The publication of this text, which must be approved by the Russian Parliament in the fall before its promulgation by Vladimir Putin, comes on the day when Russia celebrates the second anniversary of the claimed annexation of four Ukrainian regions which it does not, however, control not entirely. In a video broadcast for “Reunification Day”, Vladimir Putin reiterated that “all the objectives set will be achieved” in Ukraine.
For this, defense spending will reach nearly 13,500 billion rubles (130 billion euros at the current rate) in 2025, according to the bill. The national military budget had already exploded by almost 70% in 2024, representing this year with security investments 8.7% of GDP according to Vladimir Putin, a first in the modern history of Russia. Since 2022, the Kremlin has largely reoriented its economy towards the war effort, developing its military-industrial complex at high speed, recruiting hundreds of thousands of employees.
The Kremlin anticipates a long conflict with Ukraine and does not seem concerned by the risks of increased dependence of its economy on military orders, at a time when inflation is around 9%, reducing the purchasing power of Russians. Vladimir Putin had in mid-September “strengthening the country’s defense capacity” and “integration of the occupied Ukrainian regions” as “priorities”.
The amount allocated for defense will represent in 2025 nearly a third of federal spending and more than twice as much as “social policy” investments. The budget dedicated to internal security, which includes the police and special services responsible in particular for repressing criticism of the Kremlin, will increase to 3,460 billion rubles (33 billion euros), representing nearly 10%. of the annual expenditure of the Russian state. This combination of “Defense” and “Security” will represent approximately 40% of the budget. Not to mention numerous classified investments.
1.5 million active soldiers
A sign that military spending is not ready to decrease, Vladimir Putin signed a decree in mid-September ordering an increase of nearly 15% in the number of soldiers, bringing it to 1.5 million. One in 50 assets in Russia will then be in the army which, according to Russian media, would become the second largest in the world after that of China.
To “effectively” manage the army’s accounts, where corruption remains endemic, Vladimir Putin has placed an economist, Andreï Beloussov, at the head of the Defense Ministry since May. And many officials in the Defense sector have been incarcerated. In total, federal spending will increase in 2025 to 41.5 trillion rubles (around 400 billion euros).
To complete its budget, the government has planned for January 1 an increase in taxes on high incomes and businesses. However, labor shortages remain problematic in a large number of sectors, leading to overheating of the national economy. Faced with the Russian offensive, Ukraine, largely dependent on Western financial and military support, plans to devote more than 60% of its budget next year to defense and security (EUR 48.3 billion). .
Russian independent media journalists arrested
Three journalists were also “arrested” Monday evening in Moscow while they were covering a concert celebrating the anniversary of the claimed annexation of Ukrainian regions, said the human rights NGO OVD-Info. According to this source, one works for the information site Republic and the other two for the independent media SOTAvision. These publications are classified as “foreign agents” in Russia.
The journalists were taken to a police station and two of them will be “charged with hooliganism”, said the NGO. SOTAvision confirmed the arrest of its reporters while they were “collecting comments” from spectators leaving the concert on Red Square, having been unable to access the site themselves. On September 30, 2022, Vladimir Putin signed decrees on the annexation of the Ukrainian regions of Donetsk and Lugansk (east), as well as those of Zaporizhia and Kherson (south).
On the front, Russian forces continue to advance in the east and claimed Monday the conquest of a new small town, Nelipivka. In areas of eastern Ukraine controlled by Russian forces, several Ukrainian attacks killed a teenager and injured eight others, including three children, according to the leader of the Russian occupation in the Donetsk region, Denis Pushilin .
