Putin digs into oligarchs' pockets, seeks funds for war in Ukraine

As the war in Ukraine enters a protracted and costly phase, authorities in Russia are intensifying efforts to secure new financial resources to support military operations.

According to reports from The Bell agency, during a closed-door meeting held on Thursday evening, President Vladimir Putin asked Russian oligarchs to contribute directly to the state budget to cover the rising costs of the war.

The report notes that one of Russia's most prominent billionaires, Suleyman Kerimov, has pledged around 100 billion rubles, which translates to approximately 1.23 billion US dollars.

Kerimov, like many other Russian oligarchs, built his fortune in the period following the collapse of the Soviet Union.

The Russian economy is facing growing challenges due to the protracted war and sanctions imposed by Western countries. Revenue from energy exports, one of the main pillars of the Russian budget, has declined, while military spending has increased significantly.

According to Reuters reports, the Russian government is considering a cut of about 10 percent in “non-sensitive” spending for the current year as part of efforts to stabilize public finances. Final decisions are expected to depend on fluctuations in global oil prices, also affected by tensions in the Middle East.

Experts estimate that Russia's economic model, oriented towards a war economy, is creating a double pressure: increased military spending and shrinking revenues from civilian sectors.

According to various media sources and international analyses, Moscow intends to continue the military offensive until it secures full control over the Donbas region in eastern Ukraine.

This strategy requires significant financial and logistical resources, forcing the Kremlin to seek alternatives for financing the war – including forced or “encouraged” contributions from economic elites.

Media reports have highlighted that the war in Ukraine has significantly changed the relationship between the Russian state and the oligarchs. While in the past they enjoyed a high level of economic autonomy, they are currently facing increasing pressure to directly support state policies.

At the same time, some analysts believe that this approach could signal a new phase of economic centralization in Russia, where private resources are mobilized for state purposes, especially in the context of a protracted conflict.

As the war continues with no imminent resolution on the horizon, the Russian economy is expected to remain under continued pressure.

Balancing funding for military operations and maintaining economic stability will be a key challenge for the Kremlin in the months and years ahead.

In this context, the demands on the oligarchs and the budget austerity measures signal that Russia is entering a deeper phase of the war economy, with far-reaching consequences both domestically and internationally.