Russia braces for enduring sanctions amid soaring war costs
Western sanctions imposed on Russia due to its military actions in Ukraine will not be lifted anytime soon, said Andrei Kostin, head of VTB Bank, the second-largest lender in Russia, in an interview with Reuters.
The head of the Russian bank stated in an interview with Reuters that Western sanctions imposed on Russia due to its military actions in Ukraine will not be lifted anytime soon.
Kostin also mentioned that, in his opinion, Russian currency reserves, frozen in the West after the outbreak of the war in Ukraine, will not be returned.
"In the West, they say, let's pay for Ukraine’s reconstruction from the reserves. And they will present such a bill that even the reserves won't be enough," said Andrei Kostin, head of VTB Bank, in an interview with Reuters.
This is how much Putin’s war costs Russia
The law on Russia’s federal budget signed by Vladimir Putin provides for a 25% increase in military spending compared to the current year, reported Reuters, citing a legal act published on Sunday in the online government journal.
The independent Russian portal Meduza reported that defence spending in 2025 is about 13.5 trillion rubles, which is about 172 billion CAD, constituting about 6.3% of Russia's GDP.
Meanwhile, in 2026, military expenditures are expected to be 12.8 trillion rubles (164 billion CAD), and in 2027 - 13.1 trillion rubles (168 billion CAD). In total, Russia intends to allocate at least 40% of the budget for defence and national security between 2025-27.
