According to German intelligence (BND), in 2025 Russia spent about €250 billion on defense, nearly half of the state budget and roughly 10% of GDP. This is significantly higher than the officially reported expenditures, which the Kremlin presents as 13 trillion rubles.
Source: Gazeta.UA
As The Telegraph reports, actual spending has been rising every year since the full-scale invasion of Ukraine in 2022. Part of the funds is allocated not only to supporting the war in Ukraine but also to expanding Russia’s military capabilities along NATO borders, including construction projects, military IT programs, and social payments to service members.
Analysts note that the Kremlin uses a much narrower definition of defense spending than NATO and systematically distorts official data. The rise in war expenditures, combined with falling energy export revenues, has forced the government to cut social spending and increase VAT, creating a budget deficit of over $70 billion.
These figures indicate a growing threat to Europe and demonstrate the scale of hidden war financing by the Kremlin.