Tag Archives: SIPRI

SIPRI’s List

Always worth looking at SIPRI.  On 31 January, it released its list of the Top 100 arms producers worldwide in 2012 and 2011.

SIPRI observed a small global decline in arms sales over the past two years.  But Russia bucked the trend as “arms sales by Russian companies increased sharply, by 28 per cent in real terms.”

SIPRI provides the context for increased arms production by Russian companies that’s worth quoting in toto:

“Rapid rise in Russia due to domestic procurement plans”

“Russian companies saw a particularly large increase in estimated arms sales in 2012. Of the 6 Russian companies in the Top 100, all except United Aircraft Corporation saw increases in excess of 20 per cent, and Almaz Antei—with a 41 per cent rise—now stands in 14th place in the Top 100, the highest position taken by a Russian company since data became available in 2002.”

“Russian arms companies continue to maintain high export levels, but the increase in estimated arms sales in 2012 mainly reflects large and growing domestic sales, as part of Russia’s $700 billion 2011–20 State Armaments Plan. While there remains widespread scepticism as to whether the aims of the plan can be fully achieved, it is clear that a major increase in Russian military equipment procurement is taking place.”

“‘The Russian arms industry is gradually re-emerging from the ruins of the Soviet industry’, said Dr Sam Perlo-Freeman, Director of SIPRI’s Military Expenditure and Arms Production Programme. ‘Nonetheless, the industry is still plagued by outdated equipment, inefficient organization and widespread corruption, which will continue to limit Russia’s ability to compete technologically with the West.’”

So, it’s not just that Rosoboroneksport’s order portfolio is stuffed full.  But SIPRI sees both good and bad news for Russian defense industry and production.

The top Russian firms on this year’s list are:  Almaz-Antey, UAC or OAK, Vertolety Rossii (Oboronprom), Sukhoy (UAC / OAK), United Enginebuilding Corporation, UEC or ODK (Oboronprom), USC or OSK, and Uralvagonzavod.

Falling off from 2010’s list are Irkut and MiG (UAC / OAK) and the Tactical Missile Weapons (TRV) Corporation.

Some changes may be the result of data collection problems SIPRI faces.

Here’s SIPRI’s data on arms sales by Russia’s top producers.

SIPRI Data on Arms Sales by Top Russian Producers

Pretty interesting stuff.  Strong and stable growth by Almaz-Antey.  Steady growth for UAC / OAK and Sukhoy.  Remarkable growth by Vertolety Rossii — quadrupling its sales in three years.  Ditto for UEB / ODK — nearly quadrupling.  Even Uralvagonzavod doubling its sales over the same period.

Defense Ministry Claims More Money Needed for Armaments

General-Lieutenant Frolov

Speaking before the Duma yesterday, acting Armaments Chief, General-Lieutenant Oleg Frolov indicated the proposed 13-trillion-ruble State Armaments Program (GPV or ГПВ) for 2011-2020 is not enough to accomplish the Kremlin’s rearmament goals.  RIA Novosti reported the draft GPV will go the government’s Military-Industrial Commission (VPK or ВПК) by the end of this month. 

From the Space Troops like his boss Vladimir Popovkin, Frolov is the Defense Ministry’s Deputy Armaments Chief, and Chief of the Main Armaments Directorate. 

Frolov said 13 trillion rubles will guarantee development of strategic nuclear forces, air defense, and aviation, but the Ground Troops’ requirements for modern weapons will be underfinanced. 

He added that 28 trillion rubles would allow the Defense Ministry to cover the Ground Troops’ needs, and 36 trillion—almost three times the planned amount of the GPV—would fully finance programs for the Navy and Space Troops. 

First Deputy VPK Chairman, ex-general Vladislav Putilin responded that his commission hasn’t heard answers as to why the proposed 13-trillion-ruble allocation is insufficient for the military’s needs: 

“In the Defense Ministry’s opinion, the armed forces will degrade under an allocation of 13 trillion rubles out to 2020.  But we haven’t gotten explanations even though we’re asking:  show us these horror stories.” 

Putilin noted that the GPV is still a ‘working’ document at this point. 

At the same time, the Audit Chamber (a GAO-type organization) told the Duma the Defense Ministry is not succeeding in using its allocated funding.  Lenta.ru reported that, by varying measures, the Defense Ministry executed only 42-65 percent of the State Defense Order (GOZ, Gosoboronzakaz, ГОЗ, Гособоронзаказ) for last year.  Also of interest from yesterday, SIPRI released its estimate of Russian defense spending for 2009–$53 billion (about 1.6 trillion rubles), good enough for fifth place worldwide.  See also Grani.ru for coverage of the Defense Ministry’s difficulty spending the GOZ. 

Newsru.com captured this story appropriately as a Defense Ministry demand for more funding.  Prime Minister Putin and President  Medvedev have vowed repeatedly to increase new armaments, from the current level of 10 percent, to 30 and 70 percent of the inventory in 2015 and 2020 respectively.  What’s unknown is why at least one uniformed military man has decided to challenge the feasibility of his political masters’ long-term rearmament goals.