Kremlin’s War Machine Set to Hit the Brakes Under Tighter Budget

Russia’s defense industry is poised to slow sharply this year as the Kremlin opts to prioritize economic stability and balancing finances over further increases in spending on the war in Ukraine.

Sectors tied to state defense orders, including for military equipment and components, drones and ammunition, will see annual growth of just 4%–5% this year compared to roughly 30% in recent years, the Economy Ministry’s three-year forecast shows.