For the Russian defense industry, the outgoing 2017 was a fairly fruitful year, which was not accompanied by scandals or delays in the delivery of military products. The Russian military-industrial complex (DIC) is loaded with orders for many years, both as part of the implementation of state defense orders and the implementation of export contracts. In particular, on November 21, 2017, the head of the Federation Council Committee on Defense and Security, Viktor Bondarev, announced the volume of the agreed state arms program (GAP) for 2018-2025: 19 trillion rubles will be allocated for its implementation.
Supply of weapons and military equipment as part of the state defense order
According to Russian Deputy Prime Minister Dmitry Rogozin, the state defense order in 2017 will be completed by 97-98%. On the Rossiya 24 TV channel on Wednesday, December 27, he noted that in terms of numbers, the result will be no worse than the 2016 figures. Earlier in February 2017, Deputy Minister of Defense of Russia Yuri Borisov, in an interview with Rossiyskaya Gazeta, said that more than 1.4 trillion rubles would be allocated to fulfill the state defense order for 2017. According to him, the bulk of the funds, more than 65%, were planned to be used for serial purchases of modern types of weapons and military equipment.
We can already say that the large-scale state weapons program until 2020 has seriously stimulated the development of the Russian defense-industrial complex. Over the past 5 years, the share of modern equipment in the Armed Forces of the Russian Federation has increased 4 times, and the pace of military construction has increased 15 times. On December 22, 2017, Russian Defense Minister Sergei Shoigu reported to the country's President Vladimir Putin as part of the final expanded board of the military department, which was held at the Strategic Missile Forces Academy. Currently, a systematic process of rearmament of the Russian army with new ones is underway; in 2020, the share of such weapons in the troops should be 70%. For example, in 2012 the share of modern weapons and military equipment in the troops was only 16%, and at the end of 2017 it was about 60%.
As part of the final expanded board of the military department, immediate plans for the rearmament of troops were announced. Thus, the share of modern weapons in the nuclear triad of the Russian Federation has already reached 79%, and by 2021, Russian ground-based nuclear forces should be equipped with new weapons at a level of up to 90%. We are talking, among other things, about missile systems that can confidently overcome even promising missile defense systems. It is planned that in 2018 the share of modern equipment in the Russian army will reach 82% in the Strategic Nuclear Forces, 46% in the Ground Forces, 74% in the Aerospace Forces, and 55% in the Navy.
Earlier, on December 22, he spoke about the main supplies of weapons and equipment to the troops based on the results of 2017. At the end of the past year, enterprises of the Russian defense industry were transferred to formations and military units Western Military District (ZVO) more 2000 new and modernized weapons and military equipment (WME). Troops Eastern Military District (VVO) received more than 1100 units of weapons and military equipment. In particular, the missile units are being re-equipped with new Iskander-M and Bastion missile systems; as a result of these actions, the combat power of the district has increased by more than 10%. To military units and formations Southern Military District (SMD) since the beginning of the year more than 1700 units of arms and military equipment, this made it possible to increase the share of modern weapons and equipment in the district to 63%. Thanks to the arrival of new military equipment, combat power Central Military District (CMD) over the past three years has grown by almost a quarter; in 2017, the district’s troops received about 1200 units of weapons and military equipment.
According to the Russian Defense Minister, more than 50 ships are being built for the country's Navy in 2017. The work is being carried out within the framework of 35 government contracts, under which 9 lead and 44 serial warships and support vessels are being built. In total, in 2017, the Navy included 10 warships and combat boats, as well as 13 support vessels and 4 coastal missile systems “Bal” and “Bastion”. The composition of naval aviation was replenished with 15 modern aircraft and helicopters. According to the minister, the Ground Forces received 2,055 new and modernized weapons, with which 3 formations and 11 military units were re-equipped, and 199 drones were also received. A special purpose division and a military transport division were formed as part of the Russian Aerospace Forces. 191 new aircraft and helicopters were received, as well as 143 air defense and missile defense weapons. In total, the Russian military-industrial complex produced 139 combat aircraft and 214 helicopters in 2017, Deputy Prime Minister Dmitry Rogozin spoke about this on the Rossiya 24 TV channel.
