Russia Cuts Pensions and Maternity Benefits as War Costs Rise

Russia plans to cut social spending by seven percent in 2027, including pensions, veteran payments, and maternity benefits, while raising military spending to a record 17.1 trillion rubles, according to government documents seen by Reuters. The budget cuts for education and health are six and 6.8 percent respectively, with Moscow doubling its 2026 deficit forecast to 3.2 percent of GDP and planning tax hikes on metal and mining firms to cover costs. Separately, NATO rejected a Russian warning over Kaliningrad as "irresponsible nuclear rhetoric," after Moscow threatened to use its full arsenal if the alliance attempts to isolate the exclave, which borders Poland and Lithuania.