4 views left Get unlimited views with a free account

Take your business to the next level. Explore the latest trends and actionable insights to inform business strategy and pinpoint opportunities and risks.

Defense budget of Russia (2020 - 2028, USD billion)

Industry: Aerospace, Defense and Space
Current: Macro-economic

The Defense budget of Russia attained a value of USD 47.25 billion in 2023
The indicator recorded a historical growth (CAGR) of 2.44% between...
GlobalData projects the indicator to grow at a CAGR of...

Defense budget of Russia (2020 - 2028, USD billion)

View as table

Unlock Forecasts and Access to 55 Million Statistics for >20 Industries, for $700 a month

Buy now Ask for demo

Russia defense budget analysis

The Russian defense expenditure declined drastically from 2017 to 2020. An increasingly fragile and uncertain global arena, the COVID-19 pandemic, the increasing influence of the US and NATO, and conflicts in the Middle East are the key reasons for the increase in Russia’s acquisition budget. Currently, the acquisition budget forms half of the overall defense budget. The acquisition budget allows Russia to invest in substantial new technologies and platforms, equipping the armed forces with the necessary capabilities. the Russian economy has failed to diversify and continues to be heavily reliant on oil and gas export revenues, any turbulence in the oil and gas market adversely impacts revenue prospects for the Russian energy sector.

The country is expected to spend billions of dollars to increase its military power, due to the eastward expansion of NATO and the increasing influence of the US. Russian defense modernization has traditionally been funded by booming oil and gas profits; however, the crash in the global energy market due to COVID-19 resulted in an erosion of the country’s revenues and forced the country to adopt austerity measures to cut down on government expenditure in 2020 and 2021.

Russia is acquiring numerous major defense platforms in 2021. These will enable the armed forces to meet international threats and stay highly capable and advanced in the technology they possess. Russia is heavily investing in emerging technologies such as hypersonic missiles.

Significant military modernization of Russian armed forces is being fueled by the need to bridge the technological gap between itself and the NATO alliance and especially the US. Russia is in the process of restructuring its military and inducting a vast array of modernized equipment. Russia presently lags behind the US and the NATO alliance in the area of C4ISR and its ability to sustain logistics over long distances.

The relationship between Russia and China has become increasingly asymmetric over recent years. Both nations share a similar world view and cooperate on many issues, including the procurement and sale of military platforms.

Russian defense modernization has traditionally been funded by booming oil and gas profits. However, the crash in the global energy market resulted in an erosion of revenues and forced the country to adopt austerity measures to cut down on government expenditure. Russia has borne the brunt of a Western European – EU and NATO embargo, which has virtually cut off the country from the international banking system.