Saturday, February 14, 2026 2:00:42 PM

Spending in Russia’s 2025 budget jumped from more than 1 trillion rubles (13.11 billion) to 5.7 trillion (74.73 billion), and the trend is holding in 2026 as the occupying country keeps borrowing.

On February 1, Russia’s external sovereign debt set another record – $61.97 billion. The Finance Ministry has not reported such levels in 20 years, since 2006, when the figure reached $76.5 billion.

As The Moscow Times reports, the Kremlin continues to borrow, and Russia’s total external debt far exceeds those numbers. Debt obligations of banks and state and private companies together with the sovereign debt amount to $319.8 billion.

Authorities are borrowing not only abroad but also at home. Government bond placements have allowed it to raise an enormous 38.5 trillion rubles from domestic investors, and by 2027 that figure is expected to reach 53.7 trillion rubles.

Even as Vladimir Putin boasts of Russia’s “lowest” debt-to-GDP ratio – 17.7% – the reasons for living on credit remain unchanged: budget holes that only expand annual war spending, including one-time payments to soldiers of 1 million to 3 million rubles, weapons production, and repairs to defense-industrial and oil facilities damaged by Ukrainian airstrikes, and more.

Russia is not used to – and does not plan to start – adequately assessing its outlays. The initial amount written into the 2025 federal budget exceeded 1 trillion rubles but ultimately reached 5.7 trillion rubles.

Russia’s rising costs and debts – and the number of investors eager to recoup their money and earn returns — create a dangerous dynamic. Around the world, too many individuals and public and shadow financial organizations are invested in ensuring the Russian Federation does not collapse and does not halt payments on its obligations. The occupying country is likely to continue its war of aggression for a long time, without facing resistance in the form of real, effective sanctions.

(C)UAWIRE 2026