Russia military spending rises sharply despite budget targets

Russia's military spending is increasing significantly, surpassing previous government targets for stabilization or reduction. According to data from the Russian Budget Monitor analyzed by economist Janis Kluge, military expenditures rose by 30 percent in the first half of 2026, reaching 10.7 trillion rubles (approximately 107 billion euros).

These defense costs accounted for 4.7 percent of the expected annual GDP by the end of June. If current trends continue, arms spending could exceed 9 percent of Russia's GDP by the end of the year, potentially setting a post-Soviet record. This surge contradicts earlier promises from Defense Minister Andrey Belousov to stabilize or cut military budgets.

The rapid growth in defense spending places significant pressure on the Russian state budget, diverting funds away from infrastructure, social services, and civilian investments. This shift toward a war-oriented economy impacts long-term fiscal stability and limits political maneuvering room.