In a significant move as the war in Ukraine continues, the Russian government has proposed an unprecedented defense budget for 2025, allocating 32.5% of its overall spending to military expenditures. This marks an increase from the 28.3% designated for this year. The draft budget, unveiled on Monday, outlines nearly 13.5 trillion rubles (over $145 billion) for national defense, which is approximately three trillion rubles ($32 billion) more than what was allocated for 2024—the previous record.
The conflict in Ukraine stands as Europe’s largest military engagement since World War II, significantly draining resources on both sides. Ukraine has received substantial financial and military support from Western nations, aiding its efforts against the larger and better-equipped Russian military. Recently, the Russian army has been gradually gaining ground, pushing Ukrainian forces back in several eastern regions.
As the war nears its three-year mark next February, Ukrainian President Volodymyr Zelensky visited the United States last week, seeking continued financial and military assistance. Meanwhile, Russian President Vladimir Putin is focusing on sustaining the military campaign, which has put considerable pressure on the Russian economy.
To combat rising inflation, the Central Bank of Russia recently increased its key interest rate by a full percentage point to 19%. This move aims to bring down inflation from its current rate of 9.1% to the target of 4% by 2025. The draft budget indicates that defense spending may decline in 2026, suggesting a possible shift in priorities in the coming years.
The proposed budget will undergo three readings in the State Duma, Russia’s lower house of parliament, followed by approval from the Federation Council, the upper house, before being signed into law by President Putin. In a related move, Putin has issued a call-up order for 133,000 conscripts as part of the routine autumn military draft, a standard practice during seasonal enlistment periods.
This month, Putin also announced plans to increase military personnel by 180,000, bringing the total to approximately 1.5 million, with an overall military count of around 2.4 million.
In the meantime, Russian military activity has intensified. On Monday, Russia launched missile and drone strikes across 11 regions in Ukraine, marking the 33rd consecutive night of aerial attacks. These assaults have resulted in a record number of drone launches for a single month, with over 1,000 Iranian-made Shahed drones used throughout September alone. This is notable as it marks the first time these drones have been deployed in every daily aerial attack of the month.
In Kyiv, the Ukrainian capital experienced multiple explosions and machine gun fire during the night as air defense systems worked to thwart a drone attack that lasted for five hours. Fortunately, no casualties were reported, although a fire broke out at a “critical infrastructure object” in the southern Mykolaiv region, as noted by Governor Vitalii Kim.
Russia’s shift to deploying more Shahed drones, as opposed to costlier missiles, reflects a strategy aimed at maximizing impact while managing costs amid the ongoing conflict. September saw over 1,300 Shahed drones launched at Ukraine, marking the highest monthly total since the invasion began in February 2022.
In response, Ukraine has also made advancements in its drone technology, developing a new generation of drones capable of conducting long-range strikes deep into Russian territory. Ukrainian officials reported that more than 100 of their drones were intercepted over Russia on a recent Sunday.
Additionally, on Monday, Putin released a video commemorating the second anniversary of the annexation of four Ukrainian territories—Donetsk, Luhansk, Kherson, and Zaporizhzhia—accusing the West of turning Ukraine into a military base aimed against Russia. This annexation, conducted following a controversial referendum in 2022, was widely condemned by Western nations as illegitimate. Russia also illegally annexed Crimea in 2014.
During his remarks, Putin claimed that businesses in the occupied territories are being “actively restored” and that efforts are underway to rebuild hospitals and schools. Despite thousands of Ukrainians fleeing these regions due to the invasion, Putin framed Russia’s military operations as essential for ensuring the “well-being” of residents and securing a favorable future for “our children and grandchildren.”
As the conflict continues to evolve, both sides are grappling with the realities of prolonged warfare. Russia’s increased defense spending reflects its determination to maintain military momentum, while Ukraine’s ongoing pursuit of support from Western allies highlights the critical need for sustained assistance in its fight for sovereignty. The situation remains fluid, with significant implications for the region and beyond as the war persists into its third year.
