Russia has multiplied its arms production since the beginning of the war against Ukraine, but the defense industry is approaching its maximum capacity, acknowledged the Russian Minister of Industry, Anton Alihanov.
According to this, the military-industrial complex, which has been one of the main engines of economic growth in recent years, will soon reach maximum production volumes and will no longer be able to ensure the same contribution to the growth of the processing industry.
After it became clear that the war would be prolonged, the Kremlin directed massive resources towards the military industry. If between 2019-2021 Russia spent annually between 3 and 3.6 trillion rubles on defense, this year’s budget provides for 12.1 trillion rubles, and the amount could increase.
To cope with the ever-increasing military orders, companies in the defense industry have significantly increased salaries, triggering a competition for labor and forcing other sectors of the economy to likewise increase their employees’ remuneration.
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