Military Review

Weapon market: why is Russia on the rise?

25
Weapon market: why is Russia on the rise?

The value of the annual report of the Stockholm Peace Research Institute (SIPRI): in 2014, it was Russia that won the largest share of the market compared to Western manufacturers weapons.


The Russian defense industry is showing wonders. According to the latest data from the Stockholm World Research Institute (SIPRI), Russian manufacturers in 2014 increased sales by 50%. Nineteen defense enterprises, including their affiliates, are included in the 100 rating of the world's largest arms manufacturers.

This active growth stands out strongly against the background of rather mediocre indicators that western participants in this sector were able to achieve: taking up 80% of the market, which is estimated at a total of 400 billion dollars, Americans and Europeans faced a decline in sales by 3,5% in value terms and by 7,4 % in volume compared to the same period of the previous year.

New real border "East-West"

This is a clear sign that the affairs of these countries and their producers are now quite bad. First of all, they are suppliers to their domestic market, and also satisfy the demand of their own armed forces and allied states.

In general, taking into account all countries, the global arms market has slightly decreased - in comparison with 2013, the fall was 1,5%. A real border is beginning to appear between Western manufacturers, whose sales are falling, and new participants, among whom Russia is becoming more and more dominant.

Traditional clientele

Russian manufacturers make a profit from two main markets, which show great demand and have always, from Soviet times, used Russian equipment. This is India and China. They themselves, if necessary, are engaged in manufacturing under a license, working to improve equipment, but always make purchases from “Big Brother” -
Russia.

Most of the former Warsaw Pact countries, which are now under the command of NATO, naturally moved to the Western arms suppliers.

New growth prospects

However, other countries are showing an increasing interest in Russian equipment, which at one time had advantages in terms of a favorable price and reliability of the design, compared with Western equipment, which is technologically more complex and therefore more demanding in terms of maintenance and control.

As SIPRI notes, recently another phenomenon contributes to a significant increase in sales of Russian weapons: “The conflict in Ukraine and economic sanctions are not a hindrance, they forced Russia to invest in the development of technologically more advanced weapons and look for new sales markets.”

The conflict in Ukraine as a vector of growth

In other words, Russia exports more than just Kalashnikov assault rifles. It looks like it is a more modern and sophisticated weapon, at a lower price than its competitors.

The arms race in the Middle East and Asia allows Russian manufacturers to experience a sharp increase in sales and an increase in profits. The Ukrainian conflict, instead of harming Russia, opened to it all the most promising markets. Moreover, the Crimean conflict has completely eliminated one of the largest competitors of the Russian defense industry - Ukrainian manufacturers.

A few years of steady growth ahead

Ukrainian enterprises, which produced a large amount of Russian equipment under license, faced a sharp decline in sales compared to the same period last year - by 37%, the trade turnover of the country's largest concern, Ukroboronprom, was reduced by half.

A freer competitive field, an increase in the range of technologies, promising old and new sales markets: according to experts, Russian weapons manufacturers are waiting for several successful years of growth, although the Russian military export agency (Rosoboronexport - approx. Ln.) Out of caution now prefers to rely on stable sales in the next three years, taking into account the negative effect of exchange rates.
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  1. There are a lot of us
    There are a lot of us 17 December 2015 05: 24 New
    13
    Why, why ... Yes, because Obama has torn its economy to shreds.
    1. Alexei
      Alexei 17 December 2015 05: 32 New
      +3
      Quote: There are many of us
      Why, why ... Yes, because Obama has torn its economy to shreds.

      Well, he didn’t break it, but he patted it ...
      1. mihasik
        mihasik 17 December 2015 09: 10 New
        0
        Quote: Alexej
        Quote: There are many of us
        Why, why ... Yes, because Obama has torn its economy to shreds.

        Well, he didn’t break it, but he patted it ...

        According to Ulyukaev and Siluanov, we have already found the bottom of the economic decline. The ruble is falling, inflation is rising, the Central Bank and the Government of the Russian Federation - they are doing well (according to Medvedev).
        Went to minus the second level of the bottom?))
        How is it in the movie "Only Old Men Go to Battle"?
        - It's okay. I'm falling!
        1. Black Colonel
          Black Colonel 17 December 2015 10: 27 New
          0
          According to Ulyukaev and Siluanov, we have already found the bottom of the economic decline.
          And how stable is it, is it the bottom? Rocky or deep dumpling (silty sediment)?
    2. Al_oriso
      Al_oriso 17 December 2015 06: 14 New
      +3
      Why, why ... Yes, because Obama has torn its economy to shreds.

