Missiles instead of healthcare: Russia spent 22 annual health budgets on war
Photo: Vladimir Putin, Russian leader (Getty Images)
Since early 2022, Russia's aggression against Ukraine has cost Russian taxpayers $550 billion. The Kremlin is financing the war at the expense of its own population, according to the Foreign Intelligence Service of Ukraine.
As the intelligence service reported, $550 billion is equivalent to 24 annual federal budgets for higher education in Russia or 22 annual healthcare budgets.
At the same time, the Kremlin keeps a significant share of its military spending secret, with 59% of the defense budget classified.
"Over the first three quarters of 2025, spending under open budget items amounted to 4.816 trillion rubles ($61.18 billion), while closed items reached 7.038 trillion rubles ($89.37 billion). On a year-on-year basis, the classified portion of spending increased by 39%," the Foreign Intelligence Service said.
How Russians finance the war
Intelligence officials explained that the Kremlin is shifting the burden of war financing onto the population through new taxes and rising prices. In conditions where any anti-war criticism is punished as treason, space for public outrage has disappeared. Between 2022 and 2025, prices in Russia rose continuously.
Gazprom offset the loss of European markets by relying on domestic consumers. As a result, average utility costs rose by 43%, with an additional increase of about 14% already announced for next year.
Fuel prices increased by 29–35%, and this trend is expected to continue in 2026. Russia’s real estate market saw prices rise by 50% between 2022 and 2025. Further increases of 6–7% are forecast for 2026, and up to 20% in Moscow.
The sharpest increases were recorded in food prices. Dairy products rose by 62%, while meat prices increased by 41%. Forecasts for 2026 point to further price hikes of tens of percent.
In this context, even holiday spirits are low: 54% of Russians are frustrated by gifts associated with personal growth and a healthy lifestyle.
Russia's war spending
Earlier, the Foreign Intelligence Service of Ukraine reported that Russia’s spending on the war has nearly quadrupled since 2021.
At the same time, Russia spends 1.32 trillion rubles (about $16.6 billion) on the war every month. A total of 39% of Russia’s overall expenditures go toward aggression against Ukraine.
