Economy
Ukraine war squeezes Russian family budgets
As Russia spends hundreds of millions on the war in Ukraine daily, its citizens are struggling with high prices and inflation.
![A woman leaves a grocery store in Tolyatti on March 31, 2022. [Yuri Kadobnov/AFP]](/gc6/images/2025/10/14/52266-afp__20220405__327k33k__v1__highres__russiaukraineconflictsanctionsautomobile-370_237.webp)
By Ekaterina Janashia |
Every day, Russia pours hundreds of millions of dollars into its war in Ukraine -- and every day, ordinary Russians pay the price at the grocery store. Inflation is eating away at family budgets as defense spending swells to record levels, leaving staples like butter, meat and bread increasingly out of reach.
Russia's daily spending on the war is a significant and rising figure. While precise numbers are difficult to verify due to the opaque nature of the country's budget, several sources provide estimates.
According to the Ukrainian Defense Ministry's Main Intelligence Directorate, the war costs Russia "a little below a billion dollars" per day. Other analyses, including those from researchers and financial news outlets, estimate Russia's daily military expenditures at $500 million to $1 billion.
The costs include ammunition, missiles, fuel and other supplies, as well as salaries and bonuses for soldiers. They also cover compensation for families in the event of death or injury, along with the production, repair and purchase of military equipment to replace what has been destroyed.
![A pedestrian walks past a grocery store in Tolyatti on April 1, 2022. For generations the Russian city of [Yuri Kadobnov/AFP]](/gc6/images/2025/10/14/52267-afp__20220405__327k39x__v1__highres__russiaukraineconflictsanctionsautomobile-370_237.webp)
Everything is 'terribly expensive'
Since the full-scale war began in 2022, prices for basic goods have steadily climbed, said Galina, a 67-year-old pensioner from Saint Petersburg who asked to remain anonymous.
"My pension is about 20,000 rubles a month [$242]. I have a fairly large apartment left over from better times, so half of it goes to rent and utilities," she told Kontur. "I don't get any benefits, so just figure out how much is left for food. You need to eat something every day, and everything has become terribly expensive."
The high military spending has had a significant impact on the Russian economy, with a large portion of the state budget -- around 30-40% -- now allocated to "national defense" and security, according to an August report by the German Institute for International and Security Affairs.
Even Russian officials admit this reality.
"Many citizens simply cannot afford food as grocery prices rise to record highs, yet we see no real fight against inflation," Sergey Mironov, a member of the State Duma and leader of the "A Just Russia - Patriots - For Truth" political party, stated in a video on his official VK page on March 13.
"People face numerous problems, including with healthcare, housing and utilities, but financial hardship is the most pressing. Store prices continue to rise steadily, while wages remain stagnant," he added.
Comments on Mironov's video echo these sentiments.
"There's no clean environment, fruit doesn't grow, and we only have fish on holidays. And to make matters worse, they even raised the retirement age," wrote Inna Petrova.
Another user, Natalya Ladushkina, wrote, "We need food ration cards for the poor. A pack of butter now costs an unaffordable 300 rubles [$3.6]. People have long forgotten about meat, and even a simple loaf of bread is 70 rubles [$0.85]."
'I don't even look at beef'
Russia's high inflation, driven by record defense spending, has pushed food prices sharply higher.
Butter has become one of the clearest symbols of the squeeze. Analysts say prices rose 25% to more than 30% in just one year, and over the past decade the cost of a kilogram jumped from 339 RUB ($4) to 927 ($11).
By late 2024 and early 2025, butter prices hit new extremes: a kilogram cost as much as 1,000 RUB ($12), a standard 180-gram pack approached 200 rubles ($2.4), and in some stores was reported at 300 ($3.6).
The price surge has fueled widespread public frustration and even cases of theft. Officials say it has also driven demand for counterfeit butter, often made with cheaper, non-dairy fats.
Russian media report that beef and lamb have largely vanished from many dinner tables, while pork, once a staple, is growing more expensive by the day.
"A 200-gram pack of butter costs 200 rubles or more. Beef is unattainable, and even milk and sour cream are very expensive," Galina said. "Sometimes I just walk past the butter. I don't even look at beef anymore."
In response, Deputy Duma Chairman Sergei Lisovsky suggested Russians turn to poultry, calling it the most affordable source of protein.
"Chicken is a good choice. It's good value because I can make both soup and a main course from it," Galina said, wondering "how often Lisovsky faces this choice."
"Occasionally, I'll have a little pork," she added. "My daughter tries to help, sometimes bringing groceries or leaving a little money. But it's hard for her -- she's raising a child, and her salary is small. "In the end, we just help each other get by."