Russia's Armata tank programme.
Russia's military is currently undergoing a 700 billion dollar rearmament programme, with Moscow aiming to supply the military with 70% modern equipment by 2020. The reform plan is looking to upgrade Russia's armoured formations with a new family of vehicles collectively called Armata. The Armata tank variant will be far superior to any tank operating in Russia's neighbours as well as many NATO armies. However, it is costly and the Defence Ministry is actively trying to force down the price.
Defence spending has been largely protected from 10% spending cuts but budgetary pressures will remain.
It will take time to bring defence and procurement spending in many NATO members up from current low levels below 2% of GDP.
The Ukraine crisis will force Russia's defence industry to produce weaponry domestically with less reliance on foreign supplies.
