Russia is investing record amounts of money in the war against Ukraine; however, Western sanctions significantly limit its capabilities for modernizing the armed forces. In 2025, it is planned to spend 6.3% of the gross domestic product on military purposes — the highest level since the Cold War.
This is reported by Business • Media
Technological Degradation of Russia’s Defense Sector
At the same time, due to sanctions that complicate the import of modern technologies and components, the Russian military-industrial complex is experiencing gradual technological degradation. Manufacturers are forced to replace modern weaponry elements with lower-quality analogs, which affects the effectiveness and competitiveness of the products.
“The Russian Federation will likely have to simplify and slow down its military production, come to terms with a decline in product quality, and face a certain form of ‘innovation stagnation’ in its research and development,” analysts indicate.
Impact on the Economy and Military Prospects
Despite the current ability of the Russian defense industry to create equipment that poses a real threat to Ukraine and European countries, in the long term, Russia will lose the ability to compete with the leading military powers in the world. Furthermore, the negative consequences of excessive funding in the military sector are already being felt in the Russian economy, impacting other sectors.