Record Military Personnel Spending Signals Kremlins Unyielding War Efforts in Ukraine

Military expenditures for personnel in Russia hit an unprecedented 2 trillion rubles ($25.68 billion) during the first half of 2025, according to the latest estimates from Re: Russia, a research platform operated by exiled Russian scholars.

This significant increase in spending—fuelled by recruitment bonuses, salaries, and compensation for injured soldiers and the families of the deceased—demonstrates the Kremlin’s commitment to continue its military actions in Ukraine regardless of the costs involved.

From January to June, federal and regional budgets set aside around 400 billion rubles ($5.14 billion) for recruitment bonuses, 865 billion rubles ($11.11 billion) for military salaries, and 765 billion rubles ($9.82 billion) in payments to families of those killed or injured.

If this trend persists, total expenses on military personnel are expected to surpass 4 trillion rubles ($51.36 billion) by the end of the year.

This amount would represent approximately 9.5% of the total planned federal government expenditure for 2025 and about 2% of Russia’s gross domestic product (GDP).

These statistics indicate a substantial increase compared to the previous year, with personnel costs projected to rise by 1 trillion rubles ($12.84 billion) year-over-year.

This increase in spending occurs as the Russian government provides more attractive financial incentives to rebuild its military ranks in light of ongoing battlefield losses.

As reported by Re: Russia, around 200,000 new military contracts have been established in the past six months.

Analysts contend that “an effective commercial ‘contract for war’ remains a crucial factor enabling Vladimir Putin to sustain offensive operations in Ukraine for a second consecutive year, despite facing exceedingly high casualties and limited territorial gains.”

Dmitry Medvedev, Deputy Chairman of the Security Council, recently commended the recruitment efforts, describing them as “quite decent, good,” and expressed confidence that this pace would continue.

However, the expense of sustaining troop levels has exacted a significant human cost.

Estimates by The Economist suggest that Russian military fatalities between May 1 and July 9 may have reached around 31,000, marking the deadliest period of the war this year.

Overall estimates of casualties since the invasion began range from 900,000 to 1.3 million, with deaths or permanent injuries estimated between 190,000 and 350,000, according to Western intelligence and independent assessments.