For the future of the defense industry, it is important to increase the output of civilian products
For now, Russian defense industry enterprises can count on state defense orders, but funds for upgrading the armed forces will not be allocated indefinitely. The more the armed forces are equipped with new military equipment, the less the army will order from the domestic defense industry. The economic and political situation in which Russia finds itself today also affects the financing of government procurement of weapons. As part of the discussion of the state weapons program for 2018-2025, which has been ongoing since the end of 2016, the initial requests of the Ministry of Defense were reduced several times. The initial requests of the military department amounted to about 30 trillion rubles, but were then reduced by the government to 22 trillion rubles, and according to the latest data - to 19 trillion rubles.
In the near future, the Russian president sees spending on the country's defense in the range of 2.7-2.8% of GDP (in 2016 the figure was 4.7%). At the same time, it is planned to solve all previously set tasks for the modernization of the Armed Forces and the military-industrial complex, reports the RT website in Russian. The Russian Ministry of Defense and the defense industry have two strategic goals. The first is to bring the share of modern military equipment in the Russian Armed Forces to 70% by 2020. The second is to increase the share of civilian products in the Russian defense industry to 50% by 2030 (in 2015 this figure was only 16%). It is obvious that the second strategic goal directly follows from the first. The higher the level of equipment of the Russian army with new military equipment, the less products the military will order from Russian enterprises.
According to the forecasts of the Ministry of Industry and Trade of Russia, by 2020 the growth in the output of civilian products by defense industry enterprises is planned to increase by 1.3 times. Most likely, such a significant jump in production is planned to be achieved through the mass production of new passenger aircraft of various classes. The Russian government is relying on the production of passenger aircraft MS-21, Il-114-300, Il-112V, Tu-334, Tu-214 and Tu-204. It is expected that by 2025 the number of passenger aircraft produced in the country will increase 3.5 times - from 30 to 110 aircraft per year. In the future, the basis for the financial stability of the defense sector of the Russian economy should be not only long-term contracts concluded within the framework of the state arms procurement program. At meetings devoted to defense-industrial complex issues, Vladimir Putin has repeatedly said that industrialists should look for new markets; this is also relevant today for Russian arms exports.
It is worth noting that a partial reorientation of the defense complex to the production of civilian products is already underway in the regions, in particular in Udmurtia, which is a recognized forge of Russian weapons. As Alexander Svinin, First Deputy Prime Minister of the Government of the Udmurt Republic, told reporters on Wednesday, December 27, at the end of 2017, the republic’s defense enterprises increased the output of civilian products by 10%. According to the official, bringing civilian defense industry products to the market is an important task for the government of the republic in the context of declining state defense orders. The Deputy Prime Minister noted that in 2018, meetings with representatives of large Russian companies will be held every two weeks, this work should help in solving the problems of finding new markets for the products of defense enterprises. In December 2017, one meeting already took place, during which the head of Udmurtia and the heads of five defense enterprises of the republic, as well as the Chepetsk Mechanical Plant, met with the leadership of the United Aircraft Corporation (UAC). The meeting discussed the industrial potential of defense enterprises, which can be used in the aircraft industry.
Export of weapons and military equipment
There are no final figures on Russian arms exports for 2017 yet. But already in March of this year, within the framework of the 14th international naval and aerospace exhibition LIMA 2017, Viktor Kladov, director for international cooperation and regional policy of the Rostec state corporation, as well as the head of the joint delegation of the corporation and Rosoboronexport JSC, spoke to journalists about that the export of Russian arms at the end of 2017 will exceed the figures for 2016. At the same time, in 2016, Russia exported arms and military equipment worth $15.3 billion.
Export supplies are a strong point of the Russian defense industry and the entire industry of the country. Russia's position on the global arms market is traditionally strong. Our country ranks second in the world in arms exports after the United States. The arms and military equipment market today looks like this: 33% comes from the United States, 23% from Russia, and China is in third place with a serious lag - 6.2%. At the same time, according to experts, by 2020 the capacity of the global arms market could grow to $120 billion. The trend in the international arms market is to increase the share of purchases of military aircraft, including helicopters, and the demand for air defense systems and marine equipment is also growing. At the same time, by 2025, according to military experts, in the structure of arms purchases by countries around the world, aircraft will already account for 55%, followed by marine equipment with a serious lag - about 13%.
As the publication writes, Rosoboronexport’s order portfolio currently exceeds $50 billion (with the execution period of concluded contracts from 3 to 7 years). Russia's top five customers are as follows: Algeria (28%), India (17%), China (11%), Egypt (9%), Iraq (6%). At the same time, approximately half of the supplied products already go to aviation, another quarter to various air defense systems. At the same time, experts note increased competition for Russian weapons from China, India, South Korea, Brazil and even Belarus.
