Russia to increase reliance on military-industrial complex due to economic strain — UK intel

According to the British Ministry of Defense’s intelligence review for March 3, the ongoing economic challenges will likely cause Russia to exceed its defense spending budget in 2025.

“It is almost certain that inflation in Russia will be higher than the Central Bank of Russia (CBR) target of 4 per cent in 2025. This is despite CBR efforts to reduce inflation by increasing interest rates from 7.5 per cent in June 2023 to 21 per cent in December 2024. The actual rate of inflation in 2024 was likely higher than the officially reported figure,” the intelligence report states.

As interest rates remain elevated in 2025, pressures on businesses will increase, with a significant number of corporate defaults expected in civilian industries. This trend will likely bolster Russia’s dependence on its military-industrial complex to sustain economic activity.

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