Russian President Vladimir Putin has signed off on a historic defense budget for 2025, allocating a massive $126 billion (13.5 trillion rubles) to military spending, representing 32.5% of the government’s total expenditure. This marks a $28 billion increase from the previous record set this year.
The newly approved budget, published Sunday, includes projections for a slight decrease in defense spending for 2026 and 2027. Russian lawmakers in both parliamentary chambers have given their approval.
The protracted war in Ukraine, now approaching its third year, has deeply impacted both nations. The conflict, Europe’s largest since World War II, continues to sap resources, with Russia currently advancing at key positions along the front lines while Ukraine conducts counteroffensive operations, particularly in the Kursk region.
Mounting Challenges for Both Sides
Russia, with greater access to weapons, ammunition, and personnel, faces growing economic pressures. Inflation is climbing, labor shortages are impacting industries, and the Central Bank raised interest rates to 21% in October to address an overheating economy.
Ukraine, while receiving billions in aid from Western allies, remains at a disadvantage in terms of manpower and resources. On Monday, Germany pledged over $684 million (€650 million) in military assistance, including advanced air defense systems like the US-made Patriot missile system. German Chancellor Olaf Scholz made the announcement during his first visit to Kyiv in over two years.
Speaking alongside Ukrainian President Volodymyr Zelensky, Scholz reiterated his support for Ukraine’s sovereignty and urged Russia to end the war and withdraw its forces. The visit follows criticism of Scholz for speaking directly with Putin last month, breaking an informal European diplomatic stance of isolating the Russian leader since the full-scale invasion in 2022.
Recruitment and Material Losses
Despite its larger population, Russia faces difficulties replenishing its forces. A prior partial mobilization led to widespread domestic backlash, with hundreds of thousands fleeing the country to avoid conscription.
In addition to deploying its own troops, Russia has reportedly received support from North Korea. Ukrainian officials have claimed that 11,000 North Korean soldiers are present in Kursk, and a significant portion of Russia’s ballistic missiles used in the war this year are of North Korean origin.
