RUSSIAN ECONOMIC GROWTH RESUMES: But not enough to stop budget cuts.

That means large cuts in government spending, including a defense budget that is now 25 percent smaller…That also means the replacement of worn out or obsolete Cold War era equipment will take a lot longer and upgrades to or expansion of the military will be restricted. The government has already announced sharp reductions in orders for new armored vehicles, ships and aircraft. Instead thousands of tanks and aircraft will undergo extensive (and much cheaper) upgrades.

Good news for Russia’s neighbors.