German intelligence agency: Russia understates military spending

Russia's military spending in recent years was up to 66% higher than indicated in its official defence budget, according to an analysis by Germany's BND intelligence agency.

The BND said that items such as construction projects by the Defence Ministry, military IT programmes and social benefits for members of the armed forces were not included in defence spending.

Instead, they were recorded in other parts of the budget, the agency said in an analysis it has been conducting for some time.

According to the BND, one reason for the discrepancy is that Russia's interpretation of defence spending differs significantly from that of NATO.

In addition, official Russian data on defence expenditure is often distorted and requires further assessment, the agency said.

BND says Moscow's military spending has surged

Since the start of Russia's war against Ukraine in February 2022, the country's defence budget has risen sharply each year, the BND said.

The agency estimates Moscow's military spending last year at around €250 billion ($296 billion), equivalent to roughly half of the state budget.

That would represent about 10% of Russia's gross domestic product (GDP), the BND said.

By comparison, military spending accounted for around 6% of GDP in 2022, the year the war began. The share rose to 6.7% the following year and to 8.5% in 2024.

According to the BND analysis, the funds are being used not only for the war against Ukraine but also to expand additional military capabilities, particularly in areas close to NATO's eastern flank.

The German agency said the figures offer concrete evidence of the growing threat Russia poses to Europe.