Written by Gleb Bryanski and Vladimir Soldatkin
MOSCOW (Reuters) – Russia hopes to cut its military spending starting next year, in stark contrast to NATO's plan to increase defense spending over the next decade, President Vladimir Putin said on Friday.
NATO allies agreed on Wednesday to increase their collective spending targets to 5% of GDP over the next 10 years, citing what they call long-term threats from Russia and the need to strengthen civil and military resilience.
Putin said in his first reaction to the move that NATO spending would “buy and support its military industrial complex from the United States”, which is NATO’s business, not Russia.
“But now that's the most important thing. We plan to reduce our defense spending. For us, we are planning for this over the next three years,” he said.
Putin said there is no final agreement between the Ministry of Defense, Finance and Economics, “but overall, everyone is thinking about that direction. Instead, Europe is thinking about how to increase spending. So who is preparing for some kind of positive action? Or are we or them?”
Given that Russia has greatly increased its defense spending since the beginning of the Ukrainian war, Putin's comments may be subject to extreme doubt.
The conflict showed no signs of an outcome and has actually intensified in recent weeks as negotiations have not made significant progress in terms of ceasefires or permanent settlements.
Putin said Russia appreciates U.S. President Donald Trump's efforts to end the war.
Putin said: “He said recently that it turned out to be more difficult than it seems to be outside.
Trump said this week he believes Putin wants to find a solution to the conflict, but Ukraine and many of its European allies believe that the Kremlin leaders have no real interest in the peace deal and intend to occupy more territory.
Putin said Russian and Ukrainian negotiators have been in contact and Moscow is preparing to return the bodies of 3,000 Ukrainian soldiers.
Economic slowdown
Russia's economic growth has plummeted due to lower energy incomes, while central banks are trying to reduce inflation.
Russia increased its national spending on national defense by a quarter in 2025, accounting for 6.3% of domestic defense, the highest level since the Cold War. Defense spending accounts for 32% of the total federal budget spending in 2025.
The defense factory has been working around the clock for the past few years, and the state has spent a lot of time on bonuses to attract soldiers to sign up and register and compensate the families of the murdered.
Putin admitted that Russia has increased its military spending as inflation increases.
The Treasury Department raises its budget deficit estimate for 2025 to 1.7% of GDP in April, from 0.5% of its energy revenue forecast and plans to obtain fiscal reserves this year to balance the budget. The next budget will appear in the fall.
(Other reports by Lucy Papachristou, Maxim Rodionov, Anastasia Teterevleva, Anastasia Lyrchikova and Elena Fabrichnaya;
