In 2023, Russian spending on medicine procurement dropped. Analysts say funds may have been redirected to the war.

In 2023, Russian spending on medicine procurement dropped by 7 percent from the preceding year, according to data cited by RBC. Russian authorities reportedly spent 864.3 billion rubles (about $9.8 billion) on medicine purchases in 2023, a significant decrease from the 929.4 billion rubles (about $10.5 billion) spent in 2022.

Analysts at DSM Group also observed a decrease. According to their calculations, state customers spent 649.8 billion rubles (about $7.3 billion) on medicines in the first 11 months of 2023 — nearly 23 percent less than during the same period of the previous year, when the figure stood at 797.8 billion rubles (about $9 billion).

Meanwhile, Russia’s Health Ministry asserts that in 2023, the volume of state contracts for medicine procurement “not only did not decrease compared to 2022 but, on the contrary, increased by more than 36 billion rubles [about $400 million].” The ministry said that this assessment was based on allocated budget funds and the 36 billion rubles in question could include contracts signed in 2022 with deliveries extending into 2023.

The Russian market research firm Headway Company noted that the biggest decreases in federal purchases in 2023 were for medicines needed by patients with severe illnesses. According to additional information from DSM Group, regional purchases decreased by almost 20 percent.

Analysts gave varying theories as to why Russian spending on medicine procurement may have dropped. Lyudmila Balandina, the head of business development at Headway Company, says the decrease could be due to stockpiling in previous years or the departure of several foreign medications from the Russian market. DSM Group CEO Sergey Shulyak, however, believes that budgetary funds allocated for medicines have been redirected to spending on the Russian army.