Despite Militarizing the Economy, Russia Cuts Recruitment and Salaries in the Military-Industrial Sector — Russia Info-Space Monitoring #36

26 September 2025
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Despite Militarizing the Economy, Russia Cuts Recruitment and Salaries in the Military-Industrial Sector — Russia Info-Space Monitoring #36

In the summer of 2025, the number of job openings in Russia’s defense industry fell to 34,500, compared to 52,000 in 2024. Average salaries also dropped by 10%. Analysts from the Conflict Intelligence Team believe production peaked in 2024: now most plants are repairing equipment and retaining staff, while only enterprises in the drone and missile sectors are attracting new investment.

Over three years of war, Russia’s economy has entered a state of militarization — military spending has risen to 8% of GDP, with the defense sector crowding out civilian industries. According to Ukraine’s Foreign Intelligence Service, the Kremlin cannot cut these expenditures without triggering an economic collapse. The budget is already strained: in the first half of 2025, revenues fell by 17% due to oil and gas being sold at heavy discounts. The Finance Ministry is forced to raise taxes and introduce new levies, further pressuring businesses. Meanwhile, sanctions and lack of access to technology are crippling civilian production.

The “Geran-3” drones remain dependent on Chinese Telefly JT80/90 engines. Russia chose them for their low cost, availability, and production speed: a single JT90 costs €12,000–14,000, making mass drone deployment more viable than launching domestic serial production.

Asia’s richest businessman, billionaire Mukesh Ambani, has become the largest buyer of Russian oil. His holding Reliance Industries, which owns the world’s largest oil refining complex, took full advantage of discounts after the Western embargo. According to India’s government, since the start of the full-scale war, Reliance has purchased $33 billion worth of Russian oil — about 8% of all Russian exports during this time.

More from Russia’s information space — in ESCU Monitoring #36 ⬇️

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