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The Russian arms industry has seen a dramatic sales increase over the last few years, and despite a difficult economic climate, sales continued their upward trend in 2014. According to the Stockholm International Peace Research Institute (SIPRI), the number of Russian companies ranked in the Top 100 went up from 9 to 11, amounting to a share of 10.2 percent of total Top 100 arms sales in 2014.
“Russian companies are riding the wave of increasing national military spending and exports. There are now 11 Russian companies in the Top 100 and their combined revenue growth over 2013–14 was 48.4 per cent,” says SIPRI Senior Researcher Siemon Wezeman.
The Russian company showing the most significant growth in arms sales is Uralvagonzavod (which produces the T-90 and T-72 tanks) with an increase of 72.5 per cent in its arms sales. Almaz-Antey (which makes the famous S-400 missile defense system), with a near 23 percent increase in arms sales, is now in 11th position.
On the other hand, US companies’ arms sales decreased by 4.1 percent between 2013 and 2014, which is similar to the rate of decline seen in 2012–13. However, American weapons companies such as Lockheed-Martin continue to dominate the Top 100, with a 54.4 percent share of the total.
Russia is not only gaining lost ground in old markets, it is also prying open new ones. For instance, Russia arms makers are being welcomed with open arms in Iraq, once the No.1 buyer of Russian weapons. After a short break, the Chinese are back in Moscow for big-ticket weapons. India, despite its diversification spree, continues to a big customer with a mile-long shopping list.
What makes Russia a formidable player in the arms businesses is Moscow’s willingness to bankroll weapons sales worldwide. “Being ready to export sophisticated weapons on soft loan terms and other flexible financial deals give Moscow an unparalleled edge over other defense exporters,” says a UPI report.
However, not all the easy finance in the world would be able to push Russian weapons across the counter if it weren’t for their reliability and sophistication. The wars in Ukraine and Syria have proved to be an unexpected bonus for Russian arms exporters as they have showcased the versatility of their wares. Here are the five weapons platforms that are driving Russia’s defense exports.
The diesel-electric Kilos are among the quietest conventionally powered undersea boats in service anywhere and are capable of being equipped with advanced weaponry, including anti-ship and land-attack cruise missiles.
According to David Isenberg of Asia Times, “Russian submarines' unique capabilities and powerful armament are the two major attractions for foreign customers. In underwater duel modeling, Russian Kilo-class submarines invariably emerged the winner in virtual competition against German, French and Dutch submarines.”
During exercises in October 2015, the Indian Navy’s Kilo-class attack submarine managed to “sink” a nuclear-powered US Navy Los Angeles-class attack submarine.
As well as India, the Kilo is in demand in Indonesia, Vietnam and China. Another nation in the periphery that may end up buying Russian diesel-electric submarines is Bangladesh. It had initially wanted to buy Chinese subs but India – which operates ten Kilos – convinced Dhaka to buy Russian submarines instead. Defense Radar reports that Bangladesh proposes to purchase two submarines from Russia.
The S-300 Favorite is a long-range surface-to-air missile system that can shoot down aircraft, missiles and drones. Designed by Almaz-Antey, it has the ability to target up to six aircraft simultaneously with 12 missiles per target, effectively creating a no-fly zone for enemy aircraft in a radius of 300 km.
Iran is set to be the latest customer for this much feared weapon. After years of dillydallying, Moscow has finally cleared its sale. A network of S-300s in conjunction with short range air defense missiles and interceptor aircraft will make invading Iranian airspace a costly misadventure for Israel or the US.
It is a measure of Tehran’s desperation to get hold of the missile that when Moscow halted the sale following UN sanctions on Iran, the Iranians threatened to take sue Russia for breach of contract. In hindsight, it was a wise move by Russia because now it can supply as many S-300 systems as Iran wants – legally.
From 1995 to 2005, more than 70 percent of Iran’s arms imports came from Russia, according to SIPRI. Although Iran imported far fewer arms from Russia than either China or India during this time, it was still Russia’s third largest buyer. With these ties now set to be renewed, expect the Favorite to be forerunner of a massive arms flow from Russia to Iran.
