For the approximate price of $1 billion, under the supervision of 35,000 police officers in Moscow, 3 military divisions on duty around the city, 25 military jets guarding the skies 24 hours a day, with the downtown closed up for public access, and all the major freeways shut down for 4 days in a row - the Victory Day Celebration did happen.
Why was it necessary to throw a party like that? Russian federal budget for year 2004 was $95 billion - and that included expenses on defense, medicare, schools, universities, arts, etc.
First of all, with this billion Russia "purchased" front cover positive stories in all major international media. PR costs a lot, and it's been awhile since the last time Russia attracted attention with any good news.
Second, Russian nation faces so many problems, that it's much easier to distract it with big flashy party, brining back the imperial feeling of power, than actually trying to solve the issues.
And the third reason is Russian veterans. They have been undermined and mistreated for the past 14 years. Russians tend not to plan things far in advance and not to make commitments that involve long-term investments. Can government and private businesses find extra billion a year to let the old heroes enjoy their last days? Yes, of course they can afford it, but can they make it consistent? No. That's why it's much easier to show the single overwhelming emotional act of "care", instead of investing money in something that clearly will give no return.
They could've spent the billion differently this year, but looks vs. content is an everyday question for the nation. There just isn't enough money to target both. And Russians are always very clear in their choice, if it comes to impressing someone: PR is more important than truth. Did the world leaders enjoy the show? Sure they did. Did international media make good slide shows? Yes. Then who cares about the ones who actually won the War?
Celebration of Victory Day in Moscow was covered by all major media in the US:
