Putin commits to steep defense spend, eyeing gains in Ukraine and beyond

According to Reuters, Vladimir Putin announced on Wednesday that Russia's total defence and security expenditures may reach 8.7 per cent of the gross domestic product or more this year. The Russian leader stated that funds should be used cautiously and effectively.

Putin spoke on Wednesday with Defense Minister Andrey Belousov, Secretary of the Security Council Sergei Shoigu, and the highest-ranking generals. During the meeting, he stated that "Russian forces improve their positions in Ukraine in all directions every day, and their progress is going according to the plan" approved by the General Staff.

The more effectively you work on the front line, the greater our chances for a peaceful resolution of this issue - Putin said, addressing the generals. - This is what we have always aimed for, and I have always said this - he stressed.

Putin announced that appointing Belousov as minister is related to increasing defence and security spending to 8.7 per cent of the gross domestic product or more.

"Certainly, it's not 13 percent, as it was in the Soviet Union, but it is still a substantial amount. This is a significant resource, and we must use it very cautiously and effectively," Vladimir Putin stated.

"The ratio of "guns" to "butter" should be organically integrated with the overall strategy of the development of the Russian state," he added.

The Russian President announced that the army's general staff would remain the same. Gen. Valery Gerasimov, the army's chief, attended the meeting.

Last year, analysts from Bloomberg predicted an increase in Russia's defense spending in 2024 to 4.4 percent of GDP. In 2021, expenditures were 2.9 percent, and in 2023 - 3.9 percent.

Experts believe that in 2024, the Russian Ministry of Finance will allocate approximately £58 billion to defence, but this is an estimated figure, as information regarding the federal budget is not disclosed.