Defense spending will account for almost one-third of Russia¡¯s total budget expenditure in 2024, the government¡¯s draft plans show, as Moscow diverts ever more resources towards prosecuting its war in Ukraine.

Russia also plans to ramp up state borrowing to help fund what it calls a ¡°special military operation¡± in Ukraine in the coming years and is counting on a recovery in oil and gas revenues to pre-invasion levels to do so.

Spending under the ¡°national defense¡± section of Russia¡¯s budget will total 10.78 trillion rubles ($109 billion) next year, or 29.4% of total planned expenditure of 36.66 trillion rubles, according to the finance ministry¡¯s budget documents that outline the government¡¯s fiscal plans for 2024 to 2026.