When Vladimir Putin takes the stage at a major public event, little is left to chance. Speeches, questions and answers are usually choreographed down to the smallest detail. Putin’s appearance at the Eastern Economic Forum in Vladivostok on September 3 was no exception. The plenary session began with a largely boilerplate speech by Putin on the socio-economic development of Russia’s Far East. But when Putin left the podium and returned to his seat on stage, the moderator immediately shifted the discussion to a different topic. He asked Putin about the state of the federal budget, pointing to the rapidly widening hole in Russian government finances.
The choice of question was certainly no coincidence. The Kremlin apparently wanted to send a reassuring message about the budget. “There is nothing critical here,” Putin told the audience of economic and financial elites gathered in the plenary hall in Vladivostok.
But Russia’s economic elites have plenty of reasons to be worried: The fiscal situation is deteriorating quickly as the costs of the war continue to soar. Newly released data on Russian spending in the first half of 2026 shows that military spending rose by 30 per cent compared with the same period last year, reaching 10.7 …read more
Source:: German Institute for International and Security Affairs
