Russia to Cut Military Spending from Next Year, Says Putin
Russian President Vladimir Putin has announced a strategic pivot: starting next year, Russia will begin reducing its military spending over a three-year period. This decision marks a significant shift at a time when NATO countries are increasing defense budgets to around 5% of GDP.
Putin contrasted Russia’s approach with that of NATO, accusing Western governments of excessive military buildup driven by the U.S. military‑industrial complex. He emphasized that the focus is shifting toward peace rather than aggression. Final budget figures are still pending review by the defense, finance, and economic ministries, but the intention to scale back defense outlays is clear.
Russia Defense Cuts
Historically one of the top military spenders globally—allocating approximately 6.3% of GDP to defense in 2025, accounting for nearly one-third of the federal budget—Russia has faced mounting fiscal stress. Putin cited rising inflation and shrinking energy revenues as key pressures mandating a budget recalibration. The planned reductions are intended to alleviate these economic strains.
Budget Pressure
Economic indicators show Russia’s growth slowing, with forecasts pointing to a budget deficit widening from 0.5% to 1.7% of GDP in 2025. The government plans to tap into fiscal reserves to cover the gaps. Economists warn that maintaining wartime-level defense spending could tip the economy into recession, making the budget correction both necessary and timely.
Strategic Contrast
Framing Russia’s move as a strategic counterpoint to Western escalation, Putin argued, “We plan to reduce defense spending… Europe is increasing theirs.” He questioned who, then, was truly preparing for aggression. Negotiations over Ukraine and related wartime costs are said to have influenced this recalibration, alongside public fatigue and economic realities.
