Azerbaijan’s military expenditures are twice as much as Armenia’s
Azerbaijan continues to accuse Armenia of militarization; however, at the same time, the authorities of the neighboring country remain focused on their armed forces and continue to arm themselves more than in previous years.
Azerbaijan’s military expenditures, unlike Armenia’s, rose sharply after 2005. That year marks the last point where the military expenditures of the two countries were somewhat equal. According to World Bank data, at that time, Armenia’s and Azerbaijan’s military spending amounted to about $200-250 million. However, just 6 years later, Azerbaijan’s military expenditures reached $3 billion, while Armenia’s remained at $300 million.
Over the past 10 years, military expenditures in both countries have continued to grow. Only the rates are different. Following the Second Nagorno-Karabakh War, Azerbaijan increased its military budget by around 20%, raising it from $2.2 billion to $2.6 billion annually for 2021 and 2022.
Armenia significantly increased its military spending after the 2018 revolution, reaching around 5% of its GDP, thereby surpassing Azerbaijan in this ratio.
In 2021, Armenia allocated approximately $600 million from the state budget to the Ministry of Defense, and in 2022, military spending increased by more than 10%, reaching $750 million. In 2021, Armenia’s military spending made up 4.4% of its GDP, compared to Azerbaijan’s 5.3%.
Armenia’s military expenditures and its acquired weaponry over different years are regularly discussed in the Armenian media and among political figures. These discussions particularly intensified after the 44-day war, becoming a subject of various manipulations and speculations.
According to the 2022 Global Militarization Index (which compares a country’s military expenditures to its GDP and healthcare spending), Armenia ranks third globally in terms of militarization, while Azerbaijan is only ninth.
Armenia and Azerbaijan have different military partners. While Armenia’s primary partner used to be Russia and Azerbaijan’s was Turkey, both countries have now diversified their arms suppliers. Armenia has begun purchasing weapons from India and France, while Azerbaijan procures arms from Israel, Ukraine, and other countries.
The Indian IRWA.org reported this October that Armenia’s Armed Forces have completed testing the Indian ATAGS howitzers. Which passed all possible trials. Additionally, modifications were made to meet Armenian military requirements. Following the tests, Armenia is set to acquire another 84 ATAGS howitzers.
Hovhannes Vardanyan, Head of the Aviation Directorate of the Armenian Armed Forces, mentioned during the International Defense Aviation Exhibition 2024 exercises that they are considering upgrading Armenia’s Su-30 fighter jets.
According to Vardanyan, at the International Defense Aviation Exhibition 2024 held at the Jodhpur airbase, he discussed possible areas of cooperation with General Anil Chauhan, Chief of India’s Defense Staff. Notably, Armenia is considered one of India’s top three buyers in the defense industry.
Apart from India, Armenia has signed several cooperation agreements with France and French industrial companies. For instance, Armenia is set to receive 36 “Caesar” artillery systems over the next 15 months.
Under a contract signed on October 23, 2023, Paris committed to providing Yerevan with three Mistral missiles and GM200 radars. France has also transferred “Bastion” armored vehicles to Yerevan, five of which have already been showcased during military exercises.
On June 17, 2024, the French defense industrial company KNDS and Armenia’s Ministry of Defense signed a military-technical cooperation agreement.
Notably, at Suren Papikyan’s invitation, France’s Minister of Armed Forces visited Armenia for the first time this year. Recently, the letter also traveled to France.
From the numbers and purchases, it is evident that the neighboring countries are “signing a peace agreement” while acquiring massive amounts of military equipment.