Die Kriegsmaschinerie des Kremls wird angesichts des knapperen Budgets auf die Bremse treten

*From Bloomberg News reporters:*

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.

The breakneck expansion in weapons output — fueled by massive state spending, round-the-clock factory shifts and labor siphoned from the civilian sector — is running out of steam as Russia’s invasion of Ukraine nears its fourth full year. The slowdown highlights the government’s response to widening strains on the Russian economy as President Vladimir Putin continues to make maximalist demands for territory in Ukraine at US-led negotiations aimed at ending the war.