Russia Warns of Trouble Fulfilling Arms Orders

[Metallic]

MOSCOW - Russia may not fulfill all of its foreign arms orders in 2009 due to financial trouble in its defense industry, a top official at state arms trader Rosoboronexport said April 22.

"According to our estimates, lower-level defense industry manufacturers will suffer most," said the head of the company's advisory group, Alexander Brindikov, quoted by Interfax news agency.

"This could result in a failure to meet our contracts" for foreign arms deliveries, he added.

He said Russia's weapons exports for 2009 should reach $7 billion, based on last year's sales.

Russia saw record arms sales in 2008 of $8.35 billion, according to figures released in February by President Dmitry Medvedev.

The weapons trade has proved one of Russia's most profitable sectors since the collapse of the Soviet Union, and in recent years Moscow has actively pursued new long-term arms contracts with foreign governments.

Source: AFP

 

[Luftwaffe]

10 more years down the lane i am guessing russians will lose this arms market and phase II of total Russian collapse is coming...China is becoming more and more independent from Russia India shift to Israel/US/France more is a clear sign...Sooner or later Russians will have to dig for new buyers previously on the do not sell list....

 

[abrakadabra]

10 more years down the lane i am guessing russians will lose this arms market and phase II of total Russian collapse is coming...China is becoming more and more independent from Russia India shift to Israel/US/France more is a clear sign...Sooner or later Russians will have to dig for new buyers previously on the do not sell list....

Dagerous signals indeed. However, Russia can do the following IMO...

1. Outsource the manufacturing to countries like India and China, pay them manufacturing cost+reasonable profit. Russia to sell the products directly.
2. Sell IPR of the technology to countries like India and China and take Royalty from them for making and selling the products

They will generate enough finances for Russia on a continuous basis without proposrtionate work. Not a new idea though, as this is how McDonalds makes a lot of money..

However these options will not work for Missiles, Nuclear technology etc due to currently prevailing regulations.