European defense factories are expanding three times faster since Russia's invasion of Ukraine, driven by increased defense spending and support for Ukraine, with notable growth at ammunition and missile production sites, especially in Hungary and supported by EU programs, amid ongoing geopolitical tensions.
The Kremlin downplays the societal and economic costs of the Ukraine war while increasing military spending and investing heavily in defense industries, including drones and armored vehicles. Putin claims economic stability and plans to reduce defense spending from 2026, but evidence suggests ongoing military expansion and tactical innovations, including the use of chemical weapons against Ukraine. Ukrainian forces are making some advances, and Russia continues its offensive operations across multiple fronts, with significant activity in Belarus and ongoing missile and drone strikes.