Russia's Military Spending Surges to 50% of Budget Amid Economic Strain
Germany's Federal Intelligence Service reports that Russia's military spending for 2025 is 66% higher than official claims, constituting half of the overall budget and approximately 10% of GDP. This increase coincides with declining energy revenues and sanctions, leading to a widening budget deficit. The report highlights that military expenditures are distorting the national budget, with projections indicating a rise to 10% of GDP by 2025. The Kremlin's focus on military spending signals increased risks for Europe as economic challenges mount.
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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.
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