Putin: ‘Western military exercises in the Baltic Sea constitute an escalation.’ Zelensky: first FP-7 missile launched

In Odessa and the surrounding region, Russia also claims to have struck the “Hosting-UA” data centre, which is alleged to have processed intelligence for the Ukrainian army. Finally, again in the Odessa Oblast, specifically in the port of Kornomorsk, the Russian Ministry claims that a ‘bulk carrier’ transporting military equipment and dual-use cargo destined for the Ukrainian forces was struck.

Last night, between 8 pm and 8 am Moscow time (7 pm–7 am Italian time), ‘Russian air defence forces intercepted and shot down 330 Ukrainian fixed-wing drones over the territories of the Bryansk, Belgorod, Smolensk, Kaluga, Tula, Kursk, Tver, Lipetsk, Oryol, Tambov, Astrakhan, the Moscow region, the Republic of Crimea and over the waters of the Black Sea”, the Russian Ministry of Defence reported.

“We reiterate our position on Russia’s war of aggression against Ukraine. As regards the communication to NATO, NATO has responded clearly and we welcome that response. Naturally, we condemn Russia’s irresponsible nuclear rhetoric. We will not fall into Russia’s trap and will not play into Moscow’s tactics based on intimidation and scaremongering.” This was stated by the EU Commission spokesperson Christian Wigand at a press briefing, in response to Russia’s declaration to NATO that it was prepared to use its “entire arsenal” following alleged exercises simulating the isolation of Kaliningrad.

“Today, thanks to joint and coordinated efforts, we have identified the means to meet Ukraine’s budgetary and defence needs for 2026. We have also reaffirmed the measures necessary to ensure the timely allocation of these funds,” according to a joint statement from Brussels and Kyiv. “For 2027, we have agreed to proceed swiftly with the allocation of €45 billion as part of the support loan to Ukraine, subject to compliance with the agreed conditions. We will also begin work to identify further budgetary and defence requirements”, the statement reads.

“All parties agreed that the other partners should also fulfil their financial commitments and step up their efforts in light of the significant challenges facing Ukraine,” the statement concluded, announcing that it had been agreed to hold monthly meetings to coordinate our joint efforts. The Ukrainian President Volodymyr Zelensky commented, noting that “the dialogue with the European Commission has yielded good results in addressing Ukraine’s financial and defence needs for 2026 and 2027”. “We have agreed on the format, the timetable and the steps needed to ensure comprehensive coverage,” he explained on X.

Russian Prime Minister Mikhail Mishustin has presented the budget for the next three years, 2027–2029, to the new Duma. The projected annual deficit is around two per cent (5,300 billion roubles in 2027, 5,100 in 2028 and 5,300 in 2029), despite further tax increases, including the introduction of taxes on passive income. The official priorities listed by the government are social spending, support for those taking part in the ‘special military operation’, defence and security requirements, commitments to healthcare and education, and the achievement of a leading position in technology.

In fact, military spending will reach a record 17,100 billion roubles (202.58 billion dollars) – 50,000 billion over three years – compared with the 12.1 billion budgeted for the current year (the actual amount spent is classified, but the total deficit for the current year will reach a record 7,345 billion roubles, equivalent to 3.2 per cent of GDP, far exceeding the 3,785 billion budgeted, which was 6 per cent of GDP).

Defence spending planned for next year has been increased by 27 per cent compared with the figure set out in the three-year budget forecast (13,500 billion roubles). Social spending – including pensions, maternity leave and support for war veterans – is, however, set to be cut by 7 per cent next year compared with the forecast, whilst education spending will be cut by 6 per cent and health spending by 6.8 per cent (according to Reuters). The allocations set out under the ‘national economy’ heading – namely new construction investments or subsidies – have fallen by 7.4 per cent. According to Vyotstka, 34.9 per cent of expenditure remains classified. It is a “balanced budget, an important condition for maintaining macroeconomic stability and reducing inflation”, the government wrote in its presentation.