In his first reaction to the decisions at the NATO Summit, Putin says he wants to reduce military expenses. “But now it comes what is more important”

President Vladimir Putin said on Friday that Russia intends to reduce military expenses starting next year, in contrast to the NATO plan to increase investments in defense in the next decade, reports Reuters.

NATO member states decided on Wednesday to set their goal to allocate 5% of GDP for the next ten years, invoking the risk of long -term Russia and the need to strengthen civil and military resilience.

In his first reaction to the NATO decision, Vladimir Putin said, in a press conference at Minsk, that the increase of the Alliance's expenses will mean “acquisitions in the United States and support for the American military-industrial complex”-a question that, in his opinion, concerns NATO.

“But now is what is more important: we intend to reduce the defense expenses. For us, next year and the one after, in the next three years, this is the direction we are going,” he said.

Putin said that there is no final agreement between the ministries of defense, finance and economy, “but, in great lines, everyone thinks in this direction. And Europe, on the contrary, thinks how to increase their expenses. So who is preparing for aggressive actions?”

However, Vladimir Putin's statements are viewed with a deep skepticism in the West, given that Russia has significantly increased the defense budget from the beginning of the Ukraine.

The conflict gives no signs that it would approach the end and, on the contrary, has intensified in recent weeks, while negotiations have not visibly advanced to an armistice or a sustainable solution.

Putin said that Russia appreciates the efforts of US President Donald Trump to put an end to the war. “He recently said he turned out to be harder than he seemed from the outside. Well, he's right,” commented the Kremlin leader.

Trump said this week that he believes that Putin would like to find a way to end the conflict. Ukraine and most of its European allies believe, however, that the Russian leader does not truly pursue a peace understanding and that he is determined to conquer even more territory.

Putin also said that Russian and Ukrainian negotiators are in permanent contact and that Moscow is ready to return the bodies of another 3,000 Ukrainian soldiers.

Record expenses for defense

Russia is facing an accentuated slowdown in economic growth, in the context in which the budget is under pressure due to the decrease of energy income, and the central bank tries to reduce inflation.

In 2025, the state's state expenses were increased by a quarter, reaching 6.3% of GDP – the highest level since the Cold War. The defense represents 32% of the total expenses provided in the federal budget for this year.

Armament factories have been working non-stop for several years, and the state has allocated significant amounts for bonuses meant to attract recruits and compensation offered to families of killed soldiers.

Putin acknowledged that the increase in military spending was paid at the price of higher inflation.

The Ministry of Finance revised in April the estimation of the budget deficit for 2025 to 1.7% of GDP, compared to 0.5% previous, after reducing by 24% the forecast regarding energy income. In order to balance the budget, the authorities intend to call this year to the tax reserves. The draft budget for the following year is to be presented in the fall.