Last year, Russia spent 7.5% of its GDP on defense, exceeding the combined defense expenditures of the four largest European NATO nations — France, Germany , Italy and the United Kingdom — which averaged just over 2% of GDP in 2025. Russia maintains a very low level of national debt, but its economy is contending with mounting headwinds — including soft non-defense investment, unfavorable labor force trends, and severely restricted access to advanced Western technology — that collectively dampen its long-term growth prospects. While it remains uncertain whether Moscow has economic capacity or the political appetite to maintain current high levels of defense spending, European NATO countries will still need to increase their military budgets to acquire the capabilities necessary to deter and, if necessary, defend against future Russian aggression, as the war in Ukraine will eventually end and free up Russian resources.