70 percent more in 2024
Russia’s defense spending is expected to explode
September 28, 2023, 1:53 p.m
Russia needs a lot of weapons and even more ammunition for its war of aggression in Ukraine. However, due to Western sanctions, they are getting them less and less from abroad. Therefore, the company’s own production should be boosted – massively. Defense costs are skyrocketing.
Russia wants to increase its defense spending by almost 70 percent next year. Funding for the military is expected to increase by more than 68 percent year-on-year to almost 10.8 trillion rubles (around 106 billion euros), as the Finance Ministry in Moscow announced. They would therefore make up around six percent of Russia’s gross domestic product.
According to calculations by the AFP news agency, Russian defense spending in 2024 will be around three times as high as spending on education, environmental protection and health combined.
Russia is thereby underlining its determination to continue its offensive in Ukraine. Kremlin spokesman Dmitry Peskov justified the massive increase in defense spending with the “hybrid war being waged against us.”
Since the offensive in Ukraine began last year, Russia has ramped up arms production and invested heavily in its military apparatus despite persistently high inflation and the weak ruble.
The Russian central bank recently warned of a slowdown in economic growth in the second half of the year. The ruble has lost around 30 percent of its value compared to the dollar since the beginning of the year. The main reason for this is the high military spending and the lack of income from oil and gas sales to Europe as a result of Western sanctions.