      And if he continues to tear our economy further, then it’s scary to imagine the scale of our future growth.
      The meaning was ambiguous, but it was intended.
      1. dmi.pris
        dmi.pris 17 December 2015 06: 27 New
        +5
        And here it depends only on us ourselves, or we will flounder, or in full steam ahead ... More precisely, will Putin be able to destroy the system (not bureaucrats, namely the SYSTEM OF BURNERS AND VILLAINS). It is the national economy that will lift the country, and not the snickering bankers and manufacturers ...
        Quote: Al_oriso
        Why, why ... Yes, because Obama has torn its economy to shreds.

        And if he continues to tear our economy further, then it’s scary to imagine the scale of our future growth.
        The meaning was ambiguous, but it was intended.
    3. clidon
      clidon 17 December 2015 06: 58 New
      0
      So far, all Russian economists have been holding their breath looking at the cost of oil (which is understandable, given its impact on the budget), and not on the profits from the sale of weapons. Therefore, these sales are more likely an indicator that we have a world-class product, which, with the fall of the ruble, further increased its attractiveness.
      1. Sirocco
        Sirocco 17 December 2015 07: 38 New
        +5
        Quote: clidon
        Therefore, these sales are more likely an indicator that we have a world-class product,

        This world-class product, as expected, is the locomotive of all production in Russia, the military-industrial complex will pull the agro-industrial complex, which is no less important to us today. Although many liberals are afraid of this, stating that they say why do we need an army, weapons, and space. Like pensioners sit hungry, and in the cold. Now we see that the future of Russia is just for the military-industrial complex.
        1. clidon
          clidon 17 December 2015 08: 11 New
          +1
          It takes money to be a locomotive. Money not only from production workers (for re-equipment, development), but also from buyers. And among buyers (I will not talk about production workers), they are becoming less and less, despite the fact that the price of the goods (internal in rubles) is growing by leaps and bounds. In addition, in order to trade and compete in "non-target" goods, experience in both production and sales in this sector is required. And where does the defense industry get it from?
          1. Sirocco
            Sirocco 17 December 2015 08: 27 New
            +3
            Quote: clidon
            to trade and compete in "non-target" goods requires experience in both production and sales in this sector. And where does the defense industry get it from?

            I mean from where? Just the defense industry, this experience is more than enough. If some enterprises survived in the 90s thanks to this experience, now God himself has ordered this to be taken.
            Now about the weapon, and who will buy it. I think now, weapons are like bread, both without bread and without weapons, in the modern frightening world, you will not survive. Therefore, if you want to live, you will save on everything, but not on weapons. Otherwise, the students of the "partners" will come and eat everything in the cellar, they will use their spouse, and the owner (who is not the owner, since he allowed this) will wash their trousers.
            1. clidon
              clidon 17 December 2015 08: 58 New
              +1
              Enterprises survived primarily and secondly due to exports (or, much less commonly, government orders). The same weapon, that is, what they knew how and how to do.
              There were, of course, still happy exceptions - for example, when it was possible to develop or maintain an existing "civilian branch" of an enterprise (like GAZ with a Gazelle) or find practical use in the civilian sector for military products with minimal alteration (aircraft engines for gas workers). But experience in mastering some kind of third-party civilian product line, entering competitive markets with it, and even more so conquering a significant segment there, is a unique business for Russia.

              Well, there’s a special conversation about military markets. Weapons will certainly be bought, and perhaps even will be bought more. The problem here is that this market alone will not replace the civilian sector in any way. If only because it is relatively small. This is also clearly visible in the revenue to the Russian budget.
    4. Vikings
      Vikings 17 December 2015 11: 02 New
      +1
      It would not be bad to know! What is the share of sales of Our weapons,
      in terms of matching cash and credit ??
  2. Misha Honest
    Misha Honest 17 December 2015 05: 31 New
    +1
    promising old and new markets: according to experts, several successful years of growth await Russian arms manufacturers

    Oh oh After all, we are slowly losing the large and promising Latin American market: Argentina, Brazil (possibly), Venezuela.
    Arms Race in the Middle East

