In the first half of 2025, Russia’s expenditure on military personnel hit an unprecedented 2 trillion rubles (approximately $25.68 billion), as reported by Re: Russia, an analytical platform operated by Russian academics in exile.
This increase in spending, driven by enlistment bonuses, salaries, and compensation for injured or deceased soldiers’ families, demonstrates the Kremlin’s commitment to continue its military operations in Ukraine without regard to costs.
From January to June, both federal and regional budgets reportedly set aside about 400 billion rubles ($5.14 billion) for enlistment bonuses, 865 billion rubles ($11.11 billion) for military salaries, and 765 billion rubles ($9.82 billion) in support payments to the families of the fallen and wounded.
If the current expenditure trend persists, total personnel costs could surpass 4 trillion rubles ($51.36 billion) by the end of the year.
This amount would represent roughly 9.5% of the anticipated federal government budget for 2025 and account for approximately 2% of Russia’s gross domestic product (GDP).
These numbers signify a substantial increase compared to last year, with personnel costs projected to rise by 1 trillion rubles ($12.84 billion) year-on-year.
This rise comes as the Russian government introduces more appealing financial incentives to attract new recruits amidst ongoing battlefield casualties.
Re: Russia indicates that around 200,000 new military contracts have been signed in the last six months.
Analysts suggest that an effective commercial “contract for war” is crucial for Vladimir Putin to sustain offensive operations in Ukraine for a second consecutive year, despite significant losses and minimal territorial gains.
Dmitry Medvedev, Deputy Chairman of the Security Council, recently described the recruitment rate as “quite decent, good,” expressing hopes that it will remain consistent.
However, the financial commitment to maintaining troop levels has also resulted in severe human losses.
Estimates from The Economist suggest that Russian military fatalities from May 1 to July 9 may have reached around 31,000, marking it as the deadliest period of the war so far this year.
Overall casualty figures since the start of the invasion range from 900,000 to 1.3 million, including estimates of 190,000 to 350,000 deaths or permanent injuries, based on analyses from Western intelligence and independent sources.
