UK report estimates Russian hostile activity costs economy up to £2.5bn a year

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UK cost of Russian activity

Highlights

Labour MP Graeme Downie’s report estimates Russian hostile activity costs the UK economy £2 billion to £2.5 billion annually, with actual losses likely higher due to incomplete data.
Report details £1.47 billion in losses from Russia-linked cyber attacks, £400–£500 million from major incidents since 2022, and £250–£500 million from subsea infrastructure damage.
Recommendations include annual parliamentary reporting on foreign hostile activity costs, National Cyber Security Centre assessments, and new public awareness and defensive policies.

Breakdown of costs and reporting gaps

As reported by the Financial Times, Labour MP Graeme Downie’s report, titled "The Putin Tax", puts the yearly cost of Moscow-backed hostile activity against the UK at £2 billion to £2.5 billion and says the true figure is likely to be far higher because government data remains incomplete.

The report, published on Wednesday by the vice-chair of the all-party parliamentary group on rearmament, includes £400 million to £500 million in average annual losses from major attributed incidents since 2022, including attacks affecting Jaguar Land Rover, Royal Mail and NHS suppliers. It also cites £1.47 billion in losses tied to Russia-linked cyber attacks, based on industry analysis and threat intelligence, as well as £250 million to £500 million from damage to subsea communications cables and related infrastructure.

Downie says the UK lacks a consistent framework for measuring the economic impact of hostile-state activity, leaving many major incidents uncosted and denying lawmakers and the public a full view of the financial consequences. He argues the government should publish an annual report to parliament on the expected cost of hostile activity by foreign states, with greater attribution to specific countries where possible.

Cyber risks and policy implications for the UK

Cyber security specialists say the rising bill reflects the growing importance of digital attacks in Russian and other states’ efforts to inflict damage without triggering open military confrontation. Snehal Antani, chief executive of Horizon3 AI, says attacks on the auto sector, including the targeting of JLR in August 2025, show that hostile activity is becoming increasingly concentrated in the cyber domain, where the economic effects are significant even if escalation risks remain limited.

Anders Fogh Rasmussen, the former Nato secretary-general, rejects the term "hybrid warfare", saying Russia’s actions should be treated simply as warfare. His comments add to broader pressure on UK officials to respond more forcefully to activity that targets companies, infrastructure and public services.

The report also calls on the National Cyber Security Centre to publish annual assessments of foreign power-linked cyber attacks against the UK and urges officials to launch a public awareness campaign on hostile-state threats, cyber resilience and national preparedness. It recommends that the Ministry of Defence develop a methodology for assessing physical hostile activity directed at UK people, businesses, infrastructure and interests, while the government says Russia’s continued hybrid attacks are egregious and unacceptable and points to expulsions, sanctions and action against illicit finance networks.

Our earlier coverage of Russian- and Malian forces recapturing Kidal explained how Bamako regained a strategically and symbolically important northern stronghold after the Azawad Liberation Front withdrew under intensified operations. We also noted that Russia’s support for Mali has been increasing amid a wider security crisis, even as insurgent threats and civilian risks continue to complicate efforts to hold territory.

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