Russia’s missile and drone barrage on Ukraine on Monday, Aug. 26, wasn’t just one of the largest since the war began — it came with a hefty price tag. Ukrainian estimates put the cost of the attack at around $1.3 billion, highlighting the enormous financial toll of Russia’s ongoing military campaign. The assault, which targeted critical energy infrastructure, involved 236 missiles and drones.

Ukraine successfully intercepted 102 missiles and 99 drones during the attack, but the barrage still caused significant damage. The most expensive component of the operation was the 77 Kh-101 cruise missiles, which cost an estimated $1 billion. The attack also included 28 Kalibr cruise missiles, launched from submarines and surface ships, adding another $182 million.

Despite Ukraine’s defensive success, Russia’s Black Sea Fleet remains a significant threat. Although Ukraine claims to have destroyed or damaged a third of the fleet using naval drones and anti-ship missiles, the fleet still plays a central role in Russia’s military strategy. It has adapted by relocating to the eastern Black Sea, launching missile strikes from a safer distance.

This shift allows Russia to continue inflicting damage with its submarines and surface vessels, despite growing logistical and financial challenges.

Russia’s financial burden extends beyond this attack. U.S. defense officials estimated in February that Moscow had spent $211 billion on military operations since the war began. The Russian economy is also projected to lose $1.3 trillion in potential growth by 2026 due to sanctions and reduced trade.

Despite these setbacks, Russia’s defense industry has ramped up production at an unexpected pace. The defense budget has tripled, now making up about 6% of the country’s GDP, and the workforce in the defense sector has grown to nearly 3 million people. This increased production capacity has allowed Russia to replenish its military faster than analysts expected.

In addition to its domestic efforts, Russia has received military support from allies like Iran and North Korea. Iran has supplied drones, while North Korea has sent artillery rounds, both of which have helped Russia maintain its operations. Recent reports suggest Russia plans to build 6,000 drones by next summer and is on track to produce at least 3 million artillery rounds or rockets annually.

While the financial toll is severe, Russia’s economy has increasingly focused on building war machines, bombs and ammunition, allowing it to sustain its military campaign as the war grinds on.