German intelligence says Russia's hidden military spending far above official figures

By Ayhan Simsek

BERLIN (AA) - Russia has concealed the true scale of its military spending, with defense expenditures far exceeding official figures, Germany’s intelligence agency BND claimed on Wednesday.

The BND estimated that Russia's military spending has increased significantly since the war with Ukraine began – from €106 billion ($125 billion) in 2022 to roughly €245 billion ($290 billion) in 2025.

In 2023, Russia officially reported €82 billion ($97 billion) in defense spending. The BND calculated the real figure at €136 billion ($161 billion) after adding hidden costs – 66% higher than the public number.

In 2024, the official defense budget was listed as €140 billion ($165 billion), including €42 billion in open items and €98 billion in classified spending. The agency put the actual total at €202 billion ($239 billion).

For 2025, using data through the third quarter and fourth-quarter projections, the BND estimated total military spending at roughly €245 billion ($290 billion). That amount equals about half of Russia’s entire state budget and around 10% of the country’s gross domestic product, the agency said.

The assessment matches previous BND warnings that Russia is preparing for a possible conflict with NATO and could be capable of attacking a member state by the end of the decade.