Russia Policy Monitor No. 2737

Related Categories: Democracy and Governance; Economic Sanctions; Energy Security; Europe Military; Human Rights and Humanitarian Issues; Military Innovation; Warfare; Russia; Ukraine

RUSSIA SLASHES CIVILIAN RESEARCH FUNDING
Exorbitant military spending on its war against Ukraine is creating a growing budget deficit and forcing the Russian government to cut funding for eight of its key "technological leadership" projects. In 2025, these civilian projects received only $2.60 billion in funding, down from the $4.18 billion that had been allocated to them under the federal budget, the Moscow-based Center for Macroeconomic Analysis and Short-Term Forecasting (CMASF) has estimated. The Kremlin's planned space technology project was the hardest hit, receiving none of its expected $129 million in funding. Other projects that saw funding declines include initiatives dealing with automation, material sciences and chemistry. The only program of note not affected focused on drones; at a time when unmanned platforms are dominating the battlefield the government's drone technology project received its full allotted funding, plus an additional $39 million. (The Moscow Times, July 24, 2026)

NORTH KOREA PLANS TO SEND MORE TROOPS TO RUSSIA
According to Ukrainian President Volodymyr Zelenskyy, Russia is preparing to bring in an additional 30,000 North Korean troops to bolster its war on Ukraine, as well as importing more North Korean missile launchers. The revelation comes on the heels North Korea Foreign Minister Choe Son-hui's recent four-day visit to Moscow, during which she met with both President Vladimir Putin and Russian Foreign Minister Sergey Lavrov. The two countries inked a mutual defense pact back in in June 2024, and North Korea has already supplied an estimated 20,000 troops and military engineers to buttress Russia's war effort. (Yonhap News Agency, July 26, 2026)

CONDITIONS IN CRIMEA WORSEN
As the Ukrainian armed forces continue their campaign against Crimea's infrastructure, hundreds of thousands of people in the Russian-occupied territory are experiencing power outages, water shortages, and internet loss. Ukraine's campaign against Crimea began in June and is mostly targeting Russian military bases in the north of the peninsula. Crimean officials are not publicizing the extent of the blackouts, though a top Russian diplomat told state-owned news agency TASS that Ukrainian strikes cut power to the homes of 1.4 million Crimeans in a single week. Satellite imagery analysis by independent news outlet Meduza indicates that nighttime illumination across the peninsula fell by over 80 percent in early July. The strikes have left the Russian government struggling to meet residents' basic needs. (New York Times, July 27, 2026)

MOSCOW'S TURN FOR LAWFARE
Over the past four-and-a-half years, the government of Russian President Vladimir Putin has faced broad international condemnation for its war on Ukraine, including indictments for Putin and other key officials by the International Criminal Court and other judicial bodies. Now, the Kremlin is returning the favor. "The Russian foreign ministry says that Moscow is now finalizing plans to files suit in the International Court of Justice against Estonia, Latvia and Lithuania for their treatment of ethnic Russians," notes Paul Goble in his Window on Eurasia blog. Russian officials say their government is "completing the pre-litigation phase and expects to file charges by the end of this year or the beginning of next." (Window on Eurasia, July 17, 2026)

[EDITORS' NOTE: The Russian initiative is a reaction to Baltic fears of a potential Russian "fifth column" in their countries, which has led those governments to enact a variety of measures in recent years, such as those curtailing use of the Russian language for public, educational and institutional use.]

UKRAINE HITS RUSSIAN LOGISTICS
Ukrainian forces recently struck two warehouses belonging to Russian online retailer Wildberries, according to a company spokesman as well as Russian oblast governors. One of the warehouses was located nearly 750 miles (1,200 kilometers) from the Ukrainian border. The strikes appear to be part of a larger Ukrainian operation to disable Russian logistics, while Ukrainian officials have determined that Wildberries – Russia's version of Amazon – is playing an active part in supplying the Russian military. Ukrainian forces have reportedly destroyed over a tenth of Wildberries' storage capacity since mid-July. (The Moscow Times, July 30, 2026)

RUSSIA-UKRAINE DRONE WAR SPILLS OVER INTO FINLAND
Finnish authorities recently closed a section of the Nordic country's southern airspace and restricted maritime traffic due to a drone threat near its common border with Russia, a spokesman for the Finnish military announced. Over the last year, as Ukrainian drones targeting Russia have accelerated, some have drifted into the airspace of neighboring states, leading to heightened concerns that the war will spill over onto the territory of NATO states. Ukrainian and Alliance officials believe Russian signal jamming has likely contributed to the Ukrainian drones veering off-course, which Russia itself has attempted to hide any involvement in the incursions. (Defense News, July 28, 2026)