Sharp slowdown hits Russian military-industrial complex, Ukraine warns

According to Ukrinform, the Center for Countering Disinformation under Ukraine’s National Security and Defense Council reported this on Facebook.

Production of metal goods, which grew by 31.6 percent in 2024, fell by 1.6 percent year-on-year in September.

Output of tanks and armored vehicles, which increased by 61 percent in August, dropped to 6 percent in September, a tenfold decrease.

Previously, defense industry enterprises were the main driver of the Russian economy. Now, for the first time, they are pulling indicators down. Overall industrial growth has slowed to 0.3 percent compared with more than 5 percent in 2024.

“The reason is the budget deficit, a 21 percent drop in oil revenues, and reduced government funding. The Kremlin is forced to curb spending, and even military orders no longer save the economy,” the Center noted.

As reported by Ukrinform earlier, wages at Russian defense industry enterprises are decreasing for the first time since the start of Russia’s full-scale invasion of Ukraine.

Photo: Flickr