Russia classifies expenses in order to increase war financing – ISW

This is stated in a report by the Institute for the Study of War (ISW).

The Russian Federation is creating conditions for waging a protracted war and is trying to find additional sources of funding for military needs, ISW analysts believe. At the same time, the war in Ukraine continues to take a significant part of the federal budget.

"Russian defense and security spending is the second largest budget category after spending on social programs," the report says.

According to analysts, the Kremlin tries to hide significant expenses and for this they resort to various manipulations with budget funds.

"Russia has classified an unprecedented one-third of its entire budget expenditures, and classified spending as of March 24 is twice as high as it was during the same period in 2022. The classified share of the Russian budget will account for nearly a quarter of all expenditures for the whole of 2023 and will be due to an increase in expenses classed as “other expenses in the field of national defense," the message reads.

Such actions by Moscow indicate setting conditions for waging a long war, ISW believes.

• Analysts at the Institute for the Study of War (ISW) estimate that Russian forces occupy about 65% of Bakhmut. Wagner PMC forces have likely captured the AZOM industrial complex in the north of Bakhmut and continue to advance deep into the city.