$550 billion for the war: how hidden military spending of the Russian Federation hit the wallets of Russians

This was reported by the Foreign Intelligence Service of Ukraine.

The agency noted that the war against Ukraine since the beginning of 2022 cost Russia about 550bn dollars, which is equivalent to 24 annual budgets of the Russian Federation for higher education or 22 budgets for health care. Much of this spending remains hidden: 59 per cent of military spending is classified.

According to open data, during the first three quarters of 2025, Russia spent 4.816 trillion rubles on "open" budget items, while it spent 7.038 trillion rubles on "closed" items. On a year-on-year basis, the amount of classified expenditures increased by 39 per cent, indicating a further expansion of non-transparent war financing.

The Russian authorities are increasingly shifting the financial burden of the war onto the population - due to rising taxes, tariffs and prices. With any public anti-war criticism penalised as "treason", there is little scope for public resistance. As a result, prices for Russian citizens rose continuously throughout 2022-2025.

In particular, Gazprom compensated for the loss of European markets at the expense of domestic consumers. The average cost of utilities in Russia has increased by 43 per cent, with an additional increase of around 14 per cent already announced for 2026. Fuel prices have risen by 29 - 35%, and this trend is forecast to continue into 2026.

Real estate prices have also risen significantly: in 2022-2025, prices rose by 50%, and another 6-7% increase is expected in 2026. In Moscow, the price rise can reach up to 20%.

The most tangible growth was recorded in the food sector. The cost of dairy products rose by 62%, meat - by 41%. Analysts predict that in 2026 food prices will continue to rise by dozens of per cent.

Against the background of economic pressure, public sentiment is also changing. According to sociological data, 54% of Russians have a negative attitude towards New Year gifts related to self-development or healthy lifestyle, which indicates a general decline in well-being and sentiment in society.