If we talk about the most important export contracts of 2017, they include the signing on August 10, 2017 of a Russian-Indonesian agreement on the terms of Indonesia’s acquisition of 11 Russian-made Su-35 multirole fighters. According to the agreement signed by the parties, the cost of acquiring 11 Russian fighter jets will be $1.14 billion, of which half ($570 million) Indonesia is going to cover with supplies of its own products, including palm oil, coffee, cocoa, tea, petroleum products, etc. . This does not mean at all that the goods will physically arrive in Russia; as a rule, in such cases we are talking about exchange goods that can be easily sold on the markets.
The second very important contract for Russia in the defense sector concerns Turkey and its acquisition of the S-400 Triumph anti-aircraft missile system. This deal became the main news story for a long time. At the end of December 2017, the head of the Rostec state corporation, Sergei Chemezov, revealed some details of this transaction in an interview with journalists from the newspaper "". According to him, Russia's benefit from supplying Turkey with the S-400 anti-aircraft missile system is that it is the first NATO country to buy our latest air defense system. Chemezov noted that Turkey bought 4 S-400 divisions for a total of $2.5 billion. According to Chemezov, the Turkish and Russian Ministries of Finance have already completed negotiations, all that remains is to approve the final documents. “I can only say that Turkey pays 45% of the total contract amount to Russia as an advance, and the remaining 55% consists of Russian loan funds. We plan to begin the first deliveries under this contract in March 2020,” said Sergei Chemezov about the terms of the deal.
Also in December 2017, the Stockholm International Peace Research Institute (SIPRI) published a ranking of the Top 100 largest military-industrial companies in the world by sales volume in 2016 (both in domestic and foreign markets). The total volume of arms sales of Russian companies included in this rating increased by 3.8%; in 2016, they sold arms worth $26.6 billion. The top twenty largest companies included: United Aircraft Corporation (UAC) - 13th place with an estimated sales volume of $5.16 billion and United Shipbuilding Corporation (USC) - 19th place with an estimated sales volume of $4.03 billion. On the 24th line of this rating is Concern VKO Almaz-Antey with an estimated sales volume of $3.43 billion.
Pros and cons for Russian arms exports based on the results of 2017
2017 brought both positive and negative aspects for Russian arms and military equipment export prospects. The positive aspects include the successes of the Russian army demonstrated in Syria. The fighting in Syria is a very strong advertisement for Russian and even Soviet weapons. In the war in Syria, even obsolete Soviet-made weapons and military equipment performed well, once again confirming their high combat qualities, as well as an excellent level of reliability.
In total, during the period from 2015 to 2017, during the fighting in Syria, the Armed Forces of the Russian Federation checked and tested in combat conditions more than 200 types of weapons and military equipment. Basically, all tested weapons confirmed the tactical and technical characteristics declared by the manufacturers. Of course, the operation in Syria became a real benefit for modern Russian aviation equipment and combat helicopters. For example, many countries are seriously considering the possibility of purchasing the modern Russian Su-34 front-line bomber. However, different types of weapons performed well in Syria. For example, in Syria, a modernized high-precision 152-mm projectile “Krasnopol” was used; video recordings of the use of these projectiles can be found on the Internet today; this high-precision ammunition may also be of interest to potential customers.
For its development, the Russian military-industrial complex must remain competitive and look for new export markets for its products. In the context of declining government defense orders, this is especially important and relevant. Of course, Russia will not lose its second place as an arms exporter in the world in the foreseeable future, but the struggle for sales volumes in monetary terms will only increase. New “second-tier” players are entering the market, which at the same time have a well-developed high-tech industry. For example, the published SIPRI rating especially highlights the growth in the performance of military-industrial companies in South Korea, which in 2016 sold military products worth $8.4 billion (an increase of 20.6%). Russian enterprises must be prepared for the fact that competition on the international arms market will only increase.
A minus sign for Russian arms exports, and therefore for companies in the domestic defense-industrial complex, can be considered, which appeared at the end of October 2017. Under pressure from Congress, the administration of US President Donald Trump has named a list of 39 Russian defense industry companies and intelligence agencies, cooperation with which could lead to company and government sanctions around the globe. At the same time, how seriously the American leadership will approach the implementation of the new sanctions package can only be seen in the future. Experts note that the Trump government has the opportunity to both deal a truly significant blow to Russian arms exports and sabotage the introduction of strict restrictive measures.
