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Russia announces deepest defence budget cuts since 1990s

16 March 2017

Figures released by the Russian Federal Treasury have confirmed that Russia's defence budget has been cut by 25.5% for 2017, falling from RUB3.8 trillion (USD65.4 billion) to RUB2.8 trillion.

The reduction represents the largest cut to military expenditure in the country since the early 1990s.

The reduction follows an extended period of large increases to Russian defence spending with growth having achieved an average rate of 19.8% a year since 2011 in nominal terms. Despite the cut, the 2017 budget will remain about 14.4% higher than the level of defence spending seen in 2014 in nominal terms.

The Russian government initially outlined plans to reduce defence expenditure in the draft of the three year budget for 2017 to 2019 released in October 2016.

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