Russia's military expenses have allegedly reached a scale reminiscent of the late Soviet Union, according to a German economist.
Russia's Military Spending Mirrors Late Soviet Era Levels
Russia's military spending has been on the rise, reaching levels comparable to the late Soviet Union. According to estimates, Russia's military spending as a percentage of GDP in 2024 and 2025 is approximately 6 to 7 percent, with some expert estimates placing it between 8 to 10 percent when including additional war-related costs outside the federal budget.
During the late Soviet Union, military spending often estimated in the range of 8-10 percent of GDP was a significant burden on the planned economy. This high military expenditure was part of the USSR’s total war and superpower posture, where defense took priority over civilian sectors and budget constraints.
As of 2024, Russia is the world’s third-highest military spender, with expenditures around $149 billion, or over 7 percent of GDP. This figure is expected to rise further, with Russia planning to spend an additional $1.1 trillion on rearmament from 2026 to 2036, which could push the defense share of GDP even higher, potentially to about 13 percent of GDP when combined with base military expenditures.
These high military spending levels reflect Moscow’s strategic goal for military and geopolitical dominance, akin to its Soviet-era ambitions. The increase in military spending is particularly notable given that Russia underwent a period of military budget cuts around 2017-2019, with spending sharply increasing post-2022 invasion of Ukraine.
German economist Janis Kluge, in comments reported by DW, warned against comparing Russia's current economic problems with those that led to the collapse of the USSR. However, Kluge's comments also suggest that Russia's current military spending is approaching the level of late Soviet Union. Kluge considered not only direct military spending from the Russian federal budget but also the military burden on regional budgets, social systems, and expenditures from the National Wealth Fund.
Kluge estimated that Russia's economy could remain stable even with military spending at 15% of GDP. He attributed Russia's ability to maintain stability to its capitalist market system. However, he also noted that the income of ordinary Russians would decrease significantly, but the country will not collapse.
A summary table provides a snapshot of military spending as a percentage of GDP over different periods:
| Period | Military Spending (% of GDP) | Notes | |--------------------------|-------------------------------------|---------------------------------| | Late Soviet Union (1980s) | ~8-10% | Planned economy, superpower posture | | Russia ~2017-2019 | 3-4% (approx.) | Budget cuts for social spending | | Russia 2023 | ~5.9% | Rising due to war preparations | | Russia 2024-2025 | 6-7% (official), 8-10% (including indirect costs) | High war-related spending burden | | Future 2026-2036 | Up to ~13% (with rearmament) | Large rearmament program planned |
In conclusion, Russia’s current military spending as a share of GDP has rebounded to levels similar to the late Soviet period (6-10%), reflecting heavy prioritization of defense due to the ongoing war and strategic ambitions. This marks a significant increase from the low-mid 2010s and sets the stage for sustained high defense investment in the coming decade.
- In comparison to the late Soviet Union, Russia's current military spending is mirror-like, as it ranges between 6-10% of the country's GDP.
- Unlike the planned economy of the Soviet Union, Russia's capitalist market system allows its economy to potentially remain stable with military spending as high as 15% of GDP.
- The business sector may experience significant changes due to Russia's high military spending, as General News outlets report a shift in investment priorities from civilian sectors to defense.
- The ongoing war and geopolitical ambitions are driving factors behind investing heavily in the defense industry, a trend that reflects similar economic strategies seen during the late Soviet era.
