Russia's Military Spending Hits Record High in First Half of 2026

Russia’s military expenditures have surged to unprecedented levels, reaching 10.687 trillion rubles ($123.4 billion) in the first half of 2026. This marks a significant 30% increase compared to the same period in 2025, according to Janis Kluge, a researcher at the German Institute for International and Security Affairs. The increase amounts to an additional 2.46 trillion rubles ($28.4 billion) year over year.

Military spending in Russia has seen a dramatic rise, with figures 65% higher than in the first half of 2024 and 145% above the levels recorded in 2023. Compared to the first year of Russia’s full-scale conflict with Ukraine, spending has increased by 285%, and it is more than five times higher than in the pre-war year of 2021.

On average, Russia allocated approximately 1.78 trillion rubles ($20.6 billion) monthly towards its military and weapons production in the first half of 2026. This translates to about 59 billion rubles ($681.4 million) daily, or 2.5 billion rubles ($28.9 million) per hour. Military-related expenditures accounted for 43.8% of all federal budget spending during this period, setting a new record.

When measured against government revenue, the military’s share was even more pronounced, consuming 57.3% of all federal budget income. The previous year, military spending represented 39.2% of federal expenditures and 46.8% of revenue. Before the full-scale invasion, these figures were at 20% and 19.8%, respectively.

Approximately two-thirds of Russia’s military spending remains classified, with 3.546 trillion rubles ($40.9 billion) spent through publicly disclosed defense budget lines and 7.141 trillion rubles ($82.4 billion) through classified expenditures. The classified portion has increased by 42% from the previous year and is more than seven times higher than before the war.

Since 2022, Russia has spent a total of 57.144 trillion rubles ($660 billion) on military and weapons procurement, a figure comparable to the Russian Central Bank’s entire gold and foreign currency reserves, valued at $720.3 billion as of August 1. This amount is also about 2.2 times the estimated $292.8 billion value of Russia’s gold holdings.

The Russian government initially planned defense spending to be 6.7% of gross domestic product in its 2026 budget. However, actual spending was about 1.5 times higher, reaching an estimated 10.5% of GDP for the first half of the year. This surge in military expenditures has contributed to a widening federal budget deficit, which reached about 6.45 trillion rubles ($74.5 billion) in the first seven months of 2026, equivalent to 2.8% of GDP and nearly double the original target for the entire year.