Russia's ambitious draft budget for 2025 to 2027 highlights a sharp rise in defense spending, projecting 25 more than the 2024 level. This accounts for more than 6 of Russia's GDP. The country has adapted its economy for war, focusing heavily on military production and circumventing sanctions since its invasion of Ukraine in 2022. Russia's inflation rate is over 9, and the central bank recently raised its key interest rate to 19. Analysts warn that Russia's unprecedented military spending could destabilize the economy, leading to higher living costs and public dissatisfaction as social spending declines.