August 8, 2006 :: Jane's Information Group :: News
Russia’s defense industry could have a hard time meeting its export commitments, reports the September 1 issue of
Jane’s Defence Industry. Defense agreements with Venezuela alone could reach $3 billion, a sum equivalent to almost 50 percent of Moscow’s total military exports in 2005. Venezuela is also considering additional purchases, including Tor M-1 and Osa-10 air-defense missile systems. Yet Russia already has significant commitments to other key customers, including China and India, which accounted for 70 percent of its defense exports in 2005. In addition, Moscow recently reached a defense accord with Algeria valued at $7.5 billion, in which it agreed to supply Algeria with eight battalions of S-300 PMU2 surface-to-air missile systems among other things. Further agreements with Algeria worth between $2 billion and $3 billion are expected.
Jane’s questions whether Moscow will be able to keep these ambitious commitments, as its defense industry remains tied to “old-fashioned management practices and organizational structures at odds with free-market principles,” and has thus fallen into “poor health.”
» More stories on: Industry, Proliferation, Russia
» Missile system details for: S-300P (SA-10 Grumble)
