Updated

Russia's draft 2027 budget, submitted to the State Duma, shows a roughly 40% jump in military spending as Putin prepares for a prolonged war, according to Bloomberg; officials cited Ukrainian drone strikes on refineries and warehouses as a factor behind the increased allocation. The government plans to fund the war through higher taxes, more borrowing and cuts to national health programs, with a record 34.9% of spending to remain classified and the 2026 deficit set to reach $88 billion. Separately, Meduza reported that Kremlin guidance instructs loyalist media to emphasize social benefits in budget coverage while downplaying that 44% of spending goes to military and security agencies, even as several Russian regions have cut death benefits for fallen soldiers' families by up to 95%.