Putin Raises War Spending to Record $199 Billion

Russian President Vladimir Putin has increased military spending for the war in Ukraine to a record $199 billion this year, a 40% rise from the original budget plan, signaling his readiness for continued escalation. The increase came after Putin concluded in January that peace talks with the U.S. were unlikely to yield an acceptable deal, prompting accelerated advance payments to the defense industry and other war-related spending. The projected budget deficit has grown to over 7 trillion rubles, financed through domestic borrowing and gold sales. Military expenditures are planned at 17.1 trillion rubles for 2027, easing slightly in subsequent years, though actual spending may exceed targets. Putin has also warned of potential conflict with Europe, citing military exercises and statements about Kaliningrad, while denying plans to attack the continent.