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Russia dedicates half its state budget to war in Ukraine

Russia dedicates half its state budget to war in Ukraine Photo: Russian dictator Vladimir Putin (Getty Images)

For the first time since the full-scale invasion of Ukraine, Russia has spent half of its federal budget revenues on the war, according to the Center for Countering Disinformation.

Since the start of the full-scale invasion, every second ruble coming into Russia’s federal budget has gone toward funding the military and purchasing weapons.

In the first quarter of 2025, military spending accounted for 50.1% of budget revenues, and in the second quarter, 48.2%.

According to calculations, in just the first half of the year, the Kremlin spent more than 8.4 trillion rubles, or $105 billion, on the military — 31% more than last year and three times higher than in 2022.

At the same time, spending far outpaces revenues: from January to June, the budget collected 17.6 trillion rubles, or $220 billion, while 21.3 trillion rubles, or $226 billion, were spent.

"Rising military expenditures are depleting the budget, increasing the deficit, and cutting funding for social needs. The Kremlin is effectively prioritizing war over economic stability and the welfare of its own citizens," the Center for Countering Disinformation explained.

Russia's economy

It is worth noting that yesterday the Russian government itself acknowledged that economic growth has stalled. Reports indicate that over the past six months, growth rates have slowed elevenfold, entire sectors have slid into recession, and even the defense industry has lost momentum.

This was partly driven by falling oil revenues due to sanctions, with the budget deficit reaching 4.9 trillion rubles in July — the highest level in more than 30 years.

Earlier, Reuters, citing sources, also reported that Russian dictator Vladimir Putin is increasingly concerned about the state of Russia's economy amid the war.