Russia's 2025-2027 Draft Budget Analysis

This is a Russia news story, published by The Bell, that relates primarily to Vedomosti news.

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The Bell

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Russia on track to set new military spending records

Summary

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Russia 's draft budget for 2025-2027 envisages military expenditure rising by almost a quarter .

This increase is confirmation the economy has switched a war footing, and even if the war in Ukraine ends soon, channeling money to the army and a bloated defense sector will remain a top priority.

At the same time, the draft budget assumed a fall in oil and gas revenues.

Military spending represents 32% of the entire federal budget, and 40% when combined with “national security” was never mentioned directly.

There was no reporting about increased military spending by Russia ’s business media ( RBK , Kommersant , Vedomosti ). Russia appears to be betting on the defense sector being a key driver of domestic demand.

The ruble could fall by about 5% against the Chinese yuan before the end of the year , analysts say.

Gazprom is even asking the government to reverse an increase in mineral extraction tax.

German police seize servers from 47 crypto-exchanges linked to Russia .

Inflation in Russia from Sept. 17 to Sept. 23 was 0.06% , down from 0.1% the previous week .

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English

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