In early October, the Russian government released the full draft of its 2026–2028 federal budget, outlining President Vladimir Putin’s key policy priorities for the coming years. The budget highlights the continued military and economic challenges facing the country as it sustains the war effort in Ukraine. However, experts are increasingly concerned about the long-term financial sustainability of the war, with warnings that the strain on Russia’s resources may lead to a deeper economic crisis.
Vladimir Milov, a prominent Russian opposition economist, has expressed alarm over the budget’s implications in a recent report for the Free Russia Foundation think tank. He argues that the current fiscal policies are not viable in the long term and could exacerbate the country’s economic difficulties. Milov’s analysis suggests that the Russian government may need to implement significant reforms to address the mounting fiscal pressures from the war.
The budget also reflects the Kremlin’s efforts to balance military spending with domestic economic development. However, the report indicates that the priority given to the war effort is causing financial strain across various sectors. As the war continues, the economic consequences for Russia are becoming more evident, raising questions about the government’s ability to maintain its current level of military and economic commitment.
Analysts suggest that the Russian economy is at a critical juncture, with the potential for a severe financial crisis if the government does not take decisive action. The situation underscores the increasing costs of the war and highlights the growing challenges facing Russia’s economic and political stability.