Russia's arms production slows for the first time since 2022, reports say
Photo: Russia's defense industry has begun to cut production for the first time since the start of the war (Getty Images)
For the first time since 2022, Russia's military-industrial complex has unexpectedly faltered. Although it has become the main driver of the Russian economy thanks to sky-high spending on state defense orders from the budget, Russian media reports.
Citing data from Rosstat, the agency writes that for the first time since the start of Russia's full-scale invasion of Ukraine, industries related to the military-industrial complex have entered a period of stagnation or decline in production. Before this, they had shown double-digit growth rates for almost three years in a row.
For example, the production of other vehicles (including tanks and infantry fighting vehicles) slowed down more than 10 times in September, 6% compared to 61.2% in August.
Analysts say that the data on the military industry looks shocking. In September, the growth rate of Russia's military-industrial complex unexpectedly began to slow down, from 2.4% in August to 0.4% in September.
Russian bankers suggest that the industry's serious problems are related to budget constraints. They predict spending cuts in the fourth quarter to stay within the budget plan, which could lead to an economic slowdown.
In addition, analysts predict an even greater blow to the Russian economy due to new US sanctions, which will cause problems for Russia with oil sales to India.
Sanctions against Russia
On the night of Thursday, October 23, the US Treasury Department announced new sanctions against Russia to force Vladimir Putin to sit down at the negotiating table with Ukraine.
The new sanctions target Russian giants Rosneft and Lukoil, as well as a large number of their subsidiaries.
Russia's Vladimir Putin responded by saying that the new US sanctions would not significantly affect the Russian economy.
US President Donald Trump commented, "I'm glad he feels that way. That's good. I will let you know about it in six months from now. Let's see how it works."
