Published by Global Banking & Finance Review®
Posted on September 29, 2025
2 min readLast updated: January 21, 2026
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Russia's defence budget is set to decrease slightly in 2026, with 13 trillion roubles planned. However, spending can be adjusted if needed due to the ongoing conflict.
By Darya Korsunskaya
LONDON (Reuters) -Russia's state spending on national defence is set to fall slightly in 2026, according to draft budget materials submitted to parliament, but sources said it could be increased if needed.
The documents show planned defence spending of 13 trillion roubles ($157 billion) in 2026, which would be the fifth year of the war in Ukraine.
That is more than the 12.6 trillion roubles noted in preliminary Finance Ministry documents obtained by Reuters last week, but below this year's post-Soviet high of 13.5 trillion roubles.
The lower target has raised questions among analysts, given that there is no sign of an end to the conflict. How the money will actually be spent is unclear, because 84% of defence expenditure is classified.
A source with knowledge of the budget process told Reuters that defence spending can be increased rapidly if necessary.
"If there is active warfare, they can add funding at any moment," said the source, who spoke on condition of anonymity because of the sensitivity of the subject.
Another source said actual military spending often exceeds targets and may be hidden within other types of expenditure.
Actual military spending in 2025 is classified, but published materials show some increases compared to the initial plan, including 30 billion roubles in additional capital for PSB, a bank serving the military-industrial complex.
Combined with national security spending, which includes financing for police and security agencies, total spending for defence and security-related items in the draft 2026 budget amounts to 16.8 trillion roubles, almost on a par with this year's figure of 17 trillion.
The share of defence and security spending is set to fall to 38% of total budget expenditure from a record 41% last year. It will amount to about 7% of gross domestic product.
The Finance Ministry proposed raising the rate of value-added tax (VAT) last week to 22% from 20% in 2026 to fund military spending and help curb the budget deficit. Parliament will begin reviewing the budget on October 22.
($1 = 82.8705 roubles)
(Editing by Mark Trevelyan)
Russia's planned defense spending for 2026 is 13 trillion roubles, which is approximately $157 billion.
The 2026 budget is slightly lower than this year's post-Soviet high of 13.5 trillion roubles, but higher than the preliminary figures of 12.6 trillion roubles.
Defense and security spending is set to fall to 38% of total budget expenditure in 2026, down from a record 41% last year.
The Finance Ministry has proposed raising the value-added tax (VAT) from 20% to 22% in 2026 to help fund military spending and address the budget deficit.
Yes, sources indicate that defense spending can be increased rapidly if necessary, especially in the event of active warfare.
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