Russia escalates strikes on Ukrainian missile factories as war costs strain budget

Russia has stepped up attacks on Ukrainian facilities that produce rockets, targeting sites it describes as strategic threats to its own missile technology development. The intensified strikes aim to hinder Ukraine's progress in advanced rocket systems.

At the same time, senior Russian finance and central‑bank officials have warned President Vladimir Putin that the war’s expenses are pushing the federal deficit to unsustainable levels. Defense spending now accounts for roughly 40% of the state budget, with projected shortfalls of several trillion rubles in 2026 and beyond. Proposals to cut military outlays have met resistance from the defence ministry, which argues that reductions would harm the economy and the enterprises that depend on military contracts. The finance ministry has asked for broader spending freezes, but the war finance gap continues to widen.