Russian intelligence agencies are putting “serious effort” into stealing Western technology and defense secrets as the Kremlin spends unprecedented funds on the war in Ukraine.
Three European officials told the Associated Press on Saturday that Kremlin agents are building shell companies and deploying spies and hackers to gather information that could be used to attack European infrastructure.
“They really know what they need, Christoffer Wedelin, deputy head of operations at the Swedish Security Service, told the AP. “All of the security and intelligence services in Russia are helping out on the state’s efforts to get this.”
Wedlin also told the AP that international companies should be aware that, because of Russia’s highly concentrated efforts, they could unknowingly get caught up in the Kremlin’s war plans.
He emphasized that the Kremlin cares less about getting caught red-handed when Russian spies launch cyberattacks.
“They’re no longer caring as much about potential attribution after their activities, so they are taking greater risks to achieve their goals,” he said.
Wedelin specifically referenced an attack last year on a Swedish power plant that was a metaphorical “switch” in how Russia operated. Before the cyberattack, Swedish intelligence had mostly observed intelligence gathering or cybercriminal activity from Russian actions.
Russia is trying to steal European defense tech, sources tell ‘AP’
The AP report mentioned that Russia is specifically attempting to target Sweden’s defense industry and research in the country’s most advanced weapons, namely the Gripen fighter jet.
Kremlin agents are also reportedly working to obtain camera and laser system technology originally developed for civilian purposes, but that could be used in defense systems.
“We’re talking about space technology, quantum … arctic technology, marine technology,” Juha Martelius, the director of Finland’s Security and Intelligence Service, told the AP. He added that Russia is urgently seeking space technology but did not comment further.
Usually, space technologies are used for satellite imaging, communications, and navigation.
Russia set to overspend on Ukraine war by $28 billion
This comes as Russia’s economy enters the red line as the war in Ukraine enters its fifth year.
The Financial Times reported last week that Russia had set a government budget deficit of 3.8 trillion rubles for 2026. By April, Moscow’s budget was 5.9 trillion roubles.
The FT report highlighted that this is the largest Russian budget deficit since the start of the Ukraine-Russia War.
In a letter to the Kremlin seen by the FT, Finance Minister Anton Siluanov estimated that Russia was set to overspend its budget by as much as 2 trillion rubles, roughly $28 billion, and could spend as much as 4 trillion rubles in a “negative scenario.”
While the war in Iran has helped Russia’s economic situation, Siluanov recently told the Russian newspaper Kommersant that April’s surplus energy export revenue was virtually offset by weak March revenue.
A report from Germany’s foreign intelligence agency found that in 2025, Russia’s military spending accounted for 10% of its total economic output, though it made up half of the country’s total budget.
The German intelligence report noted that Russia’s interpretation of what constitutes defense spending is much narrower than NATO’s definition, but the Kremlin has been known to distort figures dramatically. Russia currently has the third-largest defense budget in the world.
Indeed, Estonia’s Foreign Intelligence Service Chief, Kaupo Rosin, told the AP that if Western sanctions continue, Moscow could find itself in a dire economic crisis by the year’s end.
He further suggested that the aggressive measures Russia is taking to procure Western technology and defense secrets may be due to the state of its economy.
Impasses in peace talks, stagnation on the front lines, and growing economic redlines have some Russian officials wondering “what this is all for,” Rosin told the AP.
