"[The rise in spending] comes as no surprise."

"It's not just about 'retaliatory strikes'. Simply put, more munitions are needed if the goals of the Special Military Operation are to be achieved."

Evgeny Suvorov, chief economist, CentroCredit Bank, Moscow

 

"[The ministry revealed last week that the budget plan would] ensure the provision of necessary weaponry and military hardware to the armed forces, the payment of allowances to military personnel and support for their families, and the modernization of defence industry enterprises."

Finance Ministry press service

A Russian MiG-31 fighter jet flies in the international airspace over the Gulf of Finland, September 24, 2026. Swedish Air Force/Finnish Air Force/Handout via REUTERS/

 

"Russia continues its reckless campaign of hostile actions against NATO allies. It is trying to weaken our resolve and stop our support for Ukraine."

"But Russia is failing. It is failing on the battlefield in Ukraine and it is failing to undermine our unity and support for Ukraine."

NATO Secretary-General Mark Rutte  

On the sidelines of Moscow's invasion of Ukraine, Russia has been teasing and testing NATO member countries, particularly its close East European neighbours in the Baltic region. Estonia has concluded an investigation into an arson attack on August 15 against Milrem Robotics, an Estonian defence manufacturer producing ground drones used by Ukraine. "We can conclude with certainty" stated Estonian Foreign Minister Margus Tsahkna, "that the arson attack ... was an act of sabotage ordered by the special services of the Russian Federation".

 

Milrem Robotics located in the Estonian capital Tallinn, had a fire break out in a building for which it has concluded Moscow's responsibility. "Baseless, absolutely no relation to reality. We cannot and will not take such statements seriously", responded Kremlin spokesman Dmitry Peskov in response. Russia has been repeatedly accused of hybrid provocations since its 2022 invasion of Ukraine. Latvia, Lithuania and Estonia have increased their defence investment as a result. "Moscow is trying to scare Europe into winding down its support for Ukraine. This will not happen", stated Christian Wigand, European Commission spokesman. 

(DMITRY KOSTYUKOV/Getty Images)

 

War is a costly business on all sides. Vladimir Putin is so engrossed in saving Ukrainians from the grip of their 'neo-Nazi' government that despite Ukraine's courageous and effective counteroffensive to the conflict reaching into its fifth year -- discounting Moscow's 2014 annexation of Crimea and much of the Donbas, and the loss on both sides of tens of thousands of military personnel -- he grinds on with his goal. It is Ukraine's vast territory, its agricultural land and natural resources that Putin slavers over.

 

A scarcity of fighting manpower, the cost attendant on firing countless missiles and drones to defeat Ukraine's resolve to meet the challenge its neighbour poses and exit the war intact, has cost Russia dearly. Nothing deters Putin's territorial ambitions. He is prepared to continue pouring more resources -- both manpower and financial -- into the war he has inflicted on Ukraine. Plans are underway at the Kremlin to boost military spending by over 25 percent, even as Ukraine has succeeded in penetrating deeper into Russian territory.

 

Military spending reflecting Putin's new draft budget now stands at 17.1 trillion rubles (some $288 billion) for the coming year. War spending will sit at roughly 35 percent of the country's 48.8 trillion rubles in total expenditures. Moscow has been forced to spend greater sums just on protecting itself even as it relentlessly continues to attack Ukraine's cities, aiming for its electrical grids as winter approaches to once again demoralize Ukrainian citizens left without heat and cooking facilities during its long cold winter.

 

For its part, Kyiv continues its winning strategy of sending missiles and drones further within Russia, targeting oil refineries, logistics hubs and warehouses. Russia must respond to increase costly air defences, and stepped up its attacks on crucial Black Sea ports for Ukraine, and hitting urban centres which it claims are really military depots. Ukraine's targets of Russian oil facilities have caused pain in a gasoline shortage across the country.

 

Russia's air defences, the advanced systems protecting Moscow included, have been tested by large scale drone attacks, courtesy of Ukraine. The massive military casualties that Russia has suffered have failed to translate to progress on the battlefield. Russians now spend sleepless nights in worrying over a new mobilization, with the new parliament back in session, when an overwhelming 'democratic process' voted Vladimir Putin back in power. 

 

Russia plans to spend 17.1 trillion rubles ($202.58 billion) on defense in 2027, around 27% more than the 13.5 trillion rubles originally budgeted and the highest figure since the start of the war in Ukraine in 2022, government documents seen by Reuters showed on Monday.  Reuters