Russian arms sector needs new markets to survive: Defense official

Russian Arms Sector Needs New Markets To Survive
By MARIA GOLOVNINA, REUTERS, MOSCOW


Russia’s ailing arms sector urgently needs to find alternative export markets because it is losing its traditional Cold War-era clients, a senior defense official and analysts said on June 16.

The industry still relies heavily on exports to Moscow’s long-standing allies in Asia, but Alexander Brindikov, a senior official at state arms export company Rosoboronexport, said the good days would soon be over.

“The Chinese and Indian markets, our key clients, will disappear in a few years, that is in 2007-2008,” he told the Vedomosti business daily.

Sukhoi, MiG and other fighter jets make up about two-thirds of Russia’s defense sales but the fragmented nature of the industry has held back its recovery from the post-Soviet slump.

Brindikov told Izvestia that finding new markets in Latin America, southeast Asia and the Middle East could help offset some of the losses Russia might incur in China and India.

But Russia is not firmly entrenched in any of its potential new markets, which makes it difficult for exporters to diversify export destinations quickly, analysts say.

Entire article


Adapt or die.

Adapt, and sell Su-34s, Tu-22Ms and Su-25Ks to China!

I believe the Chinese will be sure to get something for their airforce after the military exercise with Russia. Russia will be fielding its carrier, and Chinese would obviously want to adapt to tactics Russia is using and buy some newer Russian equipment, including bombers like the Su-34 or T-22M to replace the H-6s.

What a sickening irony. A nation ..a former "superpower" who must get capital by shipping arms. Not that they are the only ones shipping arms..but they dont seem to have the ability to make a competitive home computer/laptop/ etc. How about industrial machinery. How about farm equipment,pharmacy stocks, or industrys to manufacture these commodities. How about the ability to export other than military weapons at competitive prices. HOw about food??
Makes me wonder what some people are thinking.
Dont worry ..I am not particularly picking on the Russians as when this line of thought came to me ...our then Senator on the Armed services committee..was John Warner of Virginia. I figure he knew this information and concept but never brought it to public attention.
Anyone ever seen a Russian boom box...how about a Russian Race car??
I Pod??

Why have not our leaders ever explained this concept to us..?? Do they have a vested intrest in our igonrance??

Any good economy ...industrial economy starts at the bottom of the technological ladder and works its way up to the top..not at the top and works its way down to the bottom. It must develope all the goods and services/distribution systems...from the bottom to the top in order to be world class..arms and weapons are not it. Get a clue people.!! A superpower can do these things. Was Russia ever a super power??

Thanks,
Orangetom

They should be able to make a pretty penny off space launches, cruise missles, and cargo contracts. I know the fighter jets are the typical big ticket items, but I really believe the usefullness of manned jet fighters is in decline. As automated battle systems become more prevalent, the cost and logistics of building and operating manned fighters/bombers will be prohibitive.

If your enemy can field 20 drones with high end capabilities, for ever 1 jet fighter you can bring to battle, the war has already been lost. The automated systems are more fuel effecient, lighter, more versatile and agile, and they don't cost the country anything in the realm of public opinion.

I really think these automated systems are going to become more and more widely regarded as an essential component of any army. After all, what nation in its right mind would send humans in small numbers to fight off swarms of enemy machines. It would be a losing battle in more ways than one.

If Russia wants to stay competetive in the international arms market, they need to take their ramjet technology, and any other nifty bit of hardware they've got laying around, and adapt that to the new way.

They should have good clients, willing to pay, but they need the tech to stay in the game. They've also got huge energy reserves, so maybe that will float them along in lieu of massive fighter plane contracts.

Wait and see I guess.