The Kremlin is running out of money: Russia cuts payments to those going to war
28 October 13:14
In the Saratov region of the Russian Federation, the authorities have reduced the amount of one-time payments for those who sign a contract with the Defense Ministry to participate in the war against Ukraine by almost five times. The decision was published on the official website of the local government, "Komersant Ukrainian" reports
Previously, those willing to fight for the Kremlin could receive 2.2 million rubles, but now they are promised only 450 thousand.
This amount of money will be given to those who sign a contract with the Russian Defense Ministry between October 28 and December 31 of this year.
This reduction is a testament to the serious financial problems Russia is facing amid sanctions and rising war costs. The Kremlin can no longer maintain the same level of incentives to mobilize new contract soldiers.
How payments have changed
february 1, 2025 – the payment was 700 thousand rubles.
August 2025 – it was increased to 2.2 million rubles to stimulate a new wave of recruitment.
october 28 – December 31, 2025 – payments were cut to 450 thousand rubles.
Watch us on YouTube: important topics – without censorship
Why Russia is cutting benefits
The economic situation in Russia is rapidly deteriorating:
- Western sanctions are limiting budget revenues.
- The war requires more and more financial resources.
- Regional budgets are no longer able to cope with the costs.
The Russian government can no longer “buy patriotism” as it did in 2022-2023. The sharp drop in the level of incentives indicates the depletion of the budgetary capacity of Russian regions. Saratov region is no exception, but rather one of the first signals of a general trend across the country.
on October 17, Deputy Chairman of the Security Council Dmitry Medvedev said that since the beginning of 2025, 336,000 people who have signed a contract with the Ministry of Defense and 28,000 volunteers have joined Russian military units.
Read us on Telegram: important topics – without censorship
on October 23, the US Treasury Department imposed sanctions on oil companies from Russia. Among other things, Lukoil and Rosneft were subject to restrictions.
Commenting on the situation, Russian President Vladimir Putin called the new restrictions by the United States an attempt to put pressure on the Kremlin. He emphasized that Washington’s actions do not contribute to strengthening relations between the two countries.
Follow us on Telegram: important topics – uncensored
As reported by Kommersant Ukrainian, the Russian economy, which has been supported by super-profits from energy exports and large-scale state investments in the military sphere for the past three years, has begun to show the first signs of a recession. Key sectors of the defense industry that provide the army with weapons are cutting production for the first time since 2022.
Sanctions are working
on October 26, U.S. Treasury Secretary Scott Bessent said that U.S. sanctions are already having a significant impact on the Russian economy. According to him, a number of refineries in India and China – key markets for Russia after the EU embargo – have stopped or reduced purchases of Russian oil.
Bessent noted that the Russian economy is in a state of wartime with virtually no growth, and the inflation rate in Russia is over 20 percent.
Falling profits: a risk for war financing
Oil and gas accounted for about 30 percent of all federal budget revenues in Russia in 2024. It is with this money that the Kremlin finances the army, drones, missiles, and military salaries. If the sanctions reduce revenues by another 20-30%, as predicted in the United States, Russia could face a funding shortfall as early as 2026.
These fears were confirmed by Russian Finance Minister Anton Siluanov: he admitted that the share of energy revenues in the budget will decrease by 30% in 2026.
Collapse in the defense industry: production of tanks and armored vehicles is slowing down
According to the Russian edition of The Moscow Times and Rosstat, in September 2025, Russia’s defense industry showed signs of stagnation for the first time since the start of the full-scale invasion.
Key indicators:
- production of metal products: down 1.6% year-on-year (in August it was 21.2%)
- production of transport equipment (including tanks): sharp decline from 61.2% to 6%
- machine building: down 0.1% after a 15.7% increase a month earlier.
Trump cancels second meeting with Putin
on October 16, the presidents of Russia and the United States held a two-hour conversation. During the dialog, “great progress” was made, Trump said. According to him, he agreed to hold a second meeting with Putin this time in the Hungarian capital Budapest.
Later, CNN reported that Lavrov’s meeting with U.S. Secretary of State Marco Rubio, which was supposed to take place before the summit, was postponed. It was claimed that the reason for this was different expectations regarding the Ukrainian settlement.
on October 23, Trump announced the cancellation of his meeting with Putin in Budapest. According to him, he had the impression that he “will not be able to achieve the desired goal,” but the head of state did not rule out the possibility of a meeting in the future. Putin, commenting on his decision, noted that Trump’s words were more about postponing the meeting in Budapest rather than canceling it entirely.
Read us on Telegram: important topics – without censorship
