Russia to Increase Military Spending by a Quarter in 2025 – Bloomberg

Illustrative photo from open sources

The Russian authorities plan to keep military spending at a historical maximum in 2025 and increase it to 13.2 trillion rubles, which is a quarter more than in 2024 (10.4 trillion). This was reported by Bloomberg, citing a draft three-year budget that is expected to be submitted to the State Duma soon.

The planned military spending will amount to 6.2% of Russia's gross domestic product. In the future, it is planned to reduce it slightly – to 5.6% of GDP in 2026 and 5.1% in 2027.

According to the draft budget, expenditures under the items “National Defense” and “National Security and Law Enforcement” should make up about 40% of the total budget expenditures. This is more than the combined expenditures on education, healthcare, social policy and the national economy combined.

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“Secret” budget expenditures, the purpose of which is not disclosed, in 2025 could amount to 12.9 trillion rubles, which is 1.8 trillion more than in 2024, Bloomberg notes. They account for about 30% of total budget expenditures.

Russian authorities predict that oil and gas revenues will fall by 14% from 2024 to 2027. It is expected that in 2025, the oil and gas industry of Russia will bring 10.94 trillion rubles to the budget, which is 3.3% less than in the forecast for 2024.

In the next two years, the draft says, oil and gas revenues will continue to decline and in 2027 will amount to 9.77 trillion rubles. The decrease in revenues will have consequences for the war that Russia is waging.

BAGNET reminds that the draft state budget of Ukraine for 2025 provides 2.2 trillion hryvnia for defense and security.

Prepared by: Sergey Daga