Almost half of the newly published sanctions list were made up of enterprises of the Rostec state corporation, which is a monopoly agent for the export of Russian weapons to the international market. As Atlantic Council experts in the field of economic sanctions note: “Putting new Russian defense-industrial companies on the sanctions list will increase the potential risk for any state and any company that does business with them, forcing them to make a choice: either do business with the United States, or with these Russian structures.” Washington may use new sanctions as a possible blow to the main competitor in the international arms market. With the help of new sanctions, US authorities will be able to put pressure on third countries, their governments and companies. Therefore, the Russian military-industrial complex will have to work taking into account the possibility of these risks and increased sanctions pressure, which will not disappear anywhere in the foreseeable future.
As Ruslan Pukhov, a well-known expert in the field of weapons in Russia, director of the Center for Analysis of Strategies and Technologies, noted in an interview with journalists, Russia today is not even among the 10 leading countries in the world in terms of economics and GDP, but the country ranks second in arms trade. It is already very difficult to further increase sales volumes: “their” sales markets are saturated (“Russia has already armed half the world with cornets, “dryers” were even delivered to Uganda), sanctions are also having an impact. Therefore, we need to focus on maintaining our second place - and the task is very difficult, new approaches are needed. “I see two options. The first of them is the struggle for non-traditional budgets: not the defense ministries of potential customer states, as is mostly the case today, but the police, the Ministry of Emergency Situations, the border service and other departments where there may still be reserves for the products of the Russian defense industry. The second is the struggle for non-traditional sales markets, that is, for states where Russia has practically not worked on military equipment. One of these states is Colombia, which has always been considered an American “garden,” noted Ruslan Pukhov. It is worth noting that at the beginning of December 2017, Rosoboronexport took part in the Expodefensa 2017 exhibition in the capital of Colombia for the first time. This exhibition fits into the strategy of searching for new markets for Russian military products.
Photos used from the site rostec.ru
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According to a SIPRI report, Russian military spending exceeded $69 billion, despite falling oil prices
Anti-aircraft missile system S-400 "Triumph"
Moscow. April 24. website - Russia is among the three countries with the largest military expenditures. This follows from the annual report of the Stockholm International Peace Research Institute (SIPRI).
“Russia increased its spending by 5.9% to $69.2 billion, placing it third on the list of countries with the highest military spending,” the report said.
Russia took third place in the world in military spending after the United States and China, however, significantly behind them, notes the British broadcasting corporation BBC.
China's military spending increased by 5.4% and amounted to $215 billion in 2016, and the leaders of the US list increased spending by 1.7% to $611 billion. Global military spending in 2016 amounted to $1,686 billion, or 2.2% of global GDP.
In 2016, 55% of the Russian military budget went to finance the state arms program, the report says.
The increase in defense spending in Russia, as stated in the SIPRI report, in 2016 came against the backdrop of a sharp decline in such spending among oil-producing countries due to falling oil prices.
Defense spending in Western Europe is rising for the second year in a row - last year it increased by 2.6%. The leader in this race was Italy, whose spending increased by 11%. The same picture is observed in Central European countries, which increased spending by 2.4% last year, notes the BBC.
In February, Russian Deputy Defense Minister Yuri Borisov announced that more than 1.4 trillion rubles would be spent in 2017 on the purchase of weapons and military equipment.
“Taking into account the country’s financial and economic capabilities, more than 1.4 trillion rubles have been allocated for the implementation of defense order tasks in terms of the purchase of weapons, military and special equipment,” Borisov said in an interview with Rossiyskaya Gazeta.
As Interfax reported, in May the Ministry of Defense will send a draft state weapons program for 2018-2025 to the board of the Military-Industrial Commission. The program should be formed by July 1 and finally approved at the end of 2017, Russian Deputy Prime Minister Dmitry Rogozin said in an interview with the agency in March. “Its implementation should begin on January 1, 2018,” Rogozin noted.
Borisov stated in February that one of the priorities of the new state program is to achieve 70% of the Russian Armed Forces (RF Armed Forces) equipped with modern weapons and equipment by 2020, and to develop nuclear deterrent forces and aerospace defense assets.
“The priorities include the development of communication systems, reconnaissance and control, electronic warfare, unmanned aerial vehicle systems, robotic strike systems, modern transport aviation. Among the most important tasks is the modernization of high-precision weapons and means of combating them, personal protection systems for military personnel,” - said the Deputy Minister of Defense of the Russian Federation.
