Russian President Vladimir Putin has reportedly called upon the nation's oligarchs to make substantial donations to the federal budget, aiming to stabilise Russia's financial situation as the ongoing war in Ukraine continues to escalate defence expenditures. According to reports from Russian media outlets, this request was made during a closed-door meeting held on Thursday with leading business figures.
Soaring Defence Costs and Economic Pressures
The conflict, which began with Russia's full-scale invasion in February 2022 and has now persisted for five years, has driven defence spending to unprecedented levels. In 2025 alone, these costs surged to 15.5 trillion roubles, equivalent to approximately £144 billion. This staggering increase places immense strain on Russia's economy, which is already grappling with declining revenues from energy sales and a broader economic slowdown.
These economic challenges are further compounded by reduced tax income from various sectors, prompting the Russian government to consider austerity measures. Officials are reportedly evaluating a potential 10% reduction in all "non-sensitive" spending within the 2026 budget, with final decisions contingent on the stability of oil price increases influenced by the Iran war.
Oligarchs Step In to Bolster Budget
In response to the financial crisis, oligarchs are emerging as key contributors to the national budget. During the meeting with Putin, billionaire Suleiman Kerimov pledged a donation of 100 billion roubles, or about £922 million, as reported by The Bell online outlet. Additionally, metals magnate Oleg Deripaska agreed to contribute when directly asked by the Russian leader, according to sources cited by the Financial Times.
These donations are seen as a critical boost to Russia's finances, providing much-needed support as the government navigates the economic fallout from the war. Putin has reportedly reaffirmed his commitment to the military campaign, stating that Russia will continue fighting until it gains control over the remaining areas of Ukraine's eastern Donbas region not currently under its authority.
The involvement of oligarchs highlights the deepening ties between the Kremlin and the business elite in funding the protracted conflict, underscoring the severe financial toll of the war on Russia's economy and its reliance on private wealth to sustain military operations.
