Russian '09 Defense Spending to Reach $50 Billion

NEWTOWN, Conn. --- Initial reactions to the Russia-Georgia conflict in August 2008 were that the Russian military had rebuilt itself into a formidable force capable of projecting power throughout the former Soviet space. However, more thoughtful reviews conducted by Western and Russian analysts suggest that the event, termed the "August War" by the Russian press, may instead signal a watershed development in the rebuilding of the Russian military.>> As noted by Novaya Gazeta's defense reporter, Pavel Felgenhauer, "Defense spending has multiplied since 2000 ... but the results have been really meager." Between 2000 and 2003, the Kremlin's defense expenditures increased from approximately $5 billion to just under $12 billion; between 2004 and 2008, defense spending levels grew from $14.6 billion to just over $40 billion through continued supplemental funding.>> However, with the exception of specific military units and high-profile military programs such as the Borey-class SSBN, Su-34, and Bulava ICBM, the Russian military has seen little return on its growing investment. It has been unable to meet timeline objectives for establishing a professional force, and estimates suggest that between 70 and 85 percent of its vehicles and aircraft are over 25 years old.>> Furthermore, despite the Kremlin's efforts, the technology gap between the Russian armed forces and their Western counterparts has continued to grow. In addition, surging inflation rates, which are approaching 14 percent annually, has seriously undercut the real value of defense expenditures, causing further delays in the development of new military programs and deployment of new technologies to the Russian military.