Putin Directs Record-Breaking Defense Budget Amid Prolonged War in Ukraine

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Russian President Vladimir Putin has authorized a historic allocation for national defense, dedicating nearly one-third of the government’s budget to military spending as the protracted conflict in Ukraine strains resources on both sides. The 2025 budget, published on Sunday, earmarks approximately $126 billion (13.5 trillion rubles) for defense, accounting for 32.5% of government expenditure. This marks an increase of about $28 billion (three trillion rubles) compared to the previous year’s record budget.

 

The ongoing war, often characterized as a grinding war of attrition, continues to sap resources from both nations. Ukraine, despite being outmatched in terms of material and manpower, has benefited from substantial support from its Western allies. On Monday, Germany pledged over half a billion dollars in new military aid, including equipment slated for delivery in December. However, the future of U.S. support remains uncertain as President-elect Donald Trump prepares to take office.

 

While Russia possesses a larger arsenal, greater ammunition reserves, and a more extensive pool of personnel, the prolonged conflict has imposed significant economic and social burdens. Inflation in Russia is surging, and businesses are grappling with labor shortages. In an attempt to stabilize the economy, the Russian Central Bank raised interest rates to 21% in October, the highest level in decades. Meanwhile, the nation has significantly increased military spending over the past two years, exacerbating economic pressures.

 

Ukraine continues to rely heavily on foreign military assistance. German Chancellor Olaf Scholz, a prominent supporter of Ukraine, recently announced a package of military equipment valued at over $684 million (€650 million). Despite receiving substantial aid, Ukraine faces challenges in countering Russia’s superior resources and enduring battlefield losses.

 

Russia, too, is experiencing difficulties with recruitment and troop retention. The last partial mobilization prompted hundreds of thousands of Russian men to flee the country, highlighting the growing reluctance among the population to join the war effort. Furthermore, battlefield losses have compelled Russia to seek external support. In November, Ukrainian President Volodymyr Zelensky revealed that approximately 11,000 North Korean soldiers had been deployed to Kursk to assist Russian forces. 

 

Additionally, North Korea has supplied weaponry to Russia, with Ukrainian defense officials reporting that nearly a third of ballistic missiles fired at Ukraine this year originated from North Korea. While these reinforcements may temporarily bolster Russia’s capabilities, the material losses incurred in the conflict remain difficult to replenish.

 

As the war drags on, the strain on both nations continues to grow, with no clear resolution in sight. Russia’s record-breaking defense budget underscores its determination to sustain the conflict, but it also highlights the immense cost of its ongoing campaign in Ukraine.

 

Based on a report by the CNN 2024-12-03