Russia's military modernization efforts are entering a critical stage. The state armaments program (GPV), covering 2018-2025, is due to be finalized in September. The plan will determine not only the country's weaponry capabilities well into the 2030s, but also the strategic direction of the Russian military at large. Early indications point toward a significant downgrade in Russia's maritime ambitions as Moscow amps up its focus on continental power. As Russia evaluates where its military will be heading over the next several years, the Kremlin's primary constraint will be financial. After almost two decades of explosive growth, Russia's defense budget has started to face considerable headwinds in recent years, since a sharp decline in oil prices in 2014 curtailed the country's financial freedom. Its fiscal challenges culminated this year, when the Kremlin cut the defense budget by 5 percent.