Wars are not only fought on the battlefield but also in the financial sector. Sustaining prolonged military operations requires enormous resources, often forcing governments to make difficult trade-offs between defense spending and domestic needs.
Russia’s Daily War Expenses
According to Kirilo Budanov, head of Ukraine’s Defense Intelligence, Russia spends nearly $1 billion per day on its war in Ukraine. As reported by Digi24, this expenditure accounts for 41% of the country’s total budget, an unprecedented figure that has led to deep cuts in social programs, healthcare, and education.
While economic problems have already begun to emerge, Budanov notes that Russia’s vast reserves of oil, gas, metals, and precious stones provide some financial stability. These resources allow Moscow to sustain its military operations despite increasing financial strain.
Hidden Costs and Economic Risks
Experts warn that Russia’s war spending far exceeds its long-term budgetary capacity. Craig Kennedy, a researcher at Harvard University’s Center for Russian and Eurasian Studies, has argued that Moscow is financing about half of its military expenditures through hidden debt mechanisms.
Russian banks are reportedly being pressured into providing loans under non-market conditions to companies involved in the war effort. This approach, analysts suggest, could lead to a collapse of key corporations and financial institutions if the war continues at its current pace.
The Long-Term Outlook
Russia’s ability to sustain such high military spending depends on its economic resilience and access to global markets. While sanctions and reduced foreign investment pose challenges, the country continues to leverage its natural resources to fund the war.
However, with prolonged conflict and increasing reliance on debt, experts believe that Moscow’s economic stability remains at risk—raising questions about how long it can continue financing its military ambitions without severe long-term consequences.
