Amid Russian economy warnings, Lavrov says NATO's increased defense spending will lead to 'collapse' of alliance

NATO's increased defense spending will lead to the "collapse" of the alliance, Russian Foreign Minister Sergei Lavrov said on June 30, despite Russian officials recently warning that Moscow's own military expenditure is driving the country towards recession.

Lavrov's comments come after NATO leaders last week approved a new defense spending benchmark, committing members to spend at least 5% of GDP on defense and security-related expenditures by 2035, a goal long pushed by the U.S. and endorsed by NATO Secretary General Mark Rutte.

The week previously, and in a rare public sign that all is not well in Russia, two high-ranking Moscow officials issued separate warnings about the state of the country's economy.

Russian Central Bank Governor Elvira Nabiullina and Economy Minister Maxim Reshetnikov both highlighted that amid the Kremlin's full-scale war against Ukraine, the tools Moscow once relied on to maintain wartime growth are nearly exhausted.

Polish Foreign Minister Radoslaw Sikorski on June 26 said an arms race between Russia and NATO could lead to Russian President Vladimir Putin's downfall.

"Since (Polish Foreign Minister Radoslaw Sikorski) is such a predictor, he probably foresees that a catastrophic increase in the budget of NATO countries, according to my estimates, will also lead to the collapse of this organization," Lavrov reportedly said.

Putin last week announced that Moscow plans to cut its military expenditure beginning next year, in a rebuke of NATO members' plans to increase defense spending to 5% of GDP.

"We are planning to reduce defence spending. For us, next year and the year after, over the next three-year period, we are planning for this," Putin said, though he did not provide concrete details.

"Europe is thinking about how to increase its spending, on the contrary. So, who is preparing for some kind of aggressive actions? Us or them?"

Western officials and analysts point to Russia's surging military expenditures amid its ongoing full-scale invasion of Ukraine. In 2024, Russia's defense budget reportedly rose 42% in real terms, reaching $462 billion, surpassing the combined spending of all European nations, according to the International Institute for Strategic Studies.

NATO allies have cited Russia's military buildup, sabotage campaigns, and continued aggression against Ukraine as reasons to accelerate defense investments. Rutte warned that Russia could rebuild its military capacity to threaten NATO territory within five years, urging members to act with urgency.