“The development of the Navy will be provided, primarily in the Arctic zone of the Russian Federation and the Far East, as well as the improvement of the technical equipment of the Armed Forces through the modernization of existing and procurement of weapons, including dual-use ones,” Borisov noted.
Increasing political tensions in the world are forcing Russia to pay more attention to the development of the Armed Forces. In 2016, the country increased military spending by 5.9% to $69.2 billion and entered the top three in terms of defense spending. This is stated in the latest report of the Stockholm International Peace Research Institute (SIPRI).
According to the report, more than half (55%) of the Russian defense budget went to finance the state arms program. Moreover, there are several such programs. At the moment there is a program for 2011 - 2020 (20 trillion rubles), a new one will come into force in 2018 - until 2025. Thus, the Ministry of Defense is seeking continuity in the rearmament process.
The main objectives of the new state weapons program will be the creation of facilities for the deployment of air, land and sea-based nuclear deterrent forces and means. In the context of the escalating conflict on the Korean Peninsula, this looks like a necessary measure. In total, 1,740 different facilities are planned to be put into operation, he said Sergei Shoigu at the board of the Ministry of Defense of the Russian Federation.
The military has opponents in the government. So, if the Ministry of Defense expected the volume of financing for the upcoming program to be 55 trillion rubles, the Ministry of Finance proposed limiting it to 12 trillion rubles. As a result, a compromise was reached - costs were optimized, reducing the cost of the program to 30 trillion rubles. How this will affect the country's defense capability is still unclear.
The reasons for the Ministry of Finance's stinginess are obvious. In the context of a sharp drop in oil prices, budget revenues from the sale of energy resources fell sharply. It is impossible to compensate for them through the sale of high-tech products - the Russian economy remains a raw material economy. As a result, military spending amounted to 5.3% of Russia's GDP in 2016. This is the highest figure for the post-Soviet period.
For comparison, the “standard” for NATO countries is 2% of GDP. These are the costs sought Donald Trump from American alliance allies. For example, Germany spends only 1.3%. Russia, in order to maintain at least approximate parity, has to spend a much larger share of the gross product.
However, Russian military spending against the background of a similar indicator of a potential enemy, the United States, looks very modest: 69.2 billion versus 611 billion dollars. In terms of defense budget, America occupies a leading position. Its share in all world military spending is 36%, Russia's share is only 4%. Moreover, in 2018, Trump intends to increase the military budget by another 9% or $54 billion.
An important factor in the new geopolitical reality is the military budget of China, which occupies second place in the ranking. Russia's ally spent $215 billion last year, or 13% of global spending. US ally Saudi Arabia reduced spending by almost a third, to $63.7 billion, which dropped it to fourth position in the ranking.
Top five countries in terms of defense spending. Expenditures in billions of dollars and percentage growth for 2016.
The head of the laboratory of military economics at the Institute of Economic Policy, Vasily Zatsepin, sees high spending on the defense industry as rather negative.
— I draw attention to the opinion of the Deputy Minister of Defense of the Russian Federation Yuri Borisov, which he expressed two years ago. According to him, the military burden of the economy over 4% of GDP indicates that the country is getting involved in an arms race. I think he can be trusted. There are other indicators of everyday life. For example, when pensions are not indexed. For four years, military personnel do not have their pay indexed. Let me explain, we are conducting an ongoing experiment to pay conscripts two thousand rubles a month. But banks were paid about 1 trillion last year.
“SP”: — More details, please, about banks.
— This happened in the order of returning money for loans for state defense orders received from Russian banks since 2011. In parallel with the budget, we used a credit financing scheme. This didn't happen before. Financing of defense needs should come without any loans. To avoid paying extra. Our banks have amassed, according to some estimates, up to 300 billion.
According to the expert, in 2010 the government chose an “innovative” scheme based on both budgetary allocations and loans under state guarantees. The banks hoped that having invested funds in the Russian defense industry at high interest rates, they would then refinance in the West and remain with a profit. However, after sanctions were imposed on them in 2014, the beautiful scheme collapsed. Since the state acted as a guarantor of transactions, it had to take away funds from civilian government programs.
Nevertheless, military expert, senior researcher at the Higher School of Economics Vasily Kashin sees increasing funding for defense state programs as beneficial both for the country’s defense and for the civilian sector of the economy.
“We must understand that the relationship between defense budget expenditures and the country’s military potential is not linear. Just look at the data for Great Britain, whose military spending is comparable to Russia. At the same time, the UK actually does not have its own nuclear weapons - they are forced to purchase ballistic missiles from the Americans. They have a little over 200 combat aircraft, half of which are not combat-ready. The British army consists of tens of thousands of people, the navy has run out of anti-ship missiles, etc. In addition, Britain does not have a space program at all. While North Korea and Iran are capable of launching satellites themselves, the British are not.