    An interesting strategy, however, is to arm everyone, including your enemy. wassat This is me about Saudi Arabia and other monarchies in the region, ready at any time to help the Yankees cut our throats. The supplies of our weapons to Malaysia, Indonesia and the Philippines are also doubtful - countries that, in general, eat the Yankees from their hands. hi
    1. Al_oriso
      Al_oriso 17 December 2015 06: 03 New
      +1
      Today's enemy may be tomorrow's most loyal ally. To do this, he needs to be convinced of your strength, and he also needs to become dependent on you.
    2. EvgNik
      EvgNik 17 December 2015 06: 09 New
      +4
      Quote: Misha Honest
      However, we have an interesting strategy - arm everyone, including your enemy

      Let's not sell weapons. Generally nobody. And then peace and prosperity will come to us. Precisely, we will live in paradise (there, in heaven).
      1. Misha Honest
        Misha Honest 17 December 2015 06: 27 New
        +3
        Quote: EvgNik
        Let's not sell weapons. Generally nobody. And then peace and prosperity will come to us. Precisely, we will live in paradise (there, in heaven).

        Ideally, it would be nice. laughing However, I am a realist and I believe that the Russian Federation will not be able to survive without this market segment. But, one must think with his head even a little bit - about the consequences: what are we selling, to whom are we selling and against whom this weapon will be used! And often one gets the feeling that those in power think only of wallets. am
    3. S_last
      S_last 17 December 2015 12: 22 New
      0
      There are big doubts that Saudi Arabia was going to buy weapons from Russia. Yes, in 2014 there was talk, and even the amount was called almost 10 billion. They are 100% sitting on the NATO standard, why do they need such tricks. All these are soap bubbles.
  3. LÄRZ
    LÄRZ 17 December 2015 05: 39 New
    +4
    We are growing ... That's right, if there is demand, we have good proposals. Just don't stand still. And there, you see, and somewhere else in the "breakthrough" let's go.
  4. Dimon19661
    Dimon19661 17 December 2015 05: 40 New
    +2
    Quote: Misha Honest
    promising old and new markets: according to experts, several successful years of growth await Russian arms manufacturers

    Oh oh After all, we are slowly losing the large and promising Latin American market: Argentina, Brazil (possibly), Venezuela.
    Arms Race in the Middle East

    An interesting strategy, however, is to arm everyone, including your enemy. wassat This is me about Saudi Arabia and other monarchies in the region, ready at any time to help the Yankees cut our throats. The supplies of our weapons to Malaysia, Indonesia and the Philippines are also doubtful - countries that, in general, eat the Yankees from their hands. hi

    None of these countries threatens the sovereignty of the Russian Federation.
    1. Misha Honest
      Misha Honest 17 December 2015 05: 45 New
      0
      Quote: Dimon19661
      None of these countries threatens the sovereignty of the Russian Federation.

