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5 April 2015

Is Russia Losing Competitiveness on Arms Markets?

April 2, 2015

That at least is the view of Alexander Brindikov, chairman of the advisory group to the general director of Rosoboronexport, Russia's main arms export entity. Global competition from countries using technologies analogous to Russia's, such as Ukrainian and Chinese exports, challenges Russia in arms markets that are increasingly crowded. Prior to the fighting in Eastern Ukraine and the conflict over Crimea, Ukraine used to deliver technical components and technology to its Russian counterparts, maintaining the relationship established in the Soviet era, when certain key military industries were based in Ukraine. According to Brindikov, there are "internal problems" with specific Russian industries, such as electronics and high-tech equipment. Russian dailySvobpodnaya Pressa (SV) decided to verify these conclusions and investigate the outlook for Russia's military exports in 2015. "For example," continued Brindikov, "Russian armored vehicles face increasing competition from Germany, China, and even Ukraine. We have become uncompetitive, we had problems with the industry, with the delivery of the equipment. Among the industries where Russian arms manufacturers are facing difficulties to compete are artillery systems. We are in a bad position there."

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