Trends in Russian Arms Export

Baidya Bikash Basu, Researcher, IDSA


Weapons trade is a unique type of business in the international market. Leading industrial powers as well as a few developing countries focus on their defence industries by actively promoting R&D in order to modernise, upgrade and consolidate their defence industrial base for national security and economic returns as well.

In the era of intense competition in the international arms market—which has been dominated by the United States—Russian defence companies are seeking to supply any armaments from basic to the highly sophisticated ones and many developing countries see Russia as a source for their military equipment. The stress on arms exports is taking place in conditions where the macroeconomic situation is grim. Russia requires hard currency to pay its debt. The government is committed to radical economic reforms aimed at integrating Russia to the global economy and moving away from the Soviet centralised, command economy to a market economy. In such conditions the Russian defence companies have been forced to look for newer markets through aggressive marketing of their products—even to countries with which they had not dealt in the past. Developing new armaments through joint collaboration with other countries is a salient feature of the present day corporate policy. The military-industrial complex (MIC) can give an impetus to developing hi-tech military equipment as well as civilian consumer items, which would be of great help to the Russian economy.

In October 1992, President Boris Yeltsin set up the Committee on the Defence Industry. The Russian Committee on the defence industry or Roskomoboronprom by its Russian name was divided into eight departments. The eight departments were Aviation Industry. Ammunition and Special Chemical Products, Armaments Industry, Communications Industry, Radio Industry, Missile and Space Technology, Shipbuilding Industry and Electronics Industry. Roskomoboronprom was responsible for all defence industries and their activities, both civilian and military. This committee was much weaker than the old ministries under the old Soviet military industrial commission or the Voyenno-promyshlennaya kommissiya (VPK) but it did provide a meeting place for the old military-industrial bureaucracy to regroup itself. The bureaucracy has been keen to upgrade the status of Roskomoboronprom. It was elevated to the status of State Committee on the Defence Industry (SCDI) or the Goskomoboronprom in September 1993. Goskomoboronprom was the successor to the Soviet Military Industrial Commission and various ministries responsible for defence production. Some 2,500 defence related industries, research institutes and design bureaus were under Goskomoboronprom including intrasectoral coordination with Commonwealth of Independent States (CIS). In May 1996, Goskomoboronprom was upgraded to create a ministry of the Defence Industry (Minoboronprom). In March 1997, Minoboronprom was dissolved and most of its functions have been transferred to the Ministry of Economy (MoE).1

Goskomoboronprom is a unified national defence complex incorporating modern industrial enterprise, design bureaus and R&D institutes. Its main responsibilities are:

l to realise state policy in the development and production of arms and military equipment;

l to implement a uniform scientific and technical policy to ensure the competitiveness of the products and services created by the defence industry complex;

l to help defence industry enterprise establish direct scientific, technical and production ties with foreign companies;

l to optimise the range of arms and military equipment supplied to foreign countries under military-technical cooperation (MTC) agreements;

l providing timely up-to-date military equipment and logistical support to the Russian armed forces and other troops;

l restructuring of the defence industrial base with real technology and higher quality and cost advantages in development and production.

To prevent the collapse of the defence industry, on November 25, 1993 a new state agency the State Corporation for Export and Import of Armament and Military Equipment (Rosvooruzhenie) came into existence. It replaced the three main arms-export organisations, Special Military Hardware (Spetsvneshtekhnika), Defence Export (Oboronexport) and Central Directorate of Collaboration and Cooperation (Glavnoye upravleniye po sotrudnichestvu i kooperatsii—GUSK). Rosvooruzhenie's main task is to handle the export of weapons and combat equipment on the basis of decisions taken by the president or the government. It works under the direct supervision of the Russian government and is accountable to the President of the Russian Federation. Rosvooruzhenie is incharge of investing private and government funds into the Russian VPK. It organises export activity with the Ministry of Defence (MoD) in close cooperation. The MoD also deputes officers to Rosvooruzhenie to coordinate their activities thereby increasing the export of high-tech weaponry meeting international standards. Rosvooruzhenie also carries out market research along with MoD and the Ministry of Foreign Economic Relations (MFER). Market research not only adds an economic vantagepoint, but also helps to understand the market from the Russian security point of view. On August 20, 1997, two more state owned enterprises were created by Presidential Decree no. 907—Promexport and Rossiyskiye Tekhnologii. This decree also transformed Rosvooruzhine into a wholly government owned enterprise. Promexport has been given responsibility to provide spare parts, components and service support as well as disposal of surplus equipment from the Russian armed forces. Rossiyskiye Tekhnologii is incharge of providing technological know-how and license manufacture.2

