MOSCOW, September 17 (RIA Novosti) – Russian military spending will grow in 2015 as planned despite the economic problems the country is currently facing, the Vedomosti newspaper reports Wednesday citing a note to the draft 2015-2017 federal budget.
The national defense allocations for the federal budget are planned to increase by 21.2 percent next year, reaching 3.032 trillion rubles ($79 billion).
"This means real growth in defense spending, since, according to the draft, inflation is expected to stand at 6 percent in 2015. Meanwhile, in 2016 and 2017 the real growth rate in military spending will be negligible and close to inflation: 7.8 percent in 2016, reaching 3.23 trillion rubles [$84 billion], and 4 percent in 2017, reaching 3.36 trillion rubles [$87 billion]," Vedomosti reports.
Russia's defense industry has become the target of new Western sanctions, introduced earlier this month. The European Union has barred three major Russian defense companies (Oboronprom, United Aircraft Corporation and Uralvagonzavod) from seeking finance on European capital markets.
The new EU restrictions also include a ban on the sale of dual-technology equipment to nine Russian defense companies, including the Kalashnikov Concern and Almaz-Antey.
The United States has blocked the assets of several Russian defense firms, including Almaz-Antey and the Tikhomirov Scientific Research Institute of Instrument Design.
In response to the new restrictions, Russia warned that it could introduce protective measures, which may affect machine-building, petrochemical and automotive sectors, as well as restrictions on imports of used cars and textile products.
Russian President Vladimir Putin has stressed that Moscow will introduce measures in response to new Western sanctions only to protect Russia's interests.
