Putin Announces Planned Cuts to Russian Military Spending Amid Soaring NATO Budgets

MOSCOW – Russian President Vladimir Putin said Friday that Russia is planning to reduce military spending beginning next year—a move that stands in stark contrast to NATO’s decision this week to sharply increase its defence commitments over the coming decade.

Speaking at a press conference in Minsk, Putin responded publicly for the first time to NATO’s recent pledge to raise collective defence spending to 5% of GDP by 2035. NATO leaders cited growing security concerns from Russia as a central reason for the increase, saying it was necessary to build long-term civil and military resilience.

In his remarks, Putin dismissed NATO’s plan as largely self-serving. “All that money will be spent on purchases from the United States and to support their military-industrial complex,” he said. “That is their business, not ours.”

He then pivoted to highlight Russia’s own intentions. “But here is what truly matters: we are planning to reduce defence spending,” Putin said. “Not just next year, but over the coming three-year period. Discussions are ongoing among the defence, finance, and economy ministries, and while there is no final decision, everyone is leaning in this direction.”

Putin also framed NATO’s military buildup as provocative, suggesting it revealed more about Western intentions than Russian ones. “Europe is thinking about how to increase spending. We are looking at how to reduce it. So, who is really preparing for aggressive actions—us or them?”

A Claim Met with Western Scepticism

Western observers are likely to treat Putin’s comments with suspicion. Since launching its full-scale invasion of Ukraine in 2022, Russia has significantly ramped up military expenditures. In fact, its 2025 defence budget is set to hit 6.3% of GDP, the highest level since the Cold War, and military spending now makes up a staggering 32% of all federal expenditure.

Over the past several years, Russian defence factories have been running at full capacity, producing weapons around the clock. The Kremlin has also poured money into enlistment bonuses, pay incentives, and compensation for families of fallen soldiers.

Putin did acknowledge that this spending spree has come at a cost. “Yes, inflation has increased,” he admitted. “But this was the price to pay for national security.”

Russia’s economic outlook, meanwhile, is dimming. Growth is slowing sharply as falling energy revenues strain the federal budget. The finance ministry recently revised its 2025 budget deficit estimate to 1.7% of GDP, up from a previous forecast of 0.5%. Officials also slashed their energy revenue forecast by 24%, and the government plans to dip into fiscal reserves to bridge the gap. A new draft budget is expected to be released in the autumn.

Ukraine War Rages On

Despite the talk of cutting defence spending, Russia’s war in Ukraine continues unabated and has intensified in recent weeks. There has been little progress on ceasefire negotiations, and both sides remain entrenched in combat.

Putin touched briefly on the diplomatic front, expressing some appreciation for former U.S. President Donald Trump’s stated desire to end the war. “He said it turned out to be more difficult than it looks from the outside,” Putin remarked. “Well, that’s true.”

Trump recently claimed Putin was open to a peaceful resolution, but Ukraine and its European allies remain deeply sceptical. They accuse the Kremlin of feigning interest in peace while actively pursuing further territorial gains.

Putin countered that diplomatic communication has not been severed entirely. “Our negotiators remain in constant contact with the Ukrainian side,” he said. “And we are ready to return the bodies of 3,000 more Ukrainian soldiers.”

The Bigger Picture

Putin’s announcement that Russia may scale back military spending is a surprising message at a time when the Kremlin has been waging its most intense conflict in decades. But experts caution that talk of spending cuts could be more about optics than concrete policy—especially as Russia faces increasing economic headwinds.

Meanwhile, NATO’s planned defence surge, driven by fears of future Russian aggression, appears set to widen the strategic and fiscal gap between Moscow and the West. While Russia talks of restraint, its actions on the battlefield and its still-robust military budget may ultimately speak louder than words.