Russia's Defense, Security, Espionage Spending Nears Half of Public Budget

Russia has increased military spending by a third for the sixth year of its invasion of Ukraine, pushing defense, security, and espionage to nearly half of public spending—an unprecedented level since the USSR. Ukrainian strikes on refineries are penalizing hydrocarbon revenues despite higher oil prices, straining fiscal capacity. This signals a sustained war economy with potential long-term macroeconomic consequences.