Archive · 7 Oct 2026
Russia’s 2026 Ukraine War Spending Could Reach $200 Billion
Russia is expected to spend much more on its military in 2026 than it first planned.
The spending could reach about $199 billion.
Two people close to the Russian government said the increase followed doubts that talks would produce a peace deal acceptable to Russia.
The government has also increased payments to defense companies and other war-related spending.
This is expected to make Russia’s budget gap larger.
Russia is covering some of the extra cost by borrowing at home and selling gold.
The government’s plans also show high military spending in the next few years.
The article says Ukraine and Russia have continued exchanging attacks.
Russian defense spending is projected to approach 17 trillion rubles, or about $199 billion, in 2026.
That would be roughly 40% above the government’s original budget estimate, according to two people close to the government.
The reported increase followed the Kremlin’s conclusion that peace talks with Ukraine were unlikely to produce an acceptable agreement.
The projected 2026 budget deficit has risen to more than 7 trillion rubles, from an initial forecast of 3.8 trillion rubles.
The government has financed additional spending through domestic borrowing and gold sales; planned military spending remains high through 2029.
- Who
- The Russian government and President Vladimir Putin.
- What
- Russia’s 2026 military spending is projected to approach 17 trillion rubles, about 40% above the original plan.
- When
- The spending forecast is for 2026; the reported increase began after the government reassessed peace prospects in January.
- Where
- Russia; the spending is related to its war in Ukraine.
- Why
- People close to the government said the Kremlin concluded that a peace agreement acceptable to Russia was out of reach.
- Projected 2026 defense spending
- Nearly 17 trillion rubles, or about $199 billion
- Increase over original plan
- About 40%
- Projected 2026 budget deficit
- More than 7 trillion rubles, compared with an initial estimate of 3.8 trillion rubles
- Funding sources cited
- Increased domestic borrowing and gold sales
- Planned 2027 military spending
- 17.1 trillion rubles
- Planned 2028 and 2029 military spending
- 16.6 trillion rubles in 2028 and 16.3 trillion rubles in 2029
- Source for reported spending shift
- Two people close to the government, speaking anonymously because the information is not public