'Kalashnikov economy' Russia's war machine shows no signs of slowing

As Ukraine has scrambled to source ammunition, arms and equipment for its defence, Russia has presided over a massive increase in industrial production over the past two years that has outstripped what many western defence planners expected when Vladimir Putin launched his invasion.

- Andrew Roth

Total defence spending has risen to an estimated 7.5% of Russia's GDP, supply chains have been redesigned to secure many key inputs and evade sanctions, and factories producing ammunition, vehicles and equipment are running round the clock, often on mandatory 12-hour shifts with double overtime, in order to sustain the Russian war machine for the foreseeable future. The transformation has put defence at the centre of Russia's economy.

Putin claimed this month that 520,000 new jobs had been created in the defence sector, which now employs an estimated 3.5 million Russians, or 2.5% of the population.

Machinists and welders in Russian factories producing war equipment are now making more money than many white-collar managers and lawyers, according to a Moscow Times analysis of Russian labour data in November.