In May 1994, the Russian government endorsed a special Statute on Certification and Registration of the Right of Enterprises to Export Arms, Military Equipment, and Works and Services for Military needs. Certified and registered enterprises that developed and manufactured arms and military equipment were now entitled to: seek foreign clients in countries with which MTC was not prohibited, exhibit arms and military equipment cleared for export, providing technical and tactical specifications during talks, quoting an approximate price that had duly been agreed upon and then marketing. Above all, the defence enterprise could independently negotiate, sign contracts, export arms and military equipment and works and services produced in excess of State defence orders on the basis of duly obtained licenses. By the Presidential decree of May 12, 1992, a statute on MTC of Russia with foreign states was established to provide a single State Policy of decision making, licensing and export control on arms sales and to coordinate these efforts, the Inter-departmental Commission for MTC of the Russian Federation with foreign states was vested with licensing third country sales of arms and military equipment manufactured by foreign states with Russian assistance and endorsing documents concerning procedures on military-technical cooperation. Main functions were vested in the Ministry of Foreign Affairs to supervise Russia's compliance with international obligations, assuring the participants in MTC to respect the political interests of Russia.3

MTC with other countries is an important component in strengthening Russia's defence industrial capacity effectively. The Russian government's approach to MTC has been exclusively on economic benefit, maximising foreign exchange receipt, thereby improving Russia's foreign trade balance by exporting arms and military equipment and using the profits to keep the wheels of the defence industries moving. Russia's largest partners in the field of military-technical cooperation are China, India, Vietnam, Greece, Cyprus and Algeria. As of today, the volume of Russia's arms transfer agreements is nearly the same as that of the United States. During 1995-1998 the United States had a share of 23.4 per cent in global arms transfer agreements with developing nations. Russia, the second leading supplier during this period, was very close with a share of 21.5 per cent. Looking at the earlier period, 1991-94 the United States ranked first with a share of 31.8 per cent in arms transfer agreements with developing nations whereas Russia was third behind France with a share of 16 per cent.4

Russian armaments and military hardware are the most competitive in today's world market. The combat characteristics are in no way inferior to the armaments and military hardware being sold by the West. The combat aircraft of Su and MiG family, are known in the world for their unique flight characteristics. Diesel electric submarines of the 877EKM and 636 models are in great demand. 'Smerch' multi-launch fire systems, 'BMP-3' infantry combat vehicles, 'T-80U' and 'T-90S' tanks, air-defence systems 'S-300-PMU-1', 'S-300-V' 'Buk-M-I', 'Tunguska self-propelled SAMs' and 'Igla' are in good demand in the international arms market. Rosvooruzhenie exported Russian made weaponry and combat hardware to 64 countries of the world in 1998. Seven countries namely China, India, Iran, the United Arab Emirates, Vietnam, Greece and Algeria had received 82 per cent of all Russian made weapons in 1998. The precise breakdown with regard to 1998 armament deliveries by the Russian Corporate Defence Enterprises is as follows:

— Air Force Weaponry, 49.2 per cent,

— Army Weaponry, 25 per cent,

— Naval Weaponry, 15.9 per cent,

— Air-Defence Weaponry, 8.1 per cent,

— Other Weapons, 1.8 per cent.5

The total sales by Rosvooruzhenie amounted to $2.3 billion in 1998. The current volume of corporate orders is estimated to be 8.4 billion dollars, to be fulfilled by the year 2004.6

Russian arms export in the Asia-Pacific region has increased. Malaysia, Philippines, Singapore and Indonesia have shown great interest in Russian weaponry. Russia has supplied (and modernised) an entire squadron of MiG-29 fighter-bombers to Malaysia. The Philippines has embarked on Air Force modernisation and intends to procure from Russia. Singapore has bought Igla (Needle) Man-protable Air-defence System (MAN-PADS) and the relevant production license from Russia for 120 million dollars. Indonesia's ambitious plan to procure MIL-MI-17 military cargo helicopters and 8 Su-30 fighter aircraft from Russia, however, had to be put on hold as it was hit severely by the Asian financial crisis.7

The total value of Russia's arms transfers agreements with developing nations fell from about $3.2 bn in 1997 to $ 1.4 bn in 1998, ranking it fourth in such agreements with the developing world. Within the developing world-Russia's share of arms transfer decreased from 18.9 per cent in 1997 to 10.6 per cent in 1998.8 Steady decline is noticeable in Russia's arms transfer due to the severe economic crisis and the dramatic drop in the value of the rouble during the Asian financial crisis. Heavy dependence on Western financial assistance led Russia to pay the interest on foreign and domestic loans utilising one-third of its budget in 1998.9 Russia is trying to adjust to the market and pricing mechanisms in the international arms market as its traditional arms customers have been the developing states to many of whom the former Soviet Union had generously granted military assistance at discounts. The breakup of the Soviet Union terminated this practice and some of its customers are moving towards the West thereby placing the newly formed Russian defence companies under severe pressure.

