in January–September 2025.

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