Russia's War Costs: Putin's Expensive Campaign

Russia plans to increase its defense budget to 17.1 trillion rubles (over 177 billion euros) for 2027, a 27 percent rise from earlier projections, according to Reuters, citing government documents. The move signals Moscow's continued prioritization of the war in Ukraine despite rising costs. Defense spending is set to jump 41 percent from 2025 to 2026, with related "national security" spending rising to 4.3 trillion rubles. Russia will officially allocate 43.8 percent of state expenditures to defense and security, equaling 8.5 percent of GDP, with the budget deficit forecast raised to 3.2 percent. To fund the war, Russia has raised VAT to 22 percent, plans new taxes on securities and mining profits, and will increase utility prices by 11 percent in 2027. State debt is projected to reach 21.7 percent of GDP, while no public uprising is evident, and Putin has increased troop strength to 1,550,500 soldiers.