STOCKHOLM / Reuters – Russia and Europe saw a surge in military spending during the period leading up to Moscow’s attack on Ukraine. However, the effects of economic growth were still subdued according to data released Monday by Stockholm International Peace Research Institute.

Russia called the war in Ukraine a “special military operations”. It has led to Europe having to quickly rethink its defence strategy and has seen a number of countries promise significant increases in their military budgets.

This has opened the door to a possible expansion of NATO’s military alliance, which could include Sweden and Finland.

The most significant effect of an increase in military budgets may be evident in the years ahead, although spending already rose in 2021 due to increased tensions that arose in the wake of Russia’s invasion.

The influential defense think tank reported that global military expenditures topped two trillion dollars last year. They reached $2,113 billion in 2018, up 0.7% over 2020.

SIPRI reported that Russia increased its military expenditure by 2.9% to $65.9billion in 2021 as it expanded its force along the Ukrainian border. This was Russia’s third consecutive year with an increase in military expenditures, reaching 4.1% GDP in 2021.

Lucie Beraud Sudreau (Director of SIPRI’s Military Expenditure and Arms Production Programme) stated in a statement that Russia was able to increase its military spending by increasing oil and gas revenues.

“Russian military expenditure had been in decline between 2016 and 2019 as a result of low energy prices combined with sanctions in response to Russia’s annexation of Crimea in 2014.”

Russia remains fifth on the list of countries with the highest military spending. This is behind China, India, the United States and Britain.

SIPRI reports that Ukraine spent less than 1/10th of Russia’s annual budget on its military expenditures in 2021 at $5.9Billion.

Europe’s total military expenditures were $418 billion. They have been increasing rapidly since Russia’s 2014 annexe of Crimea. According to SIPRI, the military budgets rose by 3.0% in 2020 and were 19% more than 2012’s.

This number is expected to rise sharply as countries such as Germany, Belgium and Denmark fulfill promises to raise spending to 2% gross domestic product in the next years.

Russia is a top concern for countries that have high-tech fighters, missile defense systems and drones.