Russian ruler Vladimir Putin has stated that the Kremlin plans to reduce defence spending, the share of which in the national budget has reached record levels not seen since the Soviet era.

Source: The Moscow Times, an independent Amsterdam-based news outlet

Details: Putin said current military expenditures amount to RUB 13.5 trillion (US$150 billion), with Russia’s GDP standing at RUB 223 trillion (US$2.5 trillion), which equals 6.3% of GDP.

Quote from Putin: "We are planning to reduce defence spending. For next year, and the year after that and so on – for the next three years – we are planning, although there is not yet a final agreement between the Ministry of Defence, the Ministry of Finance and the Ministry of Economic Development, but overall everyone is thinking in that direction."

Details: He stressed that the increase in military spending has led to inflation, which the government continues to battle. Putin said that Russia’s GDP growth this year will slow compared to previous years, when the economy was growing by more than 4% annually.

Putin stated that the slowdown is a deliberate measure to fight inflation. Meanwhile, he mentioned NATO’s plans to raise defence spending to 5% of GDP by 2035.

Other top officials have also pointed to problems in the Russian economy. Russia’s Minister of Economic Development Maxim Reshetnikov stated that the country is already "on the brink" of economic recession. Elvira Nabiullina, Governor of the Central Bank of Russia, warned of depleted resources that had previously supported growth amid warfare and sanctions. She said Russia has run out of spare labour, idle industrial capacity and reserves from the National Wealth Fund, two-thirds of whose liquid assets have already been spent.

Alexander Shokhin, Chairman of the Russian Union of Industrialists and Entrepreneurs, said that many companies are on the verge of default. Alexey Mordashov, the main shareholder of Severstal, which is one of Russia’s largest steel and mining companies, warned of a risk of large-scale bankruptcies due to high interest rates and falling demand. Businessman Arkady Rotenberg noted that businesses are struggling to survive under expensive loans, calling the current situation "not a very good factor for business".

Background:

Russia is gradually exhausting its macroeconomic reserves, in particular the Russian National Wealth Fund (NWF), but its potential to further finance the war remains.Earlier, Russian analysts predicted that the liquid part of the National Wealth Fund could be completely exhausted by early 2026. These estimates were made against the backdrop of falling oil and gas prices.

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EU leaders have reached a political agreement to extend existing sanctions against Russia for another six months, but they did not approve the new, 18th package of restrictive measures.

Source: Radio Free Europe/Radio Liberty editor Rikard Jozwiak on X (Twitter), as reported by European Pravda

Details: Jozwiak’s sources said that the leaders had agreed to extend all current sanctions against Russia for another six months.

"No agreement among EU leaders on the latest sanctions package – 18th. Slovakia is still not giving green light. Discussions likely resume among EU ambassadors in the coming days", the journalist wrote.

Jozwiak did not mention Hungary, which had also previously threatened to block the sanctions.

Background:

Earlier, Slovak Prime Minister Robert Fico stated that Slovakia would demand a postponement of the vote on the 18th sanctions package against Russia until its concerns over gas supply after 2027 are addressed.Slovak Foreign Minister Juraj Blanár said that Slovakia was ready to support the sanctions package. However, he added that Slovakia would demand "guarantees" and EU support to mitigate the impact of a potential halt in Russian energy supplies.Latvian Prime Minister Evika Siliņa stated that although she was not sure the 18th sanctions package would be approved on 26 June, her country would continue to push for additional sanctions against Russia.

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A warehouse and office belonging to the Ukrainskyi Priorytet (Ukrainian Priority) publishing house were completely destroyed in the Russian attack that took place on the night of 16-17 June.

Source: Volodymyr Shovkoshytnyi, director of the publishing house, on Facebook

Quote: "Today I have been clearing away the ashes of 14 years of my life with my own hands, but I’m a firm believer in the Phoenix. So I am certain – Ukraine will prevail! And Ukrainskyi Priorytet will definitely rise from the ashes!"

*The publishing house has launched a fundraising campaign called Bring Back Ukrainian History.*Photo: Volodymyr Shovkoshytnyi on Facebook

Details: Shovkoshytnyi said tens of thousands of books and over 130 titles had been burned, including works about Ukrainian history from the Scythian period to the present day. Around 50 publications on the history of Ukraine from the Scythians to modern times have been destroyed.

The publishers have launched a fundraising campaign called Bring Back Ukrainian History.

For reference: Ukrainskyi Priorytet, founded by Volodymyr Shovkoshytnyi in 2011, specialises in publishing historical novels and popular non-fiction works that dismantle Russian myths and narratives. Since its foundation, it has published works by over 100 authors who have garnered various awards, including nine Shevchenko Prize winners.

Background:

On 23 May 2024, the Russians hit the Faktor-Druk printing house in Kharkiv. Fifty thousand books were burned, seven people were killed and 22 printing house employees were injured.The printing house reopened in 2025.

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