Russian Defense Companies Are Facing A Credit Crunch

© Sputnik / Sergey Mamontov

TASS: Russia’s defense companies "starving" as they serve financial institutions, says Deputy PM

Yuri Borisov expressed hope that the next meeting of the defense commission in September 2019 would focus on the issue of loans for defense contractors

YEKATERINBURG, July 8. /TASS/. Russia’s defense contractors are forced to be on a tight budget due to the heavy debt burden, Deputy Prime Minister Yuri Borisov said at the Innoprom international industrial exhibition on Monday.

"The industrial sector that manufactures products is starving as it services financial institutions that produce nothing and are only meant to ensure the process of manufacturing process management and product introduction. Meanwhile, they (financial institutions) have profit multi-fold higher than manufacturers," he emphasized.

"We have repeatedly asked President to clean the loan portfolio. Various mechanisms may be used," Deputy PM added.

Read more ....

WNU Editor: Russian companies face credit needs (and headaches) just like everyone else.

Putin Commits To A Massive Russian Arms Buildup

Russian president Vladimir Putin inspects a weapon during a visit to an army base in Dagestan in 2008. Photograph: Ria Novosti/Reuters

Is That A Good Idea? Putin Orders Stalinesque Upgrade Of Russia's Military Hardware -- Daily Mail

* Has ordered the overhaul after jibes from the West
* Committed to spending a massive £450 billion
* It would be the first major modernisation programme since Stalin

Vladimir Putin has ordered the modernisation of Russia's armaments on the same scale as achieved by Stalin at the height of his reign of terror.

The Kremlin leader made clear he was tired of Western jibes about the country's outdated firepower as displayed at annual Red Square parades.

Read more ....

More News On Russia's Massive Military Buildup

Russia's Putin demands Stalin-era armament drive -- AFP
Russia’s £450bn for bombs, planes and subs -- The Sun
Vladimir Putin stirs memories of Joseph Stalin as he urges 'leap forward' -- The Guardian
Moscow aims to update defense -- UPI
Putin sets guidelines for defence industry -- Voice of Russia
Putin wants defense industry to be modernized quickly -- Kyiv Post
Russia's Putin calls for Stalin-style "leap forward" -- Business Times
Putin orders defense industry modernization recalling pre-WWII advances -- RT
Putin: Russia Ready to Draw on Foreign Defense Technology -- RIA Novosti

Russia's Arms Makers And Defense Ministry Still Do Not See 'Eye-To-Eye'

The current standoff between arms makers and the Defense Ministry over the pricing and quality of weaponry for the Russian military may continue to disrupt state defense orders in 2012. © RIA Novosti. Sergey Mamontov

Russian Arms Designer Warns of Problems With Defense Orders -- RIA Novosti

The current standoff between arms makers and the Defense Ministry over the pricing and quality of weaponry for the Russian military may continue to disrupt state defense orders in 2012, missile designer Yury Solomonov said on Thursday.

“The efforts of the defense industry have not yet been synchronized with the efforts of the Defense Ministry and the government,” Solomonov said at a meeting with Russian lawmakers.

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My Comment: A more detailed report (from the Financial Times) on the state of Russia's armed industry can be read here.

On a side note .... Russia's arms export business is booming.

Russia Faces An Aging Defense Industry

SU-30, armed

From The L.A. Times:

A plane, hailed as having the latest in aircraft technology, is only an upgrade on a 20-year model. It symbolizes a sector that needs an overhaul.

ZHUKOVSKY, RUSSIA -- At a once-secret airfield outside Moscow, test pilot Sergei Bogdan proudly introduces reporters to what was billed as the latest in Russian military aircraft technology, the Su-35 fighter jet.

But the plane is only an upgrade of a 20-year-old model -- and it can't match the speed and stealth of the latest U.S. fighter, the F-22 Raptor, which entered service in 2005.

Former President Vladimir V. Putin, now Russia's prime minister, has boasted of new weapons systems and of strengthening the armed forces, raising fears in the West of a Cold War-style military buildup. Flush with oil money, the Kremlin is in the market for new weapons.

But Russia's state-run defense industries, experts say, face a crumbling manufacturing base and pervasive corruption; they have produced little in the way of advanced armaments in the Putin era.

Read more ...

More News On Russia's Defense industry

Russian Military to End Their Use of Kazakh Space Site This Year -- Red Orbit
Armed With Nukes and a Vague Plan -- Moscow Times
Russia’s weaponry shows signs of age -- Pakistan Defense Forum

My Comment: A brain drain of the best scientists, corruption, an absent R&D program, no strategic direction, and declining moral .... the Russian military complex is not what it once was.

Even if the Russian government throws tons of money into weapon programs .... it will be decades .... if ever .... that they will be able to catch up with the military forces of Nato, the U.S., or the Chinese military. The manufacturing and electronic infrastructure is just not there.

I read a comment a few weeks ago that sums up perfectly the state of Russian weaponry. Russian weapons are the best weapons in the world .... but when they face American systems they will always lose.