Story perspectives

Putin Warned: War Budget Gap Hits Record, Defense Demands 3 Trillion

6/4/2026

Summary

Story summary

Senior officials warned President Vladimir Putin that Russia’s war-time budget gap has hit a record level.
The Finance Ministry and central bank said current defense spending could raise the 2026 deficit to 5.9 trillion rubles.
Finance Minister Anton Siluanov proposed cutting public outlays, a windfall tax and a 500 billion-ruble draw from the National Wellbeing Fund.
Defense Ministry leaders rejected cuts and asked for up to three trillion rubles in additional funding.

History

Historical Context

Russia’s 1998 financial collapse began when President Boris Yeltsin’s government defaulted on $40 billion of GKOs and devalued the ruble on 17 August 1998, after a short-term borrowing binge and falling oil revenues. The crisis forced the Central Bank to exhaust reserves and spurred IMF aid. Today, President Vladimir Putin and Finance Minister Anton Siluanov confront a new deficit, recalling the 1998 fiscal shock.

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Story summary

Senior officials warned President Vladimir Putin that Russia’s war-time budget gap has hit a record level.
The Finance Ministry and central bank said current defense spending could raise the 2026 deficit to 5.9 trillion rubles.
Finance Minister Anton Siluanov proposed cutting public outlays, a windfall tax and a 500 billion-ruble draw from the National Wellbeing Fund.
Defense Ministry leaders rejected cuts and asked for up to three trillion rubles in additional funding.

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