Russia’s Military Spending Hits $462 Billion, Outpacing Entire European Continent

A new assessment from the International Institute for Strategic Studies (IISS) on February 12 indicates that Russia’s military expenditures now exceed those of all European nations combined.

The report highlights the security challenges Europe may face should the United States scale back its military support for Ukraine.

According to the IISS, Russia’s total defense spending rose by 42% in real terms last year, reaching $462 billion. In contrast, combined European defense budgets, including those of the UK and EU member states, grew by nearly 12% to $457 billion, slightly below Russia’s total.

US President Donald Trump, who has pledged to negotiate a swift end to Russia’s war in Ukraine, has expressed concerns about the scale of American spending and European security more broadly. His administration has indicated that European nations should shoulder a larger share of the financial burden.

Trump has previously called for European defense spending to increase to 5% of GDP, compared to the current average of approximately 1.7%. NATO Secretary-General Mark Rutte has suggested a target of 3%. Either level would place European defense spending well above Russia’s.

The IISS projects that Russia’s defense budget will rise by a further 13.7% in 2024, reaching 7.5% of GDP and nearly 40% of federal spending. While this increase has placed a strain on Russia’s economy, the report states that Moscow can still sustain the costs of the war.

In Europe, Germany’s defense budget increased by 23% last year to $86 billion, surpassing the UK’s $81 billion for the first time in more than three decades.

However, much of this increase was due to a special defense fund, and maintaining this level of spending remains uncertain. Germany has committed to reaching 2% of GDP by 2029, up from 1.8% currently, but this target is not guaranteed.

The UK, NATO’s second-largest defense spender after the US, currently allocates 2.3% of GDP to defense, with a stated goal of increasing this to 2.5% though no timeline has been set.

France, traditionally Europe’s second-largest spender in absolute terms, increased its defense budget by 4.5% last year to $64 billion, equivalent to 2% of GDP.

Among the highest relative spenders, Estonia allocated nearly 4% of GDP to defense in 2023, while Poland spent 3.25%. However, their total expenditures, $1.7 billion for Estonia and $28 billion for Poland—remain significantly smaller than those of Europe’s largest economies.

The IISS notes that while European defense spending has increased by 50% since 2014, fiscal constraints could limit further growth. If Europe were to raise spending to 3% of GDP, an additional $250 billion would be required. A 5% target would push spending up by approximately $800 billion, nearly double Russia’s current military budget.

Earlier it was announced, that in 2025, Russia plans to allocate $147 billion, or $2.8 billion per week, surpassing most regional budgets.