Russia intends to raise military spending in 2027 to its highest level since the start of the war in Ukraine, according to government documents seen by Reuters on Monday. The plans call for 17.1 trillion roubles (about 178 billion euros), roughly 27 percent more than the 13.5 trillion roubles originally budgeted for that year. Over the next three years, defence outlays are projected to total 50 trillion roubles.
The figures come with caveats. The actual defence spending for 2026 is classified, although 12.1 trillion roubles was originally earmarked, and parts of military spending can be recorded under other budget lines. The documents also show the strain on public finances: the government has doubled its forecast for the 2026 budget deficit to 3.2 percent of gross domestic product, up from 1.6 percent. Total spending is expected to rise 13.2 percent to 48.6 trillion roubles. To help cover the gap, the government plans tax increases in 2027, including a new special levy on metals and mining companies expected to raise about 200 billion roubles a year. The draft budget is due to go to parliament by 1 October.
On the same day, President Vladimir Putin signed a decree raising the army's authorised strength by 15,500 troops. The armed forces are now set at 2,441,630 people, including 1,550,500 active-duty military personnel. The decree gave no reason. Taz reports that Putin had announced earlier increases in March, June and July, while BBC Arabic cites one in August. Russia is currently making only limited territorial gains, and Kyiv has repeatedly accused Moscow of preparing a new wave of mobilisation, which Putin has dismissed as disinformation.
Foreign support for Russia's war effort is also in focus. Ukrainian President Volodymyr Zelensky said, citing new data, that more than 8,000 North Korean soldiers are on Russian territory and that preparations are under way to deploy another 10,000. Estimates from Ukraine and South Korea put the number of North Korean troops sent since 2024 at 14,000 to 15,000, mostly in Russia's Kursk region, which borders Ukraine. Ukrainian and independent assessments say Pyongyang has also supplied millions of artillery shells and missiles. His remarks came amid friction with Seoul, which expressed regret after Zelensky disclosed that Ukraine had transferred two captured North Korean soldiers to South Korea, a move it said had been agreed to be kept confidential.
The fighting continues. Explosions were heard in Kyiv overnight, and Mayor Vitali Klitschko reported damage in several districts, including missile debris in the yard of a residential building. Zelensky said nine people were killed and more than 80 injured in Russian drone attacks on Monday. Ukraine, meanwhile, is postponing some non-essential spending, such as reconstruction, because of delays in international aid, according to Prime Minister Serhiy Koretsky, and plans to devote two-thirds of next year's budget to defence. Pope Leo XIV, for his part, urged both sides to negotiate and criticised rising arms production as fuelling tensions.
Why this matters: the figures show both the scale of Russia's commitment to the war and the mounting fiscal cost, as Moscow turns to higher taxes and a larger deficit while Ukraine relies heavily on foreign financing.