Russia's Military Spending Surges to 50% of Budget Amid Economic Strain
Germany's Federal Intelligence Service indicates that Russia's 2025 military budget is 100 billion euros ($115.6 billion) higher than stated, comprising half of its overall 250 billion euro budget and about 10% of GDP. Military spending has risen annually since the invasion of Ukraine, with figures hidden in other departmental budgets.
Concurrently, falling energy revenues due to sanctions are exacerbating the federal deficit. In 2025, military spending could rise to 10% of GDP, a stark contrast to European NATO countries' 5% target by 2035.
The Kremlin plans significant defense spending for 2025, with no signs of restraint despite economic pressures. The government has begun selling gold reserves to fund military initiatives, and inflation has reached 9.5% due to high military expenditures.
