Full Breakdown
Putin’s Multi-Front Push to Fund and Shield the Russian War Machine
By Drooid · · How we work
Expanding the Armed Forces
A recent presidential decree raised the ceiling for Russia’s armed forces by 15,500 personnel, bringing the total number of service members to 1,550,500 and the authorized strength to 2,441,630. Since March, the military has added 52,500 positions, most of them combat posts. Ukrainian intelligence estimates that more than 8,000 North Korean troops are currently serving in Russia, with another 10,000 slated for training and deployment, and that roughly 25,000 have already rotated through Russian units.
Defense Spending and Fiscal Measures
Documents reviewed by Reuters show the draft 2027 budget projects defense spending at 17.1 trillion rubles—about 27 % higher than the 13.5 trillion rubles allocated for the previous year and the largest level since the 2022 invasion. Total defense outlays for 2027-2029 are projected at 50 trillion rubles. To finance the surge, the Finance Ministry plans to seize 30 percent of additional income earned by selected metals, mining and fertilizer producers, while gold miners face a 20 percent levy. The state arms dealer Rosoboronexport reports new contracts worth more than $13 billion between January and June, and claims over 90 percent of exported weapons systems have been battle-tested against modern Western equipment.
Tax and Energy-Data Restrictions
In the same set of decrees, the value-added tax rate was raised from 20 percent to 22 percent, and the revenue threshold for simplified-tax businesses was cut from 60 million to 20 million rubles, expanding the tax base across corporations and small enterprises. A parallel decree tightened controls on public access to energy-sector data, covering export details, buyer and seller identities, transport routes, and refinery production volumes. The Kremlin justified the move as a response to “unfriendly actions” by the United States and allied nations.
Escalating Weapon Use and Production Capacity
Russian forces launched an estimated 2,850 jet-powered drones into Ukraine last month—nearly double July’s total and eight times June’s. Despite labor shortages and sanctions, Russian defense firms have maintained output, with Ukrainian military intelligence estimating monthly production of 55-60 Iskander-M ballistic missiles and up to 50 repurposed RM-48U training missiles.
Impact on Russian Energy Output
The International Energy Agency estimates that Russian refinery throughput fell to 3.8 million barrels per day in June, the lowest level in more than two decades and about 30 percent below the previous year. Gasoline production declined roughly 20 percent and diesel about 30 percent, contributing to nationwide fuel shortages and prompting Moscow to restrict fuel exports.
These coordinated military, fiscal, and informational measures illustrate how the Kremlin is mobilizing additional manpower, financing a record-size defense budget, and tightening economic controls to sustain its war effort amid mounting sanctions and domestic resource constraints.