Russia spent 10.7 trillion rubles ($123.4 billion) on its military in the first half of 2026, a 30% jump from a year earlier. Military outlays now swallow 43.8% of federal budget spending and 57.3% of budget revenue, both records, pushing Moscow to tap its sovereign wealth fund to cover the gap.
Russia burned through 10.7 trillion rubles on its military in the first six months of 2026, roughly $123.4 billion at current exchange rates. That figure marks a 30% jump from the same period last year, and it means Moscow now spends more on war than on everything else in its federal budget combined, measured against revenue.
The numbers come from Janis Kluge, a researcher at Stiftung Wissenschaft und Politik in Berlin, who analyzed data published by Russia's Ministry of Finance.
Military spending eats the budget
Military spending now accounts for 43.8% of total federal budget expenditures, a record high. It represents an even sharper 57.3% of total budget revenues — for every ruble Moscow collects, more than half goes straight to the war effort.
Broken down, Russia spent approximately 1.78 trillion rubles per month on military operations during the first half of 2026. That works out to roughly $28.6 to $29 million every 60 minutes. About two-thirds of the total, around 7.141 trillion rubles, is classified under "national defense" and remains undisclosed in its specifics.
Spending has outrun the Kremlin's own plan
This level of wartime spending wasn't supposed to happen, at least not according to the Kremlin's own budget plans. The 2026 federal budget originally targeted military spending at 6.2% to 6.7% of GDP. Current trajectories suggest the real figure could land between 9% and 10% of GDP, possibly higher if spending continues at its current pace through the second half of the year.
As a result, the gap between planned and actual spending has created a fiscal problem. Russia's budget deficit is now estimated at 2.8% to 3.8% of GDP. That is well above the 1.6% annual target the government set for itself.
To cover the shortfall, Moscow has been leaning on its reserves. The National Wealth Fund, Russia's sovereign wealth fund originally designed to cushion the economy during oil price downturns, is increasingly being tapped to fund current military operations.
Source: Crypto Briefing
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