In France, things are better, but if you compare how much Russia has for every billion dollars invested, it will also not be comparable. This also includes Saudi Arabia, which Russia has now pushed back to fourth place. The Saudis do not have their own military-industrial complex at all, but at the same time they are waging war ( in Yemen - author.). Moreover, they do not have the personnel to service the complex weapons they purchase. There are entire towns of American technical specialists there who are engaged in servicing aircraft, air defense systems, and so on. For example, only a few years ago the Saudis learned how to change engines in tanks without the help of foreigners. It is a rich but technically underdeveloped country.
That is, the effectiveness, the resulting combat potential, per dollar invested, Russia has very high compared to other countries. Here we are comparable to China, and in some ways even better.
“SP”: — Do you consider the share of GDP that Russia spends on defense to be too large? Can we talk about an arms race?
— The increase in the share of GDP spent on defense is associated with the legacy of an absolutely terrible period from 1992 to 2009, when nothing was purchased or done at all except the development of absolutely necessary strategic weapons systems. Since 2009, they began to promote the mechanism of government procurement and new weapons entered the armed forces en masse. Therefore, due to the fact that there was no rhythmic replacement of military equipment for 17-18 years, we had to replace a huge amount of weapons and equipment in a very short time. Some of this arsenal, for example, solid-fuel missiles, will simply physically reach the end of their service life and will pose a danger. Since radical modernization is expensive, it was easier to re-equip.
Hence the gigantic expenses, compressed into a short period of time. Now they are already beginning to gradually decline, and after 2020 they will decrease even more significantly. And to prevent this from happening again, we will have to adhere to a more rhythmic approach in the future, when every year a part of the old weapons is planned to be replaced with new ones. Otherwise, it is bad for both defense and industry. It’s no joke, combat aircraft were not purchased for the Air Force until 2010-2011.
“SP”: — There are many social problems in the country. Is it worth going to such expenses?
— Large-scale defense projects are not only necessary for the survival of the country, but also have a great economic effect. If you look at the difficulties of doing business that companies name, then among the first 2-3 problems you can see a lack of qualified personnel. Our industry really lived for a long time on the personnel reserves of the Soviet period. The old people left, but there was no replacement for them. The average age of engineers and workers was constantly increasing. Thanks to the state armaments program, this average age has begun to decrease. A generation of technical personnel has already been trained who, thanks to their qualifications, can also work in civilian industry. This is a colossal contribution to economic development.
The export of Russian weapons this year will remain at the level of $15 billion. This was announced by Deputy General Director of Rosoboronexport Sergei Goreslavsky at the Army-2016 forum taking place in Kubinka near Moscow. Which countries are leading in the arms trade, how much the Russian military-industrial complex brings to the country's budget and which products are the most successful - in the Kommersant infographic.
According to the Stockholm International Peace Research Institute (SIPRI) for 2014–2015, Russia ranks second among arms exporting countries, and the leader is the United States.
The most profitable year for the Russian military-industrial complex was 2013, after which export revenues began to decline. At the same time the share of military products in total exports continued to increase- from 2.98% in 2013 to 4.19% in 2015.
In 2015 Seven Russian enterprises were included in the Defense News ranking of the 100 largest defense companies in the world. For comparison, America is represented by 42 corporations, including first and second place winners Lockheed Martin and Boeing, whose revenues amounted to $40.1 billion and $29 billion, respectively.
According to experts, the largest contracts for the supply of weapons to Russia were brought by T-90 tanks, Su-30 fighter jets and S-400 anti-aircraft missile systems. From 2001 to 2010, the export version of the T-90, developed by Uralvagonzavod, was considered the best-selling tank in the world.
Enterprises of the military-industrial complex are located in 72 constituent entities of the Russian Federation. In 2015, they employed about 1.3 million people. Wherein The average labor productivity in the industry is 2.02 million rubles. per person per year.
In 2012, the Advanced Research Foundation was created in Russia, responsible for innovation in the field of weapons and military equipment. By 2016, the organization’s funding in dollar terms increased slightly - to $0.07 billion. For comparison: the current budget of the US Department of Defense Advanced Research Projects Agency, the equivalent of which is the Russian foundation, is $2.87 billion.
Denis Levinsky, Elena Fedotova