How much is the war costing Russia and Ukraine and what is the status of their economies?

Russia set to spend nearly triple on defence at £87bn this year compared with 2021, according to US think tank

As Russia’s invasion of Ukraine approaches its second anniversary, the toll on both sides continues to mount.

On top of the many thousands of deaths, the ongoing conflict has also had a huge economic impact - and not just for the two warring sides.

While Moscow has pledged billions more in defence spending for 2024, western support for Ukraine hangs in the balance with a crucial aid package set to be voted on in Washington’s House of Representatives. It comes as Kyiv warned Vladimir Putin’s troops were advancing along the “entire front line”, while pledging to spend nearly 20 per cent of its gross domestic product to repel Russian attacks this year.

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Mr Putin said the war would be over when western countries stopped supplying Ukraine with weapons, while Kyiv has vowed to lay down arms only when its borders are secured.

So how much is the war costing Russia, Ukraine and the west?

US president urged the House of Representatives to pass a vital aid package for Ukraine after it went through the Senate (Getty Images)

Russia

Russia’s expenditure on the war is a state secret, but its overall defence spending commitment for 2024 is set to be £87 billion, according to a US think tank.

Moscow is “throwing the kitchen sink” at the war effort this year, with the total defence spending figure nearly triple its £30bn commitment in 2021, RAND researcher Clinton Reach told The Independent.

In 2023, Russia doubled its defence spending target to more than £80billion - a third of all public expenditure, according to a state document seen by Reuters.

Ukraine

Ukraine’s government approved a draft budget for 2024 in September last year, planning for higher defence spending while counting on western financial support for the expected deficit.

The draft budget puts the deficit at £33bn at around 20.4 per cent of Ukraine’s gross domestic product. More than half of all planned Ukrainian budget spending next year, or £35bn, is planned for the defence sector to fund the war effort against Russia.

“In terms of working with partners, the road is long,” finance minister Serhiy Marchenko said. “The work continues. For 2023 we have secured the financing in full. I think and hope that for 2024 we will agree on support from our partners.”

Ukraine president Volodymyr Zelensky has been urging the west to continue its support (Ukrainian Presidential Press Office)

The West

Since Russia’s invasion of Ukraine in 2022, the west has provided around £97bn in support for Kyiv. For 2024, the EU has pledged an extra £43bn in aid.

However, US support has become deeply politicised and is wavering over a £48bn aid package for Ukraine. The commitment, part of a wider deal for Israel, Taiwan and the US-Mexico border, passed through the Senate this week.

But it will still face another hurdle in the House of Representatives, where it is set to be pushed back by Maga Republicans spurred on by former president Donald Trump.