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ISW: Vladimir Putin reveals Russia's military budget is $172 billion.

Kremlin continues to downplay social and economic costs of Ukraine war and inflated military spending

Jun 28, 2025 11:53 781

ISW: Vladimir Putin reveals Russia's military budget is $172 billion.  - 1

The Kremlin continues to downplay social and economic costs of Ukraine war and inflated military spending.

This is stated in the daily analysis of the Institute for the Study of War (ISW).

Putin said that Russia's military budget currently amounts to 6.3% of GDP, or 13.5 trillion rubles (about $172 billion).

In addition, Moscow plans to steadily reduce defense spending from 2026 onwards.

Russia significantly increased its defense budget by 25% between the federal budgets for 2024 and 2025 and in 2025 is increasing its investment in the Russian defense industry.

Putin's statements are likely intended to portray the Russian government as committed to social and civilian spending and to downplay recent indicators of the social and economic consequences of Russia's war against Ukraine and the corresponding prioritization of investment in the military-industrial sector.

Putin also repeated the Kremlin's narratives aimed at discrediting Ukraine and blaming the West and NATO for its decision to invade Ukraine.

Open-source data suggests that Russia is increasingly investing in its defense industry and expanding its capabilities for the production of unmanned aerial vehicles, infantry fighting vehicles (IFVs), and aircraft and shipbuilding.

These are some of the key platforms that Russia is likely to rely on in a future war with NATO.

Russia's continued efforts to expand the production of unmanned aerial vehicles have more immediate impact on the front lines in Ukraine, although Russia will continue to benefit from expanded drone production capabilities during any future conflict.

The Russian armed forces continue to introduce tactical innovations that match the technological advances in weapons systems.

Moscow continues to use chemical weapons against Ukrainian forces and civilians in direct violation of the Chemical Weapons Convention, to which Russia is a signatory.