IRIA News

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Russia spent a record $123.4 billion on its military and weapons production during the first half of 2026, according to an analysis of Russian Finance Ministry data.

The figures, estimated by the German Institute for International and Security Affairs, show that Russia’s military spending increased by 30% compared with the same period last year. The increase amounted to about 2.46 trillion rubles, or $28.4 billion.

The spending highlights the growing financial burden of Russia’s war against Ukraine and the increasing share of government resources being directed toward the military and defense industry.

Russia’s military expenditure during the first six months of 2026 was 65% higher than during the same period in 2024 and 145% above the level recorded in the first half of 2023.

Compared with the first year of the full-scale war, military spending was 285% higher. The increase is even more significant when compared with the pre-war period. Russia’s military expenditure during the first half of 2026 was more than five times higher than during the same period in 2021.

On average, Russia spent about 1.78 trillion rubles, or $20.6 billion, on military operations and weapons production each month during the first half of the year. That amounts to approximately 59 billion rubles, or $681 million, every day and around 2.5 billion rubles, or $28.9 million, every hour.

Military-related expenditure accounted for 43.8% of all Russian federal budget spending during the first six months of the year, according to Kluge’s calculations. That represented a new record.

The military also consumed 57.3% of total federal government revenue during the period. The figures represent a significant increase from previous years.

In the first half of 2025, military spending accounted for 39.2% of federal expenditure and 46.8% of government revenue.

Before Russia launched its full-scale invasion of Ukraine in 2022, the corresponding figures were about 20% of federal spending and 19.8% of government revenue.

Classified Spending Dominates Military Budget

A large portion of Russia’s military expenditure remains classified. According to Kluge’s calculations, exactly two-thirds of Russia’s military spending during the first half of 2026 was classified.

The government spent about 3.546 trillion rubles, or $40.9 billion, through publicly disclosed defense budget categories. Another 7.141 trillion rubles, or $82.4 billion, went through classified spending.

The classified portion increased by 42% compared with the previous year and was more than seven times higher than before the war.

The scale of classified expenditure makes it difficult to determine exactly how Russia is allocating its military resources. However, the figures indicate that a growing share of public finances is being directed toward areas that are not openly detailed in the federal budget.

Spending Exceeds Moscow’s Original Plans

Russia’s 2026 budget initially projected defense spending at 6.7% of gross domestic product. Actual military-related expenditure during the first half of the year, however, reached an estimated 10.5% of GDP, according to Kluge’s analysis.

That means spending was about 1.5 times higher than the level originally planned in the annual budget. The higher military expenditure has also contributed to growing pressure on Russia’s federal finances.

The budget deficit reached about 6.45 trillion rubles, or $74.5 billion, during the first seven months of 2026. The figure was already around twice the deficit originally planned for the entire year.

Russia is also facing pressure from weaker oil and gas revenues, which remain an important source of government income. To manage the growing deficit, the government has reportedly reduced civilian spending by about one-third since the spring and ordered a 15% reduction in staffing across government agencies.

Internal Finance Ministry calculations cited by Bloomberg indicated that the deficit could reach about 9 trillion rubles, or $103.9 billion, by the end of the year without additional spending cuts.

$660 Billion Spent Since 2022

Russia’s military spending has accumulated rapidly since the beginning of the full-scale war. According to Kluge’s calculations, Moscow has spent about 57.144 trillion rubles, or $660 billion, on military activities and weapons purchases since the beginning of 2022.

The amount is close to the value of Russia’s total gold and foreign exchange reserves, which stood at about $720.3 billion as of August 1.

Russia’s cumulative military expenditure since 2022 is also more than twice the estimated value of its gold reserves, which stood at about $292.8 billion.

The figures demonstrate the scale of the financial resources Moscow has committed to sustaining its military operations over more than four years of war.

Ukraine’s Strikes Add Pressure

Russia’s financial challenges are also being compounded by Ukraine’s long-range strikes against energy infrastructure, logistics facilities and military-industrial targets. Ukraine’s Defense Intelligence Chief Oleh Ivashchenko has said that these attacks are forcing Russia to halt some production and redirect resources toward repairs.

According to Ivashchenko, disruptions to energy and industrial infrastructure are reducing Russia’s ability to manufacture weapons while adding further pressure to the country’s budget.

Despite the growing economic strain, Ukrainian military intelligence estimates that Russia still has enough resources to continue fighting through 2027 and potentially into 2028. Russia’s Sberbank has also reportedly examined eight possible scenarios for ending the war. In its assessment, the probability of a Russian military victory was estimated at only 7%.

The combination of record military expenditure, rising budget deficits, declining energy revenues and increasing pressure on Russia’s industrial infrastructure points to a growing financial cost for Moscow.

At the same time, the scale of spending shows that Russia continues to place the war and defense production at the center of its economic priorities, directing an unprecedented share of state resources toward sustaining its military campaign.