President Vladimir Putin warned this month that Russia is prepared for a direct military conflict with Europe if one were to begin, while defence chief Sergei Chemezov said the West underestimates Russia’s military-industrial capacity.
Nearly four years into the invasion of Ukraine, Russia’s military spending has surged to post-Soviet highs, rising almost 300% from 2021 to 13.5 trillion rubles ($147 billion) planned for 2025.
High wages have drawn workers into defence factories, pushing employment in the military-industrial complex to about 3.8 million people, or 5% of the workforce. Analysts describe this as a new economic model driven by military production, which powered growth in 2023 and 2024.
However, momentum is fading, with industrial output growth forecast at just 1% in 2025 and recruitment in defence firms falling sharply. Structural problems, including corruption and procurement failures, are also emerging, highlighted by recent moves to nationalise a key defence supplier.
T-90M Proryv tank at the Uralvagonzavod plant. Marina Moldavskaya / TASS
PLEASE SUBSCRIBE TO OUR FREE DAILY NEWSLETTER: If you would like to support our independent journalism at Good Morning World, please subscribe to our daily newsletter. It’s FREE and appears 7 mornings a week. As we prepare to install a fully-automated sign-up, in the meantime please send an email with the word SUBSCRIBE to ianrbrodie@gmail com.