Putin announces plans to reduce defense spending - IFAX.

Putin announces plans to reduce defense spending - IFAX.

Russian President Vladimir Putin has announced plans to reduce defense spending, a significant shift in policy amidst escalating geopolitical tensions. The decision comes as NATO leaders agreed to a substantial hike in military spending at their recent summit in The Hague.

In a speech delivered in Moscow, Putin criticized NATO leaders for "escalating a global arms race" and accused them of "fabricating" a narrative about Russia's potential invasion of Europe. He stated that the bloc's planned increase in defense spending highlights the drivers of the global military escalation and the arms race [1].

The NATO summit in The Hague saw leaders agree to a massive hike in defense spending, committing to invest 5% of GDP annually on core defense requirements by 2035. The decision was driven by pressure from U.S. President Donald Trump, who called the spending boost "something that no one really thought possible" [2].

Putin's announcement of reduced defense spending is notable given the context of escalating tensions, particularly in Ukraine. Russian forces launched a massive ballistic missile attack on the eastern Ukrainian city of Dnipro on Tuesday, killing 21 people and wounding over 300 others. Ukrainian President Volodymyr Zelenskyy described the strike as "another Russian strike on life" and called for a "significant strengthening" of sanctions against Russia [1].

The move to reduce defense spending in Russia is significant, given the country's ongoing military operations in Ukraine and the escalating tensions with the West. It also comes amid a record deficit in the Russian budget, which has been forced to cut into revenues from raw materials due to tighter US sanctions and a strengthening of the rouble [3].

In a separate development, Putin has signed a law revising the country's 2025 budget parameters, providing for an increase in spending by RUB 829 billion (approximately US$10.58 billion). This move is part of efforts to address the record deficit in the Russian budget, which reached RUB 3.8 trillion (approximately US$48.5 billion) in January-February 2025 [3].

The reduction in defense spending is likely to be seen as a strategic move by Putin, aimed at balancing the budget and addressing economic challenges while maintaining Russia's military capabilities. However, the decision may also be interpreted as a sign of Russia's willingness to de-escalate tensions with the West.

References:

[1] https://www3.nhk.or.jp/nhkworld/en/news/20250626_01/
[2] https://www.wabi.tv/2025/06/25/nato-leaders-agree-hike-military-spending-restate-ironclad-commitment-collective-defense/
[3] https://www.pravda.com.ua/eng/news/2025/06/24/7518561/