Russia is promoting a narrative of defense spending cuts – Foreign Intelligence Service

The Kremlin has changed its rhetoric on military spending and announced plans to cut defense spending. This was reported by Foreign Intelligence Service.

In recent days, the Russian Federation has been actively promoting a new narrative about cutting defense spending. During a visit to Kyrgyzstan, Foreign Minister Sergey Lavrov emphasized that "peace-loving" Russia, unlike NATO, plans to cut defense spending. A day earlier, this message was voiced by Russian dictator Vladimir Putin.

The intelligence agency claims that the sharp change in Kremlin rhetoric followed statements by Russian Economic Development Minister Maksim Reshetnikov and Central Bank Governor Elvira Nabiullina that the country is "on the verge of recession" and that social spending has been cut by 13%.

The aggressor's military spending this year is more than $140 billion, which exceeds the national allocations for education, health care and social policy, the ICI noted.

The intelligence service added that sanctions pressure reduced revenues from the sale of Russian oil and gas by 33% compared to the same period in 2024. The wage arrears of Russian employers are growing: in January, they amounted to almost $4.8 million, and as of June 1, they exceeded $21 million. This year, Russia is increasing utility tariffs by almost 13%, and from May 2026, this figure will be 20% (+7%).

The SVR said that Moscow is trying to mitigate the consequences of the upcoming economic collapse with the help of another propaganda trick.

• The Foreign Intelligence Service expects the Russian economy to start collapsing by the end of 2025 under pressure from sanctions and military spending.
• On June 30, it was reported that Putin expanded the list of information subject to Russia's state secret law, further tightening his control over society as the war in Ukraine continues.