3% Growth in Manufacturing Sector, Defense Industry Fulfills State Orders: Russian Industry Shows Strong Performance in 2025

Moscow, Russia: President Vladimir Putin held a working meeting with First Deputy Prime Minister Denis Manturov on the 2025 industrial performance indicators. According to the data presented in the meeting, despite global challenges, Russian industry has made significant progress this year as well.

Key Points:
3% Growth in Manufacturing Sector: Growth in the manufacturing sector remained positive in 2025. Russia has concluded this year with approximately 3% growth, the final figures for which will be released in February following the publication of official statistics. Performance varied by industry: the pharmaceutical, medical equipment, and electronics sectors saw growth exceeding 15%, while the chemical sector, including mineral fertilizers, registered growth of more than 6%.

23% Growth in Investment: Despite challenging economic conditions, investment activity in the manufacturing sector remained strong. During the first three quarters of 2025, investment in this sector increased by 23%, reaching nearly 5 trillion rubles. This growth was driven by coordinated government and business efforts under national projects, through special investment contracts, concessional loans from the Industrial Development Fund, research and development support, and interest subsidies.

18% Growth in Exports: Exports of competitive Russian goods continued to expand. In the first ten months of 2025, exports increased by 18%. The share of supplies to friendly nations reached 80%, compared to around 60% before 2022. This demonstrates the successful adaptation of enterprises to new markets and the reorientation of trade flows.

Defense Industry Fulfills State Orders: Defense industry enterprises have fulfilled all state defense orders. Production volumes of weapons and military equipment, tailored to the needs of the special military operation, increased substantially, in some areas by several fold. Labor productivity at defense industry enterprises has continued to rise due to large-scale technical modernization under state programs and substantial federal budget investments over the past three years.

Frontline Testing of Military Equipment: In 2025, more than 1,000 new and advanced types of military equipment underwent frontline testing. Interest in Russian military products in foreign markets remains high, particularly in air defense systems, aircraft, multiple launch rocket systems, unmanned platforms, and electronic warfare technologies. The export order portfolio reached a record $70 billion, exceeding the pre-2022 peak of $55 billion.

Diversification of Defense Industry Output: Civilian production at defense industry enterprises has increased by an annual average of 10% over the past three years. By the end of 2025, civilian output accounted for over 30% of total production, especially in rail transport, construction and road machinery, medical equipment, pharmaceuticals, consumer electronics, and telecommunications equipment.

Positive Momentum in Rocket and Space Industry: In 2025, revenues of space industry enterprises grew by 10%, accompanied by increases in average wages and labor productivity. This year saw 17 space launches. The national satellite constellation expanded from 288 to 300 spacecraft, while 5 billion rubles have been allocated in the federal budget to launch a new Earth remote sensing services framework starting in 2026.