      Even in a coalition with the United States? lol
  5. andr327
    andr327 17 December 2015 05: 43 New
    +5
    Answer to the title: Because there is a Strategic Missile Forces. Happy holiday strategic missiles!
  6. 205577
    205577 17 December 2015 05: 43 New
    +4
    We are certainly great fellows, which more than successfully compete with the West.
    At the same time, I am always simply amused by the arguments of Western politicians, journalists and other bastards, when, when some regular "freedom fighter" fed by the West commits any atrocities, these "shouts of democracy" scream with pathos: "Look at everything, the murder was committed with a Kalashnikov assault rifle! " In reality, such a lack of elementary decency is sometimes simply shocking. Well, whose cow would bellow!
    A gangster state that equips everyone with its weapons calls for the censure of the rival's arms trade!
    In fact, it’s not the weapon that kills - it kills the person pulling the trigger, but even deeper - it kills the Idea that someone put into the person’s head. And who in recent decades has we been the most active promoter of the latest world ideas? That's right - the West. And not only ideas, but also active actions that are justified by these very ideas.
    I am pleased that we are quietly and peacefully beginning to successfully compete not only in the sale of weapons, but also in the supply of Ideas, while not necessarily aggressive, often vice versa - defensive. This is our real strength, this is our real weapon, which ultimately will provide the World.
  7. Gray 43
    Gray 43 17 December 2015 05: 55 New
    +1
    Everything is in accordance with the law of nature — if somewhere has disappeared, it means somewhere has arrived, the civilian sector has sunk, but the military has risen. The doubts of the forum colleagues about the correctness of the supply of weapons to the not so friendly Gulf Monarchies, I note that if not us, then either the staff or the Chinese will take this place, and you should not forget that weapons without people are nothing, and people should be trained and motivated, and the presence of big money does not guarantee the same fighting spirit
  8. dchegrinec
    dchegrinec 17 December 2015 06: 13 New
    0
    The psychology of almost any person: when there is a lot of money, you want to try the most expensive. And when it is limited, you start looking for characteristics. The world economy is now in a recession, therefore, against the background of aggravated conflicts, for the money that countries have, they want to find not expensive but high-quality goods .And Russia is out of competition here. It is necessary to expect that some countries will not return to the Western market soon and a "not plowed field" opens up for Russia! You just have to take advantage of it!
  9. Mountain shooter
    Mountain shooter 17 December 2015 06: 14 New
    +2
    Purchased weapons can threaten a neighbor, because of the fence. They can’t fight seriously. Ends fast. Relatively small-scale clashes in Novorossia at some point killed the dill aviation and severely thinned tank troops. If you do not have a lot of money to replenish warehouses, warehouses run out, even as vast as former Soviet ones, at a catastrophic rate. Especially high-tech species.
  10. ps-1972
    ps-1972 17 December 2015 06: 44 New
    0
    Because the Soviet Union had such a solid military-technical base that it could not be completely plundered over the years of collapse. And when needed, they started production again. Thanks to those nameless heroes who saved what they could! (it is a pity that the flag was tied to me with a sky (((
  11. Mikhail m
    Mikhail m 17 December 2015 06: 45 New
    0
    Due to the fall of the ruble while maintaining the dollar price, the profitability of production sharply increased, which allows us to lower the dollar price. The effect is short-lived, but allows you to conquer new markets.
  12. pvv113
    pvv113 17 December 2015 07: 00 New
    0
    In the arms market, a weighty criterion is the ratio of quality to value. For Russian weapons, this coefficient is the highest. Well, the reliability of weapons, confirmed in all corners of the globe in various climatic conditions, plays an important role. hi
  13. Evgeniy667b
    Evgeniy667b 17 December 2015 07: 50 New
    +1
    They sold a lot to Azerbaijan, and what position has Aliyev taken now? Turkey is promoting and RF sticks in the wheel inserts. But for now! little things. We have only money at the forefront, even to the detriment of oneself. And we have Euphoria out of pride for what we have done. How can she come around ... in a nightmare.
  14. Indifferent
    Indifferent 17 December 2015 09: 01 New
    0
    Arms production is our only high-tech export. It is this industry that can pull out the rest. What's the difference to whom to sell? We do not sell the latest developments anyway. The same export of Kolibr missiles. There are only missiles at a range of up to 350 km and no more. So everything else. As far as I know, the latest electronic warfare equipment is not sold at all. And this will soon become the basis for any serious defense, and even for an attack. Nobody is going to sell strategic missiles either, as well as nuclear weapons. And this is the basis of the country's security. On December 3, a new uranium enrichment plant was launched. There are tens of thousands of centrifuges. Not just like that.
    We will not sell - others will sell. If countries have demand, then they will find where to buy. So the holy place will not be empty. So let it become ours.
    Already, the number of countries wishing to buy our weapons has increased. After the battles of our Aerospace Forces in Syria. And not only videoconferencing. There and Msta already have T-90 and Buratina tanks. We are now most of all "held by the tail" of the lack of qualified personnel. Otherwise, the market would be even larger.
  15. goose
    goose 17 December 2015 10: 49 New
    +1
    Quote: dmi.pris
    And here it depends only on us ourselves, or we will flounder, or in full steam ahead ... More precisely, will Putin be able to destroy the system (not bureaucrats, namely the SYSTEM OF BURNERS AND VILLAINS). It is the national economy that will lift the country, and not the snickering bankers and manufacturers ...
    Quote: Al_oriso
    Why, why ... Yes, because Obama has torn its economy to shreds.

    And if he continues to tear our economy further, then it’s scary to imagine the scale of our future growth.
    The meaning was ambiguous, but it was intended.

    Where are our manufacturers? Some bankers. And against this backdrop, the new multi-billion dollar government support for the banks looks like a mockery.
  16. Gormenghast
    Gormenghast 17 December 2015 21: 45 New
    -1
    Russian weapons are the third whale (without oil and gas), on which Russia stands (currently); the other two are the nuclear and aerospace industries.

    Rosoboronexport is known all over the world; as well as Rosatom and Roskosmos.

    And the most unpleasant thing for "partners"- this is what is born at the junction of these industries: Rosoboron + Rosatom and Rosoboron + Roskosmos. The Ameris are extremely reluctant to get acquainted with the fruits of these alliances, such as hypersonic and anti-satellite weapons.