Putin is refusing to back down on his massive war spending - despite stern warnings from those close to him.

11:39, Tue, Jun 2, 2026 Updated: 12:09, Tue, Jun 2, 2026

Russia Ukraine War

Russia launched huge overnight attacks on Ukraine (Image: Ukrainian Emergency Service via AP)

Vladimir Putin has been warned that Russia's war economy could be about to collapse as money spent attacking Ukraine during the war spirals out of control. It follows a major overnight strike on Ukraine, in which Putin’s military is reported to have spent around £400 million.

Starting at around 6pm local time yesterday evening, Russia launched 73 missiles and 656 drones at Ukraine, according to Ukraine’s air force, which said 40 missiles and 602 drones were intercepted or otherwise neutralised. The deadly strikes killed at least 18 people, including two children and injured more than 100 people, marking one of Moscow's largest assaults in recent months. However, it appears the dictator won't be able to keep up strikes of such a magnitude as Russia is plunging deeper and deeper into financial trouble.

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An injured at the site of a Russian strike

Overnight Russia launched massive strikes on Ukraine (Image: MAXYM MARUSENKO/EPA/Shuttersto​ck)

Russia’s Finance Ministry and Central Bank have reportedly warned Putin of “critical risks” to economic stability as the budget deficit continues to grow rapidly, sources told Bloomberg.

Even the Kremlin’s top elite have warned Putin that after more than four years of bitter conflict with Ukraine their woeful finanical situation is spiralling out of control.

However, Putin is refusing to cut war spending and is instead ordering other departments to make cuts with the Defence Ministry demanding additional funding, according to two people close to the Russian government.

In a February letter, Finance Minister Anton Siluanov reportedly urged the government to freeze around ₽2.9 trillion ($40.8bn) in planned non-military spending this year, warning that the expected ₽2 trillion overshoot could climb to as much as ₽4 trillion in a “negative scenario,” according to the Financial Times.

Russia’s economy is slowing sharply, with the highest interest rates in two decades driving up debt levels as public services and manpower deplete.

Russian Railways (RZD), the country’s biggest commercial employer is struggling to stay on track, as pressures push the company toward a critical turning point.

Despite moving 1.31 billion passengers a year across 11 time zones RZD’s debt has surged to nearly four trillion rubles (£32billion) in debt meaning the company is in its deepest crisis in 16 years.

As Moscow is forced to borrow more money to finance the war against Ukraine, Russia’s Central Bank estimates that the country’s total external debt, covering both public and private sectors, soared by 10.4% in 2025, reaching $319.8billion.