Russia Lifts Its 2027 War Budget 27% to a Record $202 Billion and Cuts Welfare to Pay

Moscow's draft raises 2027 defense spending to 17.1 trillion rubles, about 35% of federal outlays, paid for with welfare cuts, new taxes and 43% more borrowing.

Russia plans to spend 17.1 trillion rubles (about $202.6 billion) on defense in 2027, government documents seen by Reuters show. That is 27% above the 13.5 trillion rubles originally budgeted for next year and the highest figure since the full-scale invasion of Ukraine began in 2022. The documents project 50 trillion rubles over three years.

The money follows a wider air war. Russia has stepped up strikes on Ukraine's Black Sea ports, energy infrastructure and cities, including ballistic missile attacks on Kyiv, and that appears to coincide with higher outlays for drone and missile production, Bloomberg reported. Ukraine's strikes on refineries, logistics hubs and warehouses are forcing Moscow to bolster costly air defenses at the same time.