Putin warned Ukraine war spending unsustainable

Senior officials in Russia’s Finance Ministry and Central Bank have told President Vladimir Putin that the current level of defence spending for the war in Ukraine is financially unsustainable. They warn that projected defence outlays could create a budget deficit of up to three trillion roubles (about $36 billion) this year and an even larger shortfall in coming years, urging cuts in other budget areas before touching the defence sector.

The defence ministry opposes any reductions and is seeking additional funds, arguing that cuts would harm the domestic economy, which relies heavily on military contracts. Russia’s economy is already sliding toward recession, with growth forecast at only 0.4 % in 2026 after a contraction in the first quarter. Record‑high budget deficits and dwindling reserves have heightened concerns about the war’s long‑term fiscal viability.

Recent Ukrainian drone strikes deep inside Russian territory have intensified pressure on the Kremlin, while Ukrainian officials note that internal dissent over the war’s cost could become a threat to the stability of Putin’s regime. The warning highlights growing fiscal strain within Russia as the conflict continues.