Putin Urges Russian Oligarchs to Fund Dwindling Defense Budget Amid Ukraine War
Vladimir Putin has reportedly called upon Russian oligarchs to contribute to the nation's dwindling defense budget as Moscow continues its invasion of Ukraine. The ongoing military operation, which commenced in February 2022, aims to seize the remaining areas of eastern Donbas not yet under Russian control.
Following discussions with Putin, at least two businessmen have reportedly offered donations. Kremlin spokesperson Dmitry Peskov reiterated Russia's interest in peace talks with the United States, though he noted that critical issues, particularly territorial disputes, remain unresolved.
Russia's defense spending surged by 42% last year, reaching 13.1 billion euros (approximately 121 billion British pounds). This increase comes as international sanctions have compelled Moscow to sell oil at significantly reduced prices, thereby exacerbating its budget deficit. To stabilize public finances, the government has also considered implementing windfall taxes and increasing VAT.
Putin has cautioned both state entities and private enterprises against squandering profits from higher oil prices, advocating for a "moderately conservative approach" amidst volatile global markets.
Ukrainian President Volodymyr Zelensky has stated that U.S. security guarantees for Ukraine are contingent upon Kyiv ceding the entire Donbas region to Russia.
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