The First Deputy Prime Minister llya Klebanov, who is responsible for managing the Russian state owned defence enterprise, has outlined the reform process in the Russian defence industry. According to him the defence industries urgently require overhauling and an end to duplication. Russia cannot sustain a multitude of sectoral enterprises. For the 1994-1998 period, the Russian government owes more than 25 bn roubles to the defence enterprises. The government is in the process of paying its debts and the first instalment is to be paid out by May 2000.10 Restructuring of Russian defence industry is a matter of fact and the top executives in charge of the five newly created Russian state agencies, the aerospace agency, the conventional-weapons agency, the ammunition agency, the shipbuilding agency and the guidance-systems agency agree to this proposal. The main task is to pool the design bureaus, R&D institutes and factories. The draft budget for the year 2000 provides 48 bn roubles, which is to be spent on R&D projects, procurement of latest equipment and repairing the available military equipment.11 To keep the Russian defence industry steady at its optimum level capacity, big mergers cannot be ruled out. In the near future, the merger of MiG and Sukhoi design bureaus, the MAPO and Sukhoi military-industrial complex (MIC) are likely. This will give much needed financial stability and a strong R&D base to expand production. Financing the MIC out of the Russian arms and equipment exports through MTC is taking shape, which would help in modernisation programmes, and development of new generations of weapons. The design bureaus and R&D facilities would receive further impetus to improve performance in maintaining the technological edge of Russian weaponry in the international market. The Russian Federation will receive about $3.3 bn through MTC.12 The state will act as a watchdog for these state run companies; Rosvooruzhenie, Prom-export, Rossiyskiye Tekhnologii, MiG-MAPO. The companies have to defend their budgets as well as their sales-contract volumes. Russian defence industry has already taken a large step in restructuring the national defence industrial base in the reality of market economy. The transnationalisation of defence production is one of the solutions in maintaining 'national' defence industrial capacity in the contemporary era of declining defence procurement budgets.

The Russian Duma has through the July 3, 1998 Law of MTC considered ways to break the monopoly on exports granted to government-owned export agencies. The bill is designed to restore licenses to companies that had export contracts suspended by the 1998 legislation and would allow the companies to complete those sales. By this law, companies with less than 51 per cent share were debarred from exporting arms and military equipment independently. The companies are registered with the three main state-controlled arms exporting agencies, Rosvooruzhenie, Prom-export and Rossiyskiye Tekhnologii. The companies look forward to having their own licence. In February 1999, a number of leading defence companies like Rosvertol, a helicopter company in Rostov on Don; Kurgan based Kurganmashzavod which produces infantry combat vehicles appealed to President Yeltsin to get this law reversed.13 If the companies get their licence to export arms and military equipment independently, a balance between marketing and pricing mechanism has to be created at the earliest to avoid selling a product at cheaper prices. This will checkmate the growth of unhealthy competition within the defence industries. Broadly then, Russia has to resolve the fundamental question of interrelationship between arms export policy and national security.

The three main Russian state-controlled enterprises engaged in export of armaments are Rosvooruzhenie, Prom-export and Rossiyskiye Tekhnologii. Rosvooruzhenie's main competitor is Prom-export ranking second in delivering weapons and combat hardware to the tune of more than 400 million dollars.14 Promexport develops, manufactures and exports the following type of defence equipment and armament for the land, frontier, internal, Air and Naval forces; small arms, close combat systems, self-propelled and towed guns, armoured material, anti-tank systems, portable and self-propelled air-defence systems, tactical missile systems engineering material, ammunition, air-bombs, torpedoes, explosives, powders.

The Sukhoi Aviation Corporation comprises the largest aircraft industry plants, design bureaus, R&D institutes and allied enterprises and banking structures. It is a joint-stock company with 100 per cent state capital. Sukhoi Company includes other aerospace industries and design bureaus like Komsomolsk-na-Amure, Novosibirsk, and Irkutsk. Sukhoi develops ground-based and shipborne fighters, multi-purpose fighters, fighter-bombers, attack aircraft and sports aeroplanes. Sukhoi series has Su-27SK, Su-27UBK, Su-30K, Su-32FN, Su-33, Su-35, Su-25TM, Su-25UTG, Su-26, Su-29, and Su-31. Sukhoi has developed Su-37 with a variable thrust vector. These combat and sports aircraft meet world standards. Success in the export market has helped Sukhoi to be one of the most stable financial-industrial groups (FIGs). Yalosbank represents the financial part of the Sukhoi group.

The Military-Industrial Sector's Structure in Terms of the Corporate Property breakdown (in per cent)

Type of Property 1998* 2000**

1. State run enterprises 41% 42%

2. Joint stock companies State capital 34% 42%

3. Private companies devoid of state capital 25% 16%

* Economics Ministry statistics

** Economics Ministry estimates15

Russian policy on arms exports is enabling it to pay off various debts to a number of countries and also to the international financial institutions. Russian arms manufacturing has undergone a tremendous change after the break-up of the Soviet Union. The Russian defence industries are collaborating and