Russia decided to increase war spending after Putin’s meeting with Trump in Alaska, Bloomberg reports
Vladimir Putin ordered a sharp increase in spending on Russia’s war against Ukraine in late 2025, Bloomberg reported. The trigger, according to sources, was his August 2025 meeting with U.S. President Donald Trump in Alaska.
Right after the meeting, Putin hoped peace talks would conclude within the following year, meaning a major increase in the war budget would not be necessary, according to the sources. By January, however, the Kremlin had concluded that a deal with Ukraine would not be reached, and the government began sharply increasing spending.
Russia’s defense spending could reach 17 trillion rubles by the end of 2026, two sources close to the government told Bloomberg. That figure exceeds the 2025 plan by 40% and is effectively equal to the record 17.1 trillion rubles budgeted for 2027.
A year ago, authorities had planned to slow the growth in military spending in 2026 and begin rebuilding reserves depleted during the war, Bloomberg said.
Next year, actual military spending could again exceed the plan, said Bloomberg economist Ekaterina Vlasova:
The government is finally budgeting for a prolonged war in Ukraine — but still understates its cost. Keeping nominal defense spending flat looks difficult as the war of attrition drags on and military-production costs rise.
Sources for journalist Farida Rustamova had earlier offered a different explanation for the rise in military spending in Russia’s 2027–2029 budget. One official involved in drafting the budget said the trigger was Ukraine’s attacks on oil refineries and storage facilities. The attacks peaked in spring and summer, when the three-year budget draft was being prepared, he said.
At Meduza, we are committed to transparency about our use of artificial intelligence in the newsroom. The story you’re reading was written by one of our living, breathing journalists and translated from Russian using an AI model configured to follow our strict editorial standards. This translation process is the result of extensive testing and refinements to ensure our English-language coverage is timely and accurate. A Meduza editor reviews every draft before publication.
If you find any errors in this translation, please contact us at [email protected].
To read Meduza’s exclusive content in English, please subscribe to our newsletter.