Kiev's military spending is more than half that of Moscow

Military spending in Europe increased by 17% to $693 billion, becoming the main driver of global growth in 2024, according to a report by the Stockholm International Peace Research Institute (SIPRI).

It noted that as the war in Ukraine entered its third year, military spending continued to rise across the continent, with European military spending surpassing the level recorded at the end of the Cold War. All European countries increased their military spending in 2024, except Malta, the institute said.

Ukraine’s total military spending increased by 2.9% to $64.7 billion, equivalent to 43% of Russia’s spending. In 2024, Ukraine had the largest military burden of any country, accounting for 34% of the country’s gross domestic product (GDP).

Russia’s military spending, on the other hand, reached approximately $149 billion in 2024, which is 38% more than in 2023 and double the amount spent in 2015. This is equivalent to 7.1% of Russia’s GDP and 19% of all Russian government spending.

“Russia has again significantly increased its military spending, widening the spending gap with Ukraine. Ukraine is currently directing all of its tax revenues to its military needs. With such limited fiscal space, it will be difficult for Ukraine to continue increasing its military spending,” said Diego Lopez da Silva, Senior Researcher in SIPRI’s Military Expenditure and Arms Production Programme.

It is important to note that several Central and Western European countries have also faced the need for unprecedented increases in their military spending in 2024, after introducing new spending commitments and large-scale procurement plans. Germany’s military spending, for example, increased by 28% to $88.5 billion, making it the largest spender in Central and Western Europe and the fourth largest in the world. Poland's military spending has increased by 31% to $38.0 billion in 2024, which is 4.2% of Poland's GDP.

This was stated by Lorenzo Scarazzato, Research Fellow in the SIPRI Military Expenditure and Arms Production Programme:

"For the first time since reunification, Germany has become the largest military investor in Western Europe, which was made possible by a special €100 billion defense fund announced in 2022. Recent policy measures adopted in Germany and many other European countries indicate that Europe has entered a period of high and rising military spending, which is likely to continue for the foreseeable future.“

Arms Production in Ukraine

Ukraine has increased production of its 155mm Bogdan 2S22 self-propelled artillery system from six units per month in 2023 to 36. Ukraine’s Public Procurement Agency said the increase in production was made possible “thanks to the support of European partners” who have invested in the country’s defense-industrial base.

The report notes that 85% of the components for the Bogdan are already produced in Ukraine, and that figure is planned to increase to 95% by the end of the year.