Vladimir Putin has reportedly asked Russia's oligarchs to donate to the country's dwindling defence budget to fund its ongoing 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 will be in contact with the US about a new round of peace talks as soon as conditions allow. He added that Russia had not lost interest in talks but key issues, including territory, remained unresolved.
Russia's defence budget increased by 42% last year to Rbs13.1tn (£121bn). The economy minister, Maxim Reshetnikov, said on Thursday that Russia is considering another windfall tax this year if the rouble continues to weaken. In 2023, Russia raised Rbs320bn (£2.95bn) through a one-off 10% windfall levy on large companies.
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. Putin cautioned companies and the government to adopt a guarded approach to spending windfall gains from higher oil prices due to the Middle East conflict, warning against squandering extra revenue.
On Wednesday, Ukrainian President Volodymyr Zelenskyy told Reuters that US security guarantees for a peace deal are conditional on Kyiv ceding Donbas to Russia. Zelenskyy expressed concern that the Middle East conflict influences US President Donald Trump's strategy, which he said puts more pressure on Ukraine.
