Russia is burning through $24 million per hour on its war in Ukraine, with more than half of its military spending now hidden from public view, according to new analysis of Russian Finance Ministry data.

The Kremlin’s military machine consumed 1.32 trillion rubles (about $16.6 billion) per month, 43.4 billion rubles (about $547 million) per day, or 1.9 billion rubles (about $24 million) per hour between January and September 2025, according to calculations by Janis Kluge, a research fellow at the German Institute for International and Security Affairs.

While 59 percent of Russia’s military budget remains classified, analysis of available Finance Ministry data reveals where the unclassified portion is going—and how wartime spending is reshaping Russia’s entire economy.

Classified spending dominates

More than half (59 percent) of Russia’s military budget is now classified, according to Kluge’s analysis of Finance Ministry data.

Between January and September 2025:

• Classified military spending: 7.038 trillion rubles ($88.6 billion)
• Open military spending: 4.816 trillion rubles ($60.7 billion)

The classified “shadow” budget increased 39 percent compared to the same period in 2024, and is now five times larger than pre-war levels in 2021.

Record share of budget

The Kremlin spent 44 percent of all federal tax revenues and 39 percent of total federal expenditure on the war—both figures representing record highs.

For comparison, last year these shares were 39 percent and 36 percent respectively. In 2021, before the full-scale invasion, only 18.4 percent of tax revenues and 19 percent of expenditure went to military purposes.

According to Kluge’s calculations, the war against Ukraine has cost Russian taxpayers 42.34 trillion rubles ($542 billion) since early 2022.

Comparative context

The total war spending is equivalent to:

• 24 annual budgets for Russia’s entire higher-education system
• 22 years of federal healthcare spending
• Nearly 80 annual budgets of large and wealthy regions such as Sverdlovsk Oblast (530 billion rubles or $6.6 billion) or Krasnodar Krai (600 billion rubles or $7.5 billion)

Budget deficit widens

Russia’s Finance Ministry estimated a budget deficit of up to 3.8 trillion rubles (about $48 billion) for the first nine months of 2025, significantly higher than the 0.4 trillion ruble deficit during the same period in 2024.

The State Duma (Russian parliament) has approved amendments to the budget that include this deficit.

Total government spending surged by 13.9 percent year-on-year to 37.2 trillion rubles ($469 billion), while revenues increased at a much slower 0.7 percent to 32.9 trillion rubles ($414 billion).

2025 budget framework

Russia’s 2025 budget allocates 32.5 percent of total spending to national defense, amounting to 13.5 trillion rubles (over $145 billion), the highest level since the Cold War.

The budget represents the most secretive in post-Soviet history, with almost one-third of all spending closed to public scrutiny, according to analysts.

2026 projections: Security spending reaches 38%

The Russian government’s 2026 budget plan allocates 12.9 trillion rubles ($162 billion) to “National Defense” and an additional 3.91 trillion rubles ($49 billion) to “National Security,” which includes funding for the Interior Ministry, National Guard, intelligence services, and the prison system.

Combined security spending will reach 16.84 trillion rubles ($212 billion), or 38 percent of the total budget—up from 24 percent in pre-war 2021, representing a 1.6-fold increase.

Social spending at 20-year low

As military expenditures surge, social and economic spending has been crowded out to historic lows.

Social spending’s share of the budget will drop to 25.1 percent in 2026, down from 38.1 percent before the war. Economic support will fall to 10.9 percent, compared to 17.6 percent pre-war.

Both figures represent the lowest levels in 20 years of available Finance Ministry statistics, according to The Moscow Times.

No reduction planned even after peace

Even if peace negotiations succeed, the Kremlin does not plan to significantly reduce military spending, a source close to the Russian government told Reuters.

“Shells and drones will still need to be made, albeit on a slightly smaller scale. The confrontation will continue, the army and spending on weapons will be larger because the West is also building them up,” the source said.

Military budget levels may decrease starting in 2027 if active combat operations end, but “should not expect a reduction to pre-2022 levels,” the source emphasized.