Russia will pay for the war for years: Kremlin's debts exceed spending on education and healthcare.

According to ТСН: Russia will be paying for its invasion of Ukraine for many years, even if military actions end today. The Kremlin is trying to cover the increasing deficit in its military budget with ever more expensive loans.

According to Bloomberg, the deficit in the aggressor state's budget is growing against the backdrop of increasing military expenses from 30% to 60%, while revenues from raw materials, particularly oil and gas, are decreasing.

The financial situation in Russia

After exhausting reserve funds, the Russian authorities sharply increased the issuance of government bonds. In 2025, they issued them for 7.9 trillion rubles—more than during the peak period of the COVID-19 pandemic.

Funds for the budget remain expensive: the key rate of the Central Bank of Russia was 21% a year ago, and now it is 16.5%. Interest payments are already accounted for in future budgets and cannot be quickly reduced.

Debt expenditures

Debt servicing costs currently constitute twice the share of total expenditures compared to before the war, already exceeding budget allocations for healthcare and education. From next year, they may become the fourth-largest budget item after national security, surpassing combined spending on healthcare and education.

If debt expenditures rise sooner than planned, the government will have to cut funding in other areas to avoid increasing the deficit.

Although currently, the debt of the Russian Federation relative to GDP appears small, government forecasts indicate that it will grow to over 20% by 2027 and nearly 70% by 2042.

It should be noted that the Kremlin conceals the critical state of the Russian economy, which is on the brink of recession, accompanied by a decline in gross domestic product.

Thus, the financial situation in Russia demonstrates serious challenges that could lead to further socio-economic repercussions. Should military spending continue to be supported, the country risks facing even deeper problems in other crucial areas such as education and healthcare, affecting the lives of ordinary citizens.