Russia plans to push December military pay into January starting in 2026

What the proposal says

A draft order from the Defense Ministry would, for the first time, move December pay into the following January beginning in 2026. Rather than arriving before the year closes under today's rules, December wages would be paid out in the Jan. 11-Jan. 21 window.

The document notes a comparable approach existed in the Soviet era. The carve-out is clear: personnel deployed in Ukraine would still receive December salaries by Dec. 25.

The Defense Ministry in Moscow did not offer a comment right away when asked.

Why the timing shift matters

The change could smooth cash management by pulling a big batch of spending into the next fiscal period. December typically represents an unusually large share of annual government outlays, and overall spending has climbed during the war.

Policy shifts can ripple through markets, rewarding investors who spot trends early. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.

Now in the fifth year of the war against Ukraine, efforts to curb the budget gap have been knocked off course by a fresh escalation, following the failure of earlier US-backed attempts to secure a negotiated settlement.

The budget backdrop and what it means for your portfolio

This year's spending is now expected to run about 10% above the original plan, reaching 48.5 trillion rubles, equal to $602 billion. The full-year shortfall is seen widening to 7.3 trillion rubles, equal to 3.2% of GDP, from roughly 2.2% as of September. The overshoot reflects heavier war-related expenditures.

Budget plans signal sustained high defense outlays ahead: an anticipated record 17.1 trillion rubles next year, followed by a modest step-down, with 2028 projected at 16.6 trillion rubles and 2029 at 16.3 trillion rubles. An explanatory note says pay for personnel will make up a 9% to 10.4% share of overall national defense spending over the next three years.

In September, President Vladimir Putin set the authorized size of the armed forces at 2,441,630, including 1,550,500 military personnel, lifting the tally of service members by over 500,000 compared with 2022.

That mix of larger forces, elevated spending, and a year-end payment shift points to persistent fiscal pressure and prolonged defense priorities that can shape the rest of the budget.

Understanding how policy decisions affect cash flow helps investors make calmer choices. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.