The kremlin Is Financing the War from the Pockets of russians
12/31/2025

Since the beginning of 2022, the war against Ukraine has cost russian taxpayers an estimated $550 billion. – the equivalent of 24 annual russian budgets for higher education or 22 budgets for healthcare. A significant portion of these expenses are hidden: 59 % of the military budget is classified. In the first three quarters of 2025, 4.816 trillion rubles were spent on “open” items, while 7.038 trillion rubles were spent on “closed” items. On an annual basis, the closed part of expenditures increased by 39 %.
The kremlin is shifting the financing of the war onto the population through new taxes and price increases. In a situation where any anti-war criticism is punished as “treason”, there is virtually no room for public discontent. As a result, prices for russians have been rising non-stop in 2022– 2025.
Gazprom compensated for the loss of European markets at the expense of domestic consumers: the average cost of utilities rose by 43 %, and an increase of about 14 % has already been announced for next year. Fuel prices rose by 29–35 %, and this trend will continue in 2026. Real estate in russia rose in price by 50 % between 2022 and 2025; in 2026, a further increase of 6–7 % is expected, and in moscow itself – up to 20 %.
The most sensitive growth is in food: dairy products have risen in price by 62 %, meat – by 41 %. Forecasts for 2026 predict further price increases of tens of percents.
Against this background, even the New Year mood seems subdued: 54 % of russians are annoyed by gifts related to self-development and healthy lifestyles.
