Russia's military spending is close to the indicators of the late Soviet Union, says German economist Janis Kluge. But the economy is now market, not planned, so a collapse should not be expected.
Russia's military spending has approached the level during the late Soviet Union, says German economist Janis Kluge of the "Science and Politics" foundation.
Spending is like during the Soviet Union
Kluge states that he took into account not only the direct military spending in Russia's federal budget, but also the war-related burden on regional budgets and social systems, as well as funds from the National Welfare Fund.
The expert believes that total military spending amounts to 8-10 percent of Russia's GDP, or the situation is similar to some estimates regarding the Soviet Union. In April 2025, the Stockholm International Peace Research Institute estimated Russia's military spending at 7.1 percent of GDP.
"Frankfurter Allgemeine Zeitung" recalls that there are still no accurate data on military spending in the late Soviet Union. It is assumed that they were between 10 and 20 percent of GDP.
Russia's economy will not collapse like the Soviet one
However, Kluge urges not to compare Russia's current economic problems with those that led to the collapse of the USSR. The scientist believes that the Russian economy can remain stable even if military spending is 15 percent of GDP. In this case, Russians' incomes will drop sharply, but "the country will not collapse".
The explanation is that Russia retains a capitalist market system. State intervention in the economy, partial nationalization, tariffs, and prohibitions have not yet become something that "completely changes the economic system".