Russian President Vladimir Putin has set aside a third of all government spending for the defense budget as the Russia-Ukraine conflict has exhausted both sides' resources nearly three years after it began.
The Russian budget for 2025 allocates about 126 billion USD (13.5 trillion rubles) for defense - accounting for 32.5% of government spending.
The defense budget is about $28 billion (3 trillion rubles) higher than the previous record set this year.
The next three-year budget forecasts a slight decrease in military spending in 2026 and 2027. Lawmakers in both houses of Russia's parliament approved the budget.
Russia's war in Ukraine is the largest conflict in Europe since World War II. Currently, Moscow is gaining victory at key points along the frontline and conducting a counterattack in Kursk province - the only place Kiev has achieved great military success this year.
But the slow, persistent war often called a spent war, in which both sides try to weaken the other has exhausted both countries resources.
Ukraine has always been at a weak position in both material and manpower, despite receiving billions of dollars in aid from its Western allies, including more than half a billion USD in new military equipment pledged by Germany on December 2.
It is not yet known how much more US aid will be provided after President-elect Donald Trump takes office.
Meanwhile, Russia has more weapons, ammunition and personnel - but the pressure on the country's economy and population is increasing.
Russia has sharply increased military spending over the past two years and its economy is showing signs of being overheating: inflation is at a high level and companies are facing a labor shortage. To control the situation, the Russian Central Bank raised interest rates to 21% in October, the highest in decades.
Meanwhile, Ukraine continues to receive significant military support from its allies.
German Chancellor Olaf Scholz visited Kiev for the first time in more than two years on December 2, pledging to provide more than 650 million euros ($684 million) in military equipment to Ukraine.
Mr. Scholz said that Germany will provide more air defense systems - including the US-made patriot system - to Ukraine next year.
The German prime minister's visit comes after he angered Ukrainian officials last month during a phone call with Russian President Vladimir Putin, ending Europe's years-long efforts to isolate the Russian president after the outbreak of the Ukrainian conflict in 2022.
Speaking with Ukrainian President Volodymyr Zelensky at a press conference in Kiev, Chancellor Scholz said he used the phone call to emphasize to Mr. Putin that "Ukraine must be an independent state" and "Russia must end the war and withdraw troops".
