Putin claims that starting next year, Russia would reduce its military budget
President Vladimir Putin stated on Friday that Russia aims to reduce its military budget starting next year, in contrast to NATO’s intention to increase defense spending over the next ten years.
Citing the need to improve military and civil resilience and the long-term danger presented by Russia, NATO allies agreed Wednesday to increase their collective expenditure target to 5% of GDP over the next ten years.
At a news conference in Minsk, Putin initially responded to that decision by saying that NATO’s expenditure will be used for “purchases from the USA and on supporting their military-industrial complex” and that this was NATO’s, not Russia’s, concern.
“But now for the most crucial part. We intend to cut defense budget expenditures. Over the next three years, we are preparing for this for next year and the year after,” he stated.
Although the defense, finance, and economy ministries have not yet reached a definitive agreement, Putin stated that “everyone is thinking in this direction overall.” On the other hand, Europe is considering ways to boost its spending. So, who is getting ready to do anything violent? They or us?”
The West is likely to view Putin’s remarks with a great deal of skepticism because Russia has significantly raised its defense budget since the crisis in Ukraine began.
Since there has been no discernible progress in negotiations for a ceasefire or a long-term settlement, the violence is not showing any signs of abating and has even gotten worse in recent weeks.
Putin said Russia valued U.S. President Donald Trump’s efforts to end the war.
“Recently, he said, it proved to be more challenging than it initially appeared. It’s true,” Putin remarked.
Trump stated this week that he thought Putin was looking for a solution to the war, but Ukraine and many of its European allies think the Kremlin leader is more interested in gaining more land than in reaching a peace agreement.
Putin stated that Moscow was prepared to return the bodies of an additional 3,000 Ukrainian servicemen and that Russian and Ukrainian officials were in continuous communication.
ECONOMIC DECLINE
Economic development in Russia has slowed significantly as the central bank works to control inflation and the budget is being squeezed by declining hydrocarbon receipts.
Russia increased their national defense budget by 25% in 2025, reaching the highest level since the Cold War at 6.3% of GDP. Thirty-two percent of the government budget for 2025 will go toward defense.
For the past few years, defense plants have been operating around the clock, and the government has made significant investments in bonuses to entice soldiers to enlist as well as in compensation for the families of those murdered.
Putin admitted that increased inflation was used by Russia to cover the increase in military spending.
In April, the finance ministry reduced its prediction for energy income by 24%, raising the 2025 budget deficit estimate from 0.5% to 1.7% of GDP. This year, the ministry intends to use fiscal reserves to balance the budget. The upcoming draft budget is anticipated to be released in the fall.
