Vladimir Putin has reportedly asked Russia's oligarchs to contribute to the country's dwindling defence budget as the invasion of Ukraine continues. The Russian president is expected to press on with the conflict until Moscow secures the remaining areas of eastern Donbas not under its control, according to the Financial Times.
At least two businessmen have indicated willingness to make donations after talks on Thursday. Putin is understood to be proceeding with the invasion after Ukraine refused to withdraw unilaterally from Donbas during recent US-brokered negotiations. Kremlin spokesperson Dmitry Peskov said Russia remains open to peace talks but key issues, including territory, are unresolved.
Russia's defence budget has increased by 42% to 13.1 trillion roubles (£121bn) last year. The government has sought to stabilise the economy through taxation, including a 10% windfall levy on large companies in 2023 that raised 320bn roubles (£2.95bn). In January, VAT was raised to 22% to generate 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 projected annual figure, as US sanctions forced Moscow to sell oil at discounted prices. Economy Minister Maxim Reshetnikov said another windfall tax is being considered if the rouble weakens further. Putin cautioned against squandering windfall gains from higher oil prices due to Middle East tensions, urging a conservative approach in both corporate and public finances.
Ukrainian President Volodymyr Zelenskyy told Reuters that US security guarantees for a peace deal are conditional on Kyiv ceding all of Donbas to Russia. He expressed concern that President Trump is putting more pressure on Ukraine, urging the US to understand that eastern Ukraine is part of the country's security guarantees.
