Russia's military spending now exceeds the combined defense budgets of all European countries; last year, it increased by 42% in real terms, reaching 13.1 trillion rubles, which amounts to $462 billion USD. This is $5 billion more than the combined defense budget of all European countries, including the UK, which increased by 12% last year to $457 billion, according to the annual study by the International Institute for Strategic Studies (IISS), which was reviewed by the newspaper Financial Times.
According to IISS forecasts, this year Russia's total defense spending will increase by 13.7% and reach 15.6 trillion rubles, which will constitute 7.5% of the country's GDP and almost 40% of all federal expenditures. Experts note that such spending is already negatively affecting the economy, but Russia is still able to finance the war.
If European countries increase defense spending to 3% of GDP, this will provide an additional $250 billion, and if it rises to 5%, the amount will reach $800 billion, which is almost double the current level of Russia's spending, calculated IISS.
Germany's defense budget increased by 23% and reached $86 billion—for the first time in more than three decades, it exceeded the UK's defense budget, which amounted to $81 billion. The UK, which is the second highest defense spender in NATO after the US, currently allocates 2.3% of GDP to defense. The government plans to increase this figure to 2.5%, but the exact timing of this step has not yet been determined.
France, which traditionally ranks second in Europe in terms of defense budget size, increased its spending by 4.5% last year, reaching $64 billion. This amounts to 2% of its GDP.
Last year, Estonia, which borders Russia, spent the largest share of GDP on defense among European countries—almost 4%. Poland, which ranks second, allocated 3.25% of GDP for military needs. However, their defense budgets remain significantly smaller than those of Europe's largest economies: Estonia spent $1.7 billion, and Poland—$28 billion.
Meanwhile, since 2014, European defense spending has already doubled, and further increases may be limited by the financial capabilities of the countries.