Russia has cut support for orphans to fund payments to military personnel

The authorities of the Tula Region of the Russian Federation redirected more than 54 million rubles—funds originally earmarked for social support for the region’s residents—toward one-time payments to military personnel, Russian National Guard members, and their families.

Most of this amount—41.84 million rubles—was diverted from the program providing monthly payments to guardians, custodians, and foster parents for the care of children. The remaining funds were reallocated from money intended to support orphans, adoptive parents, low-income families, retirees, and labor veterans.

The region provides payments to participants in the war against Ukraine: starting in April 2026, 750,000 rubles will be paid for severe injuries or Group I disability, and 1.25 million rubles to the families of those killed. The cuts to social assistance are taking place against the backdrop of financial problems in the Russian Federation, where local budgets ended 2025 with a record deficit of 1.5 trillion rubles.

Source: The Insider.

As a reminder, consumer sentiment in Russia is rapidly deteriorating, confidence in the economy is declining, and anxiety is growing over a possible new wave of mobilization. This was reported by the Foreign Intelligence Service of Ukraine.

After three years of unexpected economic growth, Russia is facing a sudden slowdown—war expenses, inflation, and falling oil prices have begun to weigh on an economy that, until recently, seemed resilient to sanctions.

Consumer lending in Russia has fallen to a six-year low.