Record-high defense spending in the Russian Federation has significantly altered the country’s economic landscape, transforming it into a military economy that will remain so even after the war against Ukraine concludes. In recent years, Russia has increased the production of key types of weapons several times over, and drone production is set to reach 1.5 million units in 2024, ten times the figure for 2023.
This is reported by Business • Media
Record Military Spending and Its Consequences
- From 2022 to 2024, military expenditures in Russia reached 22 trillion rubles (over 263 billion dollars).
- For the next three years, the state budget allocates no less funding, which will increase the burden on an economy already weakened by sanctions.
- The recruitment of hundreds of thousands of workers into the military-industrial complex has helped avoid a sharp economic downturn, but a slowdown in growth rates could lead to a new crisis.
Focus on Conflict with the West
Despite the likelihood of generating revenue from the export of surplus weapons to allied countries, the Russian leadership, preparing for a prolonged confrontation with the West, prioritizes the enhancement of its own military capabilities. This was confirmed by Vladimir Putin during a recent visit to one of the oldest defense factories, where he emphasized the ongoing necessity of a strong army.
“The need for modern armed forces” will not end with the conclusion of the war.
Thus, the Russian economy continues to be influenced by military needs, and a transition to peaceful production even after hostilities cease is unlikely.