Vladimir Putin has reportedly asked Russia's oligarchs to donate to the country's dwindling defence budget to sustain the invasion of Ukraine. The Russian president is expected to continue the conflict until Moscow secures the remaining areas of Ukraine's eastern Donbas region not under its control, according to the Financial Times.
At least two businessmen have told Putin they would be willing to make contributions after talks on Thursday. Putin is pressing ahead with the invasion after Ukraine refused to withdraw unilaterally from Donbas during recent US-brokered negotiations. Kremlin spokesperson Dmitry Peskov said Russia would be in contact with the US about a new round of peace talks as soon as conditions allow, but key issues including territory remain unsettled.
Russia's defence budget increased by 42% last year to 13.1 trillion roubles (£121bn). The economy minister, Maxim Reshetnikov, said on Thursday that Russia is considering another windfall tax this year if the rouble weakens. In 2023, Russia raised 320bn roubles (£2.95bn) through a one-off 10% windfall levy on large companies. In January, the Kremlin raised VAT to 22% to raise an extra 600bn roubles over three years from small and medium-sized businesses.
Russia's budget deficit for January and February swelled to over 90% of the full-year projection as US sanctions forced Moscow to sell oil at discounted prices. Putin cautioned companies and the government to take a guarded approach with windfall gains from higher oil prices due to the Middle East conflict, warning against squandering extra revenue.
Ukrainian President Volodymyr Zelenskyy told Reuters that the US is making security guarantees conditional on Kyiv ceding all of Donbas to Russia. He said the Middle East conflict impacts President Trump's decisions and that Trump is putting more pressure on Ukraine, urging the US to understand that eastern Ukraine is part of its security guarantees.
