The Kremlin is cutting infrastructure funding amid war-related expenses
Russia is seeing a reduction in government spending on road infrastructure, particularly on programs for the construction and repair of federal highways, which, according to media reports, is linked to rising military spending due to the war against Ukraine.
The Russian government has adopted a corresponding decision. According to an order issued by Prime Minister Mikhail Mishustin, spending on the maintenance of the federal road network will be cut by 11 billion rubles this year. In 2027, funding will be cut by another 20 billion rubles.
In total, over the next six years, the amount of funds allocated for road construction will decrease by 100 billion rubles. It was within the framework of this program that the Russian authorities planned to build and reconstruct more than 2,000 km of roads.
The Foreign Intelligence Service noted that Russian statistics on road construction often do not reflect the actual situation. For example, based on last year’s results, the relevant Russian agencies reported a 14% increase in road construction and repair, which allegedly amounted to about 28,000 km.
However, as the intelligence agency notes, only 220 km of this total were new federal highways. By comparison, China builds about 26,000 km of new roads each year.
The SZRU paid particular attention to new initiatives by Russian lawmakers. According to the agency, the State Duma is already working on legislative changes that could allow citizens to repair roads on their own without the risk of being fined.
Currently, individuals face a fine of 5,000 to 10,000 rubles for unauthorized repair of potholes, while the penalty for legal entities can reach 300,000 rubles.
According to Ukrainian intelligence, this initiative indicates an attempt by the Russian authorities to partially shift the functions of government agencies onto the population due to a lack of budgetary resources.
The SZRU believes that this approach could spread to other sectors. In particular, housing and utilities are cited as the next sector where the Kremlin might resort to similar measures.
According to the agency, the funding shortfall for modernizing Russia’s public utility infrastructure has already reached approximately 4.5 trillion rubles. Against this backdrop, rising military spending is putting increasing pressure on the federal budget, forcing the government to find funds by cutting civilian programs.
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