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Russia’s War Budget Is So Huge It Could Almost Build Another International Space Station

Russia has allocated roughly $177.4 billion in 2026 to defense and other expenditures connected to its war against Ukraine, while more than $109.5 billion of its so-called defense budget remains classified, according to Ukraine’s Defense Intelligence on October 14.
The official Russian budget line for “national defense” stands at about $144.4 billion this year. When a broader range of war-related expenditures is included, Ukraine’s intelligence service estimates the total rises to approximately $177.4 billion.
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Of that defense spending, around $109.5 billion is contained in classified budget items, limiting public visibility into where much of the money is actually going.
Moscow has also earmarked substantial funding to sustain and expand its defense-industrial base. Roughly $189.8 million is allocated to military-industrial development, military-technical cooperation, and scientific and production programs. Those categories receive approximately $73.5 million, $75.2 million, and $41.1 million, respectively.
Additional state support is being directed toward struggling defense companies. Russia has allocated about $24.5 million to reimburse corporate expenses, $5.5 million to prevent bankruptcies, $6 million to offset loan-interest costs, and another $17.9 million for compensation payments to employees.
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Ukraine’s intelligence also identified approximately $14.9 million in funding for high-performance computing used in weapons development. Such workloads are carried out at major Russian data centers, including infrastructure operated by Yandex and Sberbank, which Ukraine says links those computing resources directly to Russia’s military-industrial programs.
Another $312 million has been set aside for applied defense research, while approximately $121.9 million is officially allocated to the development and production of various types of drones. Ukrainian intelligence cautioned that this figure does not reflect the true size of Russia’s UAV industry because additional funding comes through private investment, procurement programs, and other channels.
One particularly large allocation is intended for Russia’s National Guard, which is budgeted to receive approximately $8.19 billion for drone purchases.

According to Ukraine’s Defense Intelligence, those UAVs are expected to serve not only in Russia’s war against Ukraine but also inside Russia itself, including the protection of critical infrastructure, urban patrols, surveillance, and possible use by security forces during domestic unrest.
The scale of military spending becomes especially stark when compared with Russia’s civilian priorities. Moscow’s $144.4 billion official defense budget is more than three times the combined funding allocated to education—about $21 billion—and healthcare, at roughly $22.5 billion.
Ukraine’s intelligence noted that $144.4 billion is close to the estimated $150 billion cost of building the International Space Station. The same amount, it argued, could finance more than 150 modern cancer treatment centers instead.
Previously, reports emerged that Russia was preparing a new round of tax increases expected to extract nearly $44 billion from individuals and businesses through 2029 as the government seeks additional revenue to cover rising military spending and a widening budget deficit.
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