Putin announces plans to cut Russia's defense spending
Russian President Vladimir Putin (Getty Images)
Russia plans to begin cutting its "defense" spending in the near future. Currently, the Kremlin spends roughly 13.5 trillion rubles (almost $172 billion) annually on "defense," including the war in Ukraine, Russian President Vladimir Putin said at a press conference in Minsk.
Specifically, Putin estimated Russia's total gross domestic product (GDP) at 223 trillion rubles. And Russia, he said, spends 6.3% of GDP on the war — which is the same 13.5 trillion rubles.
"A lot or a little? Quite a lot. We've paid for it with inflation," Putin admitted.
At the same time, the president said that Russia plans to cut its "defense" spending. However, he did not specify from which year this would take effect. Instead, he criticized Europe, which, according to Putin, is actively increasing its defense expenditures — a development the Kremlin very much dislikes.
Russian economy on the brink
Meanwhile, the answer to why Putin suddenly spoke about "cutting expenditures" is obvious. The Russian economy is creaking, cracking, and literally falling apart before our eyes. For example, experts estimate that the likelihood of a banking collapse in Russia could become "within reach" as early as April 2026 if the economic situation does not improve.
Reuters, citing its sources, reported that Putin is increasingly worried about problems in Russia's wartime economy. Huge sums are being spent on the war: manpower must be lured with money, losses are high, and sanctions are indeed taking effect.
That is why, in 2025, the Russian authorities conducted a budget sequestration for the first time. Officials in Russia cut "non-military" expenditures — primarily social spending. From here on, the situation will most likely only worsen.
