Russia faces enduring sanctions as military budget soars
In an interview with Reuters, Andrei Kostin, head of VTB Bank, the second-largest lender in Russia, stated that Western sanctions imposed on Russia due to its military actions in Ukraine are not expected to be lifted anytime soon.
The head of the Russian bank reiterated in the interview that Western sanctions imposed on Russia because of its military activities in Ukraine will not be lifted any time soon.
Kostin also expressed his belief that Russian currency reserves, which were frozen in the West following the outbreak of the war in Ukraine, will not be returned.
In the West, they say, let's fund Ukraine’s reconstruction from the reserves. And they will present such a bill that even the reserves won't suffice, said Andrei Kostin, head of VTB Bank, in an interview with Reuters.
This is how much Putin’s war costs Russia
The law regarding Russia’s federal budget signed by Vladimir Putin includes a 25% increase in military spending compared to the current year, reported Reuters, citing a legal act published on Sunday in the online government journal.
The independent Russian portal Meduza reported that defence expenditure in 2025 is projected to be about 13.5 trillion roubles, approximately £103 billion, constituting around 6.3% of Russia's GDP.
Meanwhile, in 2026, military expenditures are expected to be 12.8 trillion roubles (approximately £98 billion), and in 2027, they are projected to be 13.1 trillion roubles (around £100 billion). Overall, Russia plans to allocate at least 40% of the budget to defence and national security between 2025 and 2027.
