 "Putin bets big on war: Russia approves $126 billion defence budget for 2025")
Russian President Vladimir Putin has approved a massive defence budget for 2025, allocating a staggering $126 billion to national defence. This marks a record 32.5 per cent of the government’s total spending, reflecting the economic strain and urgency of the ongoing conflict, which is now nearing its third year, reported CNN.
The new defence budget marks a $28 billion increase over this year’s defence spending, underscoring Russia’s push to strengthen its military amid the prolonged conflict in Ukraine. The three-year budget projection also forecasts a slight reduction in military spending for 2026 and 2027, but the outlook remains uncertain as the war drags on.
Ukraine war drains resources for both sides
The war in Ukraine, described as the largest military conflict in Europe since World War II, shows no signs of abating, with Russia making incremental gains along key frontlines, including a counteroffensive in the Kursk region – one of Ukraine's few major successes this year. Despite Moscow’s push to maintain control and expand its territory, both Russia and Ukraine are facing immense resource strain.
While Ukraine continues to rely heavily on billions in military aid from its Western allies, including the United States, Russia, with its larger population and arsenal, is not immune to the economic fallout. The toll of the war is evident, as Russia grapples with rising inflation, labour shortages, and signs of economic overheating. To curb these effects, Russia’s Central Bank raised interest rates to 21 per cent in October, the highest in decades.
Rising military spending and economic strain
Russia’s military spending has surged dramatically in the past two years, but the financial strain on the country is becoming increasingly evident. Inflation is high, and companies are facing growing labour shortages, further exacerbating the economic challenges. Despite having a significantly larger population and greater military resources than Ukraine, Russia is facing significant battlefield losses. The need for more recruits has prompted the Russian government to impose a partial mobilisation, resulting in mass exoduses as hundreds of thousands fled the country.
North Korea’s growing role in Russia’s war effort
As Russia seeks support, it has turned to North Korea for aid, with a reported influx of approximately 11,000 North Korean soldiers sent to the frontlines in the Kursk region. Ukrainian President Volodymyr Zelensky confirmed the deployment of these troops in November. Additionally, North Korea has reportedly supplied Russia with weaponry, including ballistic missiles, which account for almost a third of the missiles fired at Ukraine this year.
The military collaboration with North Korea may provide some relief for Russia in the short term. However, the long-term challenges posed by the depletion of material resources and increasing battlefield losses remain a significant concern. With recruitment difficulties and a growing economic crisis, Russia’s capacity to sustain its military campaign in Ukraine faces critical tests in the years ahead.