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The sharp fall in oil prices has led to an abrupt reduction in military spending in a number of countries that had increased their levels of spending in recent years. These include Angola, Chad, Ecuador, Kazakhstan, Oman, South Sudan and Venezuela. However, other oil revenue-dependent countries continued to increase spending, including Algeria, Azerbaijan, Russia and Saudi Arabia, although in the latter two cases spending is expected to fall in 2016. This is according to the report of Stockholm International Peace Research Institute (SIPRI).

Azerbaijan spent $3.0 billion in 2015, up 165 per cent compared with 2006. Despite the fall in oil prices, Azerbaijan’s military expenditure was 8.0 per cent higher in 2015 than in 2014. According to SIPRI experts, this is due to rising tensions in the Nagorno-Karabakh conflict zone. It is stressed that Azerbaijan is highly dependent on oil revenues and its preliminary 2016 budget indicates reductions in military spending.

According to the report, global military expenditure in 2015 was an estimated $1676 billion, representing an increase of about 1.0 per cent in real terms from 2014. The United States, China and Saudi Arabia have the biggest military budget.

The SIPRI Arms Transfers Database contains information, often estimates, on all international transfers of major weapons (including sales, gifts and production under licence) to states, international organizations and armed non-state groups since 1950.