{"id":18109,"date":"2014-12-18T16:23:45","date_gmt":"2014-12-18T16:23:45","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2014\/12\/18\/russia-s-financial-woes-could-hurt-defense-spending\/"},"modified":"2026-08-07T21:43:41","modified_gmt":"2026-08-07T21:43:41","slug":"russia-s-financial-woes-could-hurt-defense-spending","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2014\/12\/18\/russia-s-financial-woes-could-hurt-defense-spending\/","title":{"rendered":"Russia&#8217;s Financial Woes Could Hurt Defense Spending"},"content":{"rendered":"\n<p><span class=\"character dateline\">WARSAW \u2013 <\/span> Russia&#8217;s financial woes, triggered by cheaper oil and Western sanctions imposed on the country following its military intervention in Ukraine, could affect Russian defense spending in the long-term, local analysts say. The financial slump is mirrored in the plummeting value of the ruble, which hit an all-time low of 79 rubles to US $1 on Tuesday. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On Dec. 4, Russian President Vladimir Putin said the government is aiming to cut budget spending by &#8220;at least 5 percent of total spending in real terms.&#8221; While it is unknown how this will affect the country&#8217;s defense expenditure, Russia-based experts say long-term consequences for the country&#8217;s ongoing military modernization efforts could be serious.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Russian Defense Ministry &#8220;spends very little on foreign procurement, and the Russian defense industry is mostly using Russian components and raw materials,&#8221; said Vasiliy Kashin, project director at the Moscow Defence Brief, which is published by the Centre for Analysis of Strategies and Technologies think tank. &#8220;At the same time, the spending will most likely be affected by the general economic crisis, of which the falling ruble is just one small part.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the majority of available macroeconomic forecasts, next year &#8220;the Russian economy will be in a deep recession, which is likely to be followed by between one and two years of stagnation,&#8221; Kashin said. The government &#8220;has not said anything specific about defense, but budget cuts were mentioned.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With this in mind, some of the Russian military&#8217;s planned procurements are likely to be postponed, according to the analyst.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;I do not think that the cuts next year will be dramatic, since the government has considerable reserves,&#8221; Kashin said. &#8220;I think they will proceed with the current programs, but postpone some of the new ones, [in particular] those related to the &#8230; Navy.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Commenting on the outlook for the Russian economy, the World Bank said Dec. 10 it is forecasting the country&#8217;s gross domestic product will increase by 0.7 percent in 2014. \u25a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Email: jadamowski@defensenews.com.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>WARSAW \u2013  Russia&#8217;s financial woes, triggered by cheaper oil and Western sanctions imposed on the country following it&#8230;<\/p>\n","protected":false},"author":7,"featured_media":35904,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":46,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[46,11,33],"tags":[],"coauthors":[3389],"class_list":["post-18109","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-europe","category-global","category-home"],"acf":{"subheadline":"","legacy_arc_id":"7EXU4FHJSJEZ5DL2ZNEMK6XUMU","arc_canonical_url":"\/global\/europe\/2014\/12\/18\/russia-s-financial-woes-could-hurt-defense-spending\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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