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Russia significantly increases defense budget to continue war in Ukraine

Russia significantly increases defense budget to continue war in Ukraine The Russian Federation significantly increases the defense budget due to the war in Ukraine (photo: Getty Images)

President of the Russian Federation Vladimir Putin has signed the country's budget for the year 2024, significantly increasing federal expenditures, including a record level of defense spending, according to the ISW report.

It is reported that in the federal budget of the Russian Federation for 2024, state expenditures amount to $412.5 billion, with a budget deficit of $9.5 billion. The Russian government plans to spend around $157.5 billion on defense and law enforcement, constituting 39% of all federal government expenditures.

According to ISW experts, in 2023, the Ministry of Finance of Russia allocated $72.1 billion for defense. However, this amount is likely higher, considering that a significant portion of the Russian federal budget is classified.

If the published data is accurate, then more than a third of the federal budget will be allocated to defense, marking a record level of Russian defense spending. It is emphasized that the federal budget does not cover all expenses for the military and security forces, with part of the financial burden falling on regional budgets and private business structures.

According to ISW analysts, the Kremlin plans to allocate a significant portion of its federal budget funds earmarked for defense to support the invasion of Ukraine.

Key findings by ISW:

  • The Kremlin continues to focus on creating favorable information conditions for the upcoming presidential elections in Russia in 2024 and is likely to launch Putin's campaign on December 14 officially.

  • On November 28, Andriy Yusev, a representative of the Main Intelligence Directorate of the Armed Forces of Ukraine, stated that unidentified individuals poisoned the wife of the Chief of the Defense Intelligence of Ukraine, Kyrylo Budanov, Marianna Budanova.

  • On November 28, the Russian authorities arrested at least three more FSB employees in Moscow concerning a bribery case involving 5 billion rubles (55.6 million dollars).

  • Deputy Minister of Defense of Iran, Brigadier General Mehdi Farahi, stated on November 28 that Russia and Iran have completed the operation to purchase Russian aircraft.

  • Russian forces have continued offensive actions in the areas of Bakhmut and Avdiivka, as well as in the western part of the Zaporizhzhia region.

It was previously reported that Russia is facing challenges in selling oil to India due to payment issues in a currency other than the dollar. Analysts believe that this problem does not have a short-term solution.