Russia’s military expenditure surges amid ongoing war efforts

Forbes magazine reported that Russia spends $1.1 billion on rockets and $100 million on drones each month. According to Ukrainian intelligence, the average production rate of rockets in Russia ranges from 132 to 171 monthly.

Russia spends the most on Kh-101 cruise missiles, which allow for targeting across the entire territory of Ukraine. A monthly amount of $585 million is allocated for this, and an average of 45 such missiles are produced each month. Additionally, $228 million is spent on Kalibr rockets, with an average monthly production of 35.

Russia allocates $135 million each month for Iskander-M missiles, with a monthly production of about 45 units. Meanwhile, the Kinzhal missiles cost $60 million, with up to 10 units produced monthly.

$38 million is allocated for Iskander-K cruise missiles, which are produced monthly in batches of about 10-15 units. Oniks missiles cost $13 million, and Russian forces received 6 units.

$100 million is allocated monthly for Iranian Shahed 136 drones, with a monthly production of around 500.

Russia aims to win the war against Ukraine before 2026, anticipating a worsening economic situation and recruitment problems, according to experts from the American Institute for the Study of War. They referenced the words of General Kyrylo Budanov, head of Ukrainian military intelligence (HUR).

According to Budanov, the Kremlin believes that 2025 will be crucial. If Russia fails to secure victory by early 2026, it will undermine its aspirations to be a global superpower for the next 30 years.

Budanov assesses that the Russian authorities expect a deterioration in the economic and socio-political situation by mid-2025, along with increasing problems with military recruitment. According to ISW, Russia has difficulties recruiting volunteers for the war against Ukraine despite significantly increasing one-time enlistment payments (amounting to $11,000 and more).