In order to protect the sovereignty and ensure security of European countries, from external aggression and deter any Russian military adventure is fuelling the current expansion of NATO. The Russian invasion of Crimea has damaged its relationship with most European Countries. The ramifications of Russian military aggression in Crimea and its continued role in destabilizing Ukraine has re-ignited fears among NATO-European countries, as it demonstrates Russia’s willingness to employ brute military force to gain favorable outcomes.

NATO countries by and large also remain deeply skeptical of the ongoing Russian rearmament programs and are threatened by the ongoing Russian military build-up in the arctic. Given the fact that NATO countries such as Norway, Canada and Denmark continue to have extensive national frontiers abounding the Arctic region, the Russian military build-up in the Arctic directly poses a challenge to these countries. 

This report analyzes factors that influence NATO member states’ defense spending, their threat perception, defense requirements, procurement projects, technology development domains, inter organization relationships and its future role in global arena. 

Key Highlights:

• NATO defense spending is primarily fuelled by need to counter Russian military capabilities and contain the latter’s influence within Europe.
  
• With Russia increasingly taking a hostile stand, NATO member states are expected to increase their defense spending over the coming years and invest in military hardware to deter Russia from further aggression.