Russian military industry, after years of growth, shows signs of serious slowdown

(Patria) - The Russian military industry, which has been one of the key sectors of the Russian economy in recent years, is now showing signs of serious slowdown.

Russian independent media report that the production of weapons, military vehicles, and equipment is in sharp decline, while at the same time there is a reduction in jobs and salaries in some key military industry companies.

According to The Moscow Times, citing statistical data from the Russian Federal State Statistics Service (Rosstat), the Russian military industry, which experienced significant growth in previous years, is now showing signs of slowdown.

In September of this year, the growth rate of production in the military-industrial complex sector decreased to 0.4 percent compared to 2.4 percent in August.

Although this is still a positive figure, it indicates a significant slowdown compared to previous years when the Russian military industry was growing rapidly to meet military needs due to the war in Ukraine.

One indicator of this slowdown is the production of "other vehicles," which includes armored vehicles, tanks, and infantry fighting vehicles. In August 2025, growth in this category was an incredible 61.2 percent, while in September it fell to six percent.

This drastic slowdown in military vehicle production indicates a decline in domestic demand, as well as difficulties in supplying key components due to imposed sanctions.

The Moscow Times reports that the industry is increasingly facing problems with logistics and supply chains, which further slows down production capacity. Although the Russian military industry remains strong, the slowed growth is a signal that certain problems have emerged.

The problem of slowdown in the military industry is not only reflected in reduced production but also in the workforce. According to an analysis published by the Meduza portal, Russian defense companies have begun to reduce their workforce and cut salaries.

This trend is noticeable in many key companies that have continuously hired new workers to meet increased demand.

One of the key reasons for the reduction in jobs may lie in the decrease of production targets. Companies producing weapons, military systems, and equipment are now facing a reduction in orders for new products, as the war in Ukraine shows signs of a prolonged stalemate.

According to Meduza, many defense companies in the last quarter of 2025 were forced to reduce their workforce and the number of newly hired workers, and at the same time, salaries in the defense sector are also decreasing.

Through this analysis, Meduza also states that there is growing dissatisfaction among employees in the Russian military industry. A smaller number of jobs and reduced salaries in key sectors can cause additional problems in maintaining the expertise and workforce needed to continue the production of weapons and military equipment.

This trend could have long-term consequences for Russia's ability to maintain its military power and develop advanced military technologies, Meduza warns.

These problems have been significantly exacerbated by the international sanctions imposed on Russia due to the start of the war in Ukraine. Sanctions have largely weakened the ability of Russian defense companies to access advanced technologies and key components for the production of modern weapons and military equipment.

Due to sanctions, many companies cannot procure the necessary semiconductors, chips, and other technologies that are crucial for the production of sophisticated guided missiles and advanced systems.

According to The Moscow Times, many Russian defense companies have been forced to seek alternative suppliers from countries like China, India, and others, but these alternatives have clearly not been able to fully replace the Western technologies that were standard in the industry.