Russia to Allocate Record Defense Budget

Russia plans to increase military spending over a three-year period, with the 2027 war budget set at approximately 17 trillion rubles, and expectations that it will decrease to 16.6 trillion rubles in 2028. To fund this record-breaking expenditure, Moscow is relying on raising taxes and levies, including taxing profits from the mining and fertilizer industries, seizing 30% of excess profits when global prices rise, and imposing a 20% tax on gold mine profits. The government expects proceeds from the sale of confiscated assets to reach 342.3 billion rubles in 2023, with households bearing part of the costs through an average increase of 11% in service fees by 2027.

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