Iraq, Libya, Syria and Turkey have also expressed their interest in acquiring the missile defense system.
The MiG-35, which stalled in India’s multirole fighter aircraft competition in 2010, is likely to be flying in Egyptian airspace. Moscow and Cairo are reported to be circling around a deal worth $2 billion to supply between 46 and 62 advanced MiG-35 jets to the strategically important country.
The new MiG, which was first presented at an air show in 2007 in Bangalore, India, is intended as a multi-role aircraft with good capabilities in both air-to-air missions and precision attacks on ground targets in all types of weather. The export version will be equipped with the Zhuk-AE active electronically scanned array (AESA) radar, and is compatible with Russian and Western weapon systems.
While its detractors say the MiG-35 is just a MiG-29 in new garb, in reality the MiG-35 is a vastly improved aircraft that’s 30 percent larger and is classified as a 4++ generation jet fighter.
Plus, it is no more a stepchild of the Russian military. According to Russian Air Force commander Gen. Alexander Zelin, until the PAK-FA stealth fighter is inducted, the Russian military will use new MiG-35D multirole fighters to take on the latest American stealth aircraft, the F-35.
If the sale goes through, it will be an event of strategic significance because it will mark Russia’s return to the Middle East heartland – after 40 years in the diplomatic wilderness.
When the MiG-35 was offered to India, the primary problem with the aircraft was lack of state support for the program. This had acted as a barrier in securing foreign orders.
Maintenance was the second issue. Time between engine overhauls should be at least 2000 hours and overall life 4000 hours, but the RD-33 didn't meet these parameters, a source told Kommersant. Both these issues are now sorted and the plane is ready for takeoff.
Serbia is another nation that has signed up for the aircraft.
Considering that Sikorsky, the inventor of the helicopter was born in Russia, it is no surprise that Russian choppers are a favorite of armed forces around the world.
Iraq, once a major Russian client, received the first of four Mi-35 combat helicopters from Russia in late 2013. Iraq has also begun payments for 30 Mi-28 attack helicopters and 50 Pantsir S1 short-range air defense missile systems.
The Iraq contracts have been won despite the fact that Baghdad is now strongly under American influence. In fact, a deal to buy MiG-29 interceptors was scuttled, perhaps under US pressure.
Egypt has also awarded Russian arms vendor Rosoboronexport a contract for 50 Kamov Ka-52 Alligator combat helicopters. Some of the Egyptian helicopters are maritime version Ka-52K Katran, which was unveiled earlier this year.
Saudi Arabia, which needs the support of Egyptian troops in Yemen, is believed to be funding Egyptian weapons purchases.
The T-90 is known as the Flying Tank for a reason. No, it won’t literally fly but being lighter than any western tank, it is lightning fast for a main battle tank. At the same time its armor is thick enough to destroy anti-tank rockets on contact. The T-90 is equipped with a 125mm smoothbore cannon that can fire anti-tank rounds and guided missiles.
Russia is the primary user. The biggest foreign buyer is the Indian Army, which plans to acquire more than 1,600 of these tanks that will operate in dust and heat of the Rajasthan desert. Other customers include Algeria (which has 305 of these behemoths and has an option for 200 more), Uganda, Syria, Azerbaijan and Turkmenistan. Potential customers include Cyprus, Peru, Venezuela and Vietnam.
Traditionally, buyers of Russian weapons were countries opposed to the West. China, India and other developing countries fit this bill. Lately, the effectiveness of Russian weapons has led to several loyal buyers of western arms look towards Moscow.
Some of these include the wealthy Gulf sheikdoms. Not only are countries like Saudi Arabia and Kuwait undergoing a process of modernization, they are also retooling to fight insurgency conflicts at home and the near abroad. Most of the weapons – such as Patriot missiles – they have bought from the US are completely useless in non-conventional wars.
Saudi Arabia, for instance, has expressed interest in Russian weapons with a view to gain some influence over Moscow’s dealings with Iran. At the same time, the Saudis are fighting a low-key war against guerrillas in Yemen and the equipment they will be looking for include drones, ground attack jets and transport aircraft. These are the new sectors Moscow’s new breed of defense companies should be looking at.
