Military & National Defence

Military and military expenditures are undeniably a significant aspect of both nations during periods of conflict(Tian, 2023), constituting a substantial portion of government spending and exerting considerable effect on the daily functioning of their economies. Defence has a crucial part in economic production and consumption; it underpins both production efficiency and the maintenance of citizens' daily living standards in societies (Stoner, 2022). Alongside the previously mentioned opacity in governmental expenditures, particularly regarding a substantial amount of Russian military funding classified as confidential, Russian prosecutors disclosed in January 2025 that officials had misappropriated $33 million intended for the enhancement of the Kursk border region's defences.

A general view shows a residential area, including newly constructed apartment blocks, in Moscow, Russia, December 5, 2024. REUTERS
2024 The Russian government has been unable to allocate the required cash for constructing border facilities due to corruption. Corruption obstructed the allocation of these funds for the construction of defence facilities. This indicates that certain military programs have been impeded due to corruption, despite Russia's significant financial investment in the battle. Corruption within the military-industrial complex was further exposed in April 2024 when Russia's deputy defence minister was apprehended for receiving bribes. This indicates that, besides failing to enhance military efficacy, the substantial rise in defence expenditure has significantly exacerbated corruption.
In January 2025, a dispute arose between Maryna Bezrukova, the head of the Defence Procurement Agency, and Ukrainian Defence Minister Rustem Umerov. Umerov dismissed Bezrukova after alleging her inefficiency in procuring weaponry. Western diplomats, anti-corruption organisations, and Ukrainian legislators are concerned by the move, apprehensive that internal discord inside the Ukrainian administration may affect Western support for Ukraine. As previously stated, Western allies continue to exert pressure on the Ukrainian government to enhance transparency on its political actions while simultaneously providing original documents.

The Ukrainian government is facing pressure from the G7 to ensure transparency in arms procurement or risk jeopardising future assistance. In late 2024, the Security Service of Ukraine (SBU) disclosed that the military was involved in corrupt practices related to a $40 million arms procurement operation. The implicated officials profited from exaggerated prices and fraudulent contracts. This indicates that substantial deficiencies persist in Ukraine's wartime ammunition procurement procedure, potentially affecting the supply of armaments on the battlefield.
While defence corruption is a notable concern in both Russia and Ukraine, the fundamental causes and ramifications of these concerns vary considerably. Corruption in Russia is institutional and vertically integrated; it is embedded throughout the military-industrial complex and the state budget, rendering it not merely a means for individual gain but an essential element of governmental functioning. Corrupt finances are difficult to trace and may be utilised to fund illegal wars or maintain the allegiance of political elites, given that 41% of the military budget remains classified. This entrenched corruption undermines the military's operational effectiveness and adversely impacts Russia's wartime resource allocation. Corruption remains pervasive in sectors directly associated with national security, exemplified by the misappropriation of border defence funds.
Conversely, although widespread, corruption in Ukraine is more transparent, largely due to external pressure from Western assistance and international oversight. Intra-governmental factional disputes, such as the struggle between Umerov and the Director of Procurement, exemplify the broader political corruption in Ukraine (Chin, 2023). The conflicts of power within the government are the root of this corruption, which is not fully institutionalised. The Ukrainian administration confronts a dilemma in addressing corruption: an excessively stringent approach may threaten domestic stability, while an inadequate response could undermine Western confidence in Ukraine.
References
Chin, W. (2023) ‘Testing western military thinking about the future of war: Russia’s war in Ukraine’, War, Technology and the State, pp. 115–137. doi:10.1332/policypress/9781529213409.003.0006.
Stoner, K. (2022) ‘The war in Ukraine: How putin’s war in Ukraine has ruined Russia’, Journal of Democracy, 33(3), pp. 38–44. doi:10.1353/jod.2022.0038.
Tian, N. et al. (2023) ‘Developments in military expenditure and the effects of the war in Ukraine’, Defence and Peace Economics, 34(5), pp. 547–562. doi:10.1080/10242694.2023.2221877.