As stated in the The 30-page report "The role of Russia as an arms exporter: the strategic and economic importance of arms exports to Russia", the Russian arms manufacturers need to adapt to the growing competition in the arms market, otherwise the leading role of the country in this industry will be lost.
Currently, reminiscent of the authors of the report, Russia ranks second in arms sales in the world after the United States. The country aims to strengthen its position in new markets, the researchers note. Only USA have the same competitiveness on a broad range of weapons systems.
Great portfolio, regularly receive Russia suggests that it will remain in leadership positions in the arms market in the coming years. Russia will continue to be considered as a reliable arms supplier countries which have strained relations with Washington, the report said.
70% Russian arms exports accounted for Asian countries. India, China and Vietnam are the main buyers of Russian arms production. Middle East and North Africa — the second most important market for Russia, but the region is increasingly behave competitors of Moscow.
As the researchers note, the export of weapons plays an important role in the Russian economy. The military industry is one of the leading sectors through which Russia integrates into the world economy.
According to experts, the Russian defense industry has benefited from the rapid growth of state defense orders in 2011. However, it is not clear whether the government's plan on import substitution to compensate for the reduced access to components of weapons systems, associated with Western sanctions due to the annexation of Crimea in 2014, the report said. This situation may lead to shortages that would hinder the production and therefore export prospects.
In addition, the Russian defense industry, there are problems that inhibit innovation and could weaken the competitiveness of Russia on the world arms markets. These include physical wear and feasibility aging of the instruments of production, as well as weak ties between the defense industry, on the one hand, and universities in training highly qualified personnel.
One of the authors of the report, Richard Connolly, said that Russia is facing great internal and external challenges in the field of weapons production. According to experts, two key buyer of Russian arms — India and China — as we move towards further self-sufficiency in this area and are looking for new suppliers. "If successful, this effort will inevitably challenge the dominance of Russia in key markets of weapons," — said the expert, quoted by International Business Times.
According to the researcher, to maintain dominance in arms exports, Russia needs to rebuild its long-term strategy for the sale of weapons, in particular through the attraction of innovative technologies and solutions to the problems of the weak after-sales support. These innovations can help Russia to retain a strong position in countries such as China, despite the reduction of their dependence on Russian weapons, concluded the expert.
In late February, the Stockholm international Institute of peace studies published a report in which he said that Russia is among the five largest arms suppliers in the world, along with USA, China, France and Germany. The share of these countries account for 74% of the world total of arms exports. The first place occupy the USA. In 2012-2016 the volume of arms exports from this country increased by 21% (compared to the years 2007-2011) and accounted for one-third of world exports (33%).
The share of Russia in total world exports was 23% in 2012-2016. 70% of Russian arms exports accounted for India, Vietnam, China and Algeria, noted in the report. In Moscow said that Russia is not going to slow the pace in the industry. The Minister of industry and trade of Russia Denis Manturov said that the sale of Russian weapons this year, according to forecasts, will remain at a high level last year and will be approximately $ 14 billion.
The share of China, about the danger of competition from which the warning at Chatham House, world exports increased from 3.8% in 2007-2011 to 6.2% in 2012-2016. China is among the largest exporters, slightly beating France and Germany (6% and 5.6%, respectively).
According to the report, the largest importer of arms in 2012-2016 was India — it accounted for 13% of global supply. Thus 68% of the weapons the country has acquired in Russia.