Russia slows arms spend as economy falters
Russia’s defence industry will slow dramatically in 2026 with military spending to be reined in as the economy feels the strains of the four-year war with Ukraine and falling oil and gas revenues
REVENUE (trillion roubles)
Oil and gas
Other
Oil and gas revenue plummets
29.1
8.8
36.7
11.1
37.1
8.7
40.3
8.9
42.9
9.1
45.9
9.7
2023
2024
2025
2026
2027
2028
EXPENDITURE
Defence
Other
6.6
32.4
13.1
40.2
13.6
42.3
12.1
44.1
13.5
46.1
12.9
49.4
Defence spending to fall 11%
Wartime economy spending surge of around 40%
MILITARY PRODUCTION GROWTH (%)
Computers, electronics, optics
Finished metal goods (e.g. munitions)
Transportation (e.g. tanks)
39.4
29
26.4
27.9
34.2
31.6
11.2
26.7
13.8
4.5
5.5
4.2
6.8
7.8
5.6
7.3
7.3
5.1
40
30
20
10
2023
2024
2025
2026
2027
2028
Sources: Bloomberg, Reuters, Ministry of Finance
Picture: Creative Commons
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