The Kremlin cannot afford peace: Russia's economy depends on war.

Russia's military spending is increasing

According to a report by The Telegraph, Russia's military expenditures reached 8% of GDP in 2025, a record high since the Soviet Union. This is leading to cuts in healthcare and education funding, as 40% of all federal expenditures go to military needs.

Even with high inflation and rising interest rates, the Russian Kremlin seems unwilling to reduce military spending. U.S. President Donald Trump is trying to resolve the conflict to alleviate economic pressure on Russia.

However, the Russian economy is so dependent on the military sector that a shift to a peacetime economy could lead to a serious crisis, similar to the collapse of the Soviet Union. Experts warn that Russia may continue to invest in military efforts to avoid economic instability.

Due to sanctions and limited access to Western technologies, Russia is struggling to modernize its military industry. However, the country could continue funding military needs for several more years, so the West must develop a strategy to strengthen pressure on Russia and support Ukraine.