Russia, which is waging a protracted war against Ukraine, is now cutting costs even on its main mobilization resource — “cannon fodder.” Against the backdrop of a record federal budget deficit and a deepening financial crisis in the regions, a number of Russian Federation entities have sharply reduced one-time payments for those signing military contracts.
According to Ukraine’s Defense Intelligence Directorate (HUR), bonus reductions are being recorded in several regions: in Bashkiria – from 1.6 million rubles (about $18,000) to 1 million ($11,000), in the Yamalo-Nenets Autonomous Okrug — from 3.1 million ($35,000) to 1.9 million ($21,000), in Belgorod region – from 3 million ($34,000) to 800,000 ($9,000), and in Nizhny Novgorod region – from 3 million ($34,000) to 1.5 million rubles ($17,000).
At the same time, in some regions, payments are increasing: in Tatarstan, the bonus was raised to 3.1 million rubles ($35,000), in Ryazan region an additional 1 million ($11,000) is promised, and in Kabardino-Balkaria the amount was increased from 1.5 million ($17,000) to 1.8 million ($20,000). Such a policy formalizes a kind of “caste system” in which the lives of citizens are valued differently depending on their place of residence.
Economic pressure on Russia’s budget is mounting. In the first seven months of 2025 alone, the deficit reached $61 billion – four times higher than the original plan of $14.6 billion. The reasons are falling oil and gas revenues, failure to meet tax targets, and a sharp increase in military spending, HUR reports.
“The financial hole of the ‘pseudo-empire’ is growing at a record pace,” HUR stated.
Everything for the military
Last month Kyiv Post reported that Russian President Vladimir Putin plans to allocate around $1.1 trillion to rearm Russia by 2036, according to HUR chief Kyrylo Budanov.
“There is a total mobilization of Russian politics, economy, and society to prepare for a future large-scale war,” Budanov said, as cited by a HUR social media update.
As part of its military reform, Russia has already created two new military districts – the Moscow and Leningrad districts – and plans to form new divisions, units, and military formations.
“Russia seeks to dismantle the current security and economic order. To this end, Moscow is increasing its presence in Africa, primarily through its proxy forces, the Wagner [private military company] PMC and the ‘African Corps,’ and by supporting authoritarian regimes and terrorist organizations around the world,” Budanov said.
He said Russia is actively conducting hybrid information and cyber operations in other countries, using media and influencers loyal to Moscow to interfere in democratic processes.
According to Budanov, Moscow seeks to promote its own version of a world order where major powers, especially Russia, hold absolute authority, control critical resources, and make decisions with global implications behind closed doors.