*STOCKHOLM:* Russian military spending fell by a fifth last year, its firstdecline in nearly two decades, with tighter purse-strings likely to affectMoscow’s military activity ahead, a report by defence think-tank SIPRIshowed on Wednesday.
Russia has flexed its military muscles during the last few years with its2014 annexation of Ukraine’s Crimea and deep involvement in the Syrianconflict serving as examples of its more belligerent stance.
But while global military spending rose one percent to $1,739 billion lastyear, Russia’s fell 20 percent in real terms to $66.3 billion, the reportfrom the Stockholm International Peace Research Institute (SIPRI) showed.
It was the first fall since 1998, a year of a major crisis when Russia’seconomy collapsed and it defaulted on domestic debt. The following yearVladimir Putin took power as prime minister and, on New Year’s Eve,president.
Based on the government’s spending plan until 2020, defense costs areexpected to stay flat from 2017 or possibly even fall somewhat adjusted forinflation, said Siemon Wezeman, senior researcher in the SIPRI Arms andMilitary Expenditure Programme.
“Very clearly that has a direct impact on procurement and on operations.Those are the quickest things to cut,” Wezeman told Reuters.
Russia dropped to fourth place in the ranking of the world’s biggestmilitary spenders, overtaken by Saudi Arabia.
“Russia definitely has a very clear feeling it has to show that it is stilla major power, and you show that by undertaking operations in for exampleSyria, by showing up on the Atlantic Ocean with your navy,” Wezeman said.
“But I am sure that there will be serious cost cuts to those.”
Russia’s finances are still fragile following a two-year economic downturnbrought on by Western sanctions and a collapse in global oil prices. Highercrude prices helped the economy return to growth of 1.5 percent last year,short of a government target of 2 percent.
The export-dependent economy has now got accustomed to lower commodityprices than before 2014, and the budget is likely to post a small deficitor even a surplus in 2018.
President Vladimir Putin has also called for higher living standards andhigher spending on social infrastructure, such as healthcare and education.Some government officials have called for lower military spending to freeup funds for such initiatives.
The Kremlin said in March Russia would cut its defense budget to less than3 percent of gross domestic product within the next five years.
The United States remains the world’s biggest military spender by far,accounting for 35 percent of global expenditures, more than the next sevenhighest-spending countries combined. Its defense budget was unchanged in2016 and 2017 but a significant rise is expected this year.
China’s spending as a share of world military expenditure rose to 13percent last year from 5.8 percent in 2008. – Agencies