Russia decided to increase war spending after Putin’s meeting with Trump in Alaska, Bloomberg reports

Vladimir Putin significantly increased Russia's war spending in late 2025 following his meeting with U.S. President Donald Trump in Alaska in August, according to Bloomberg. The decision came after Putin believed peace talks with Ukraine would conclude within the following year, eliminating the need for a substantial budget bump.

However, by January, the Kremlin concluded that a deal would not be reached, leading to a sharp increase in defense spending. Russia's defense budget could soar to 17 trillion rubles by the end of 2026, a 40% increase over the 2025 plan and equivalent to the 2027 budget. This sudden rise contrasts with earlier plans to slow spending growth in 2026 and start rebuilding depleted reserves.

Experts suggest that the surge is due to Russia's prolonged war of attrition in Ukraine, rising military-production costs, and Ukraine's attacks on oil infrastructure, which peaked in spring and summer 2025. The government is now budgeting for a long-term conflict in Ukraine, though the exact cost remains understated.