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Russia's Arms Exports Grow - WSJ.com
By
NICLAS ROLANDER
March 16, 2014 7:05 p.m. ET
Russia's arms exports have surged in recent years, vaulting an industry that was in "shambles" after the Cold War ended to now rival the U.S. in terms of size, according to the annual report on global arms transfers issued by the Stockholm International Peace Research Institute.
SIPRI estimates Russian arms exports grew 28% in the five years ended in 2013, compared with the same period ended in 2008. U.S. market share during the period slid one percentage point to 29% despite an 11% uptick in volume, while Russia's increased by three percentage points to 27%.
China also strengthened its position, becoming No.4 in the world after the U.S., Russia and Germany.
European exporters, meanwhile, have been hurt by military spending cuts amid economic crisis, and many nations in Europe are now seeking to buy secondhand weapons to save money, SIPRI said.
France and Germany have both lost significant market share as exports decreased 30% and 24% respectively from the prior five-year period.
Western arms producers also are facing stiffer competition from China, whose arms exports in the past had mainly been of lower-end military equipment. Now, arms makers in the country are increasingly competing with U.S. and European makers of more advanced weapons systems.
"[Russia] could surpass the U.S. in terms of major conventional arms as we define them," SIPRI's senior researcher Pieter Wezeman said. He noted that the U.S. lead is probably larger if the entire arms trade, including smaller arms, equipment and services, were taken into account.
"Ten to 15 years ago, the Russian arms industry was in shambles," he said, adding that Russia has been able to rebuild on the strength of technological capability and lower prices.
The decades-old organization, considered a global authority on arms trade and production, doesn't expect the current crisis in Ukraine to have a major impact on Russian arms sales in the near future.
"The countries which are concerned about Russia's actions are European nations and the U.S., which are not major buyers of Russian equipment anyway," Mr. Wezeman said.
In the 2009 to 2013 period, Russia delivered major arms to 52 states around the world, with Venezuela, Vietnam, Algeria and India being some of its most important customers.
Mr. Wezeman said Russia has succeeded in maintaining its position as the top supplier to India, which more than doubled its arms imports in the most recent five-year period, according to SIPRI data.
The gains in India helped offset slumping sales to China, whose industry has gotten more sophisticated in recent years allowing the nation to halve its purchases from Russia.
Russia's single most significant export last year was of the Admiral Gorshkov aircraft carrier, a Soviet-era ship that was rebuilt to become the Indian navy's INS Vikramaditiya at a reported cost of around $2.3 billion. Over the past five years, Russia was the world's largest exporter of ships, accounting for 27% of international deliveries.
China also continued to increase its arms exports, surpassing France to become the world's fourth largest arms exporter. As China's arms industry in recent years has become more sophisticated, its exports have surged, while the country's need for imports have declined.
By
NICLAS ROLANDER
March 16, 2014 7:05 p.m. ET
Russia's arms exports have surged in recent years, vaulting an industry that was in "shambles" after the Cold War ended to now rival the U.S. in terms of size, according to the annual report on global arms transfers issued by the Stockholm International Peace Research Institute.
SIPRI estimates Russian arms exports grew 28% in the five years ended in 2013, compared with the same period ended in 2008. U.S. market share during the period slid one percentage point to 29% despite an 11% uptick in volume, while Russia's increased by three percentage points to 27%.
China also strengthened its position, becoming No.4 in the world after the U.S., Russia and Germany.
European exporters, meanwhile, have been hurt by military spending cuts amid economic crisis, and many nations in Europe are now seeking to buy secondhand weapons to save money, SIPRI said.
France and Germany have both lost significant market share as exports decreased 30% and 24% respectively from the prior five-year period.
Western arms producers also are facing stiffer competition from China, whose arms exports in the past had mainly been of lower-end military equipment. Now, arms makers in the country are increasingly competing with U.S. and European makers of more advanced weapons systems.
"[Russia] could surpass the U.S. in terms of major conventional arms as we define them," SIPRI's senior researcher Pieter Wezeman said. He noted that the U.S. lead is probably larger if the entire arms trade, including smaller arms, equipment and services, were taken into account.
"Ten to 15 years ago, the Russian arms industry was in shambles," he said, adding that Russia has been able to rebuild on the strength of technological capability and lower prices.
The decades-old organization, considered a global authority on arms trade and production, doesn't expect the current crisis in Ukraine to have a major impact on Russian arms sales in the near future.
"The countries which are concerned about Russia's actions are European nations and the U.S., which are not major buyers of Russian equipment anyway," Mr. Wezeman said.
In the 2009 to 2013 period, Russia delivered major arms to 52 states around the world, with Venezuela, Vietnam, Algeria and India being some of its most important customers.
Mr. Wezeman said Russia has succeeded in maintaining its position as the top supplier to India, which more than doubled its arms imports in the most recent five-year period, according to SIPRI data.
The gains in India helped offset slumping sales to China, whose industry has gotten more sophisticated in recent years allowing the nation to halve its purchases from Russia.
Russia's single most significant export last year was of the Admiral Gorshkov aircraft carrier, a Soviet-era ship that was rebuilt to become the Indian navy's INS Vikramaditiya at a reported cost of around $2.3 billion. Over the past five years, Russia was the world's largest exporter of ships, accounting for 27% of international deliveries.
China also continued to increase its arms exports, surpassing France to become the world's fourth largest arms exporter. As China's arms industry in recent years has become more sophisticated, its exports have surged, while the country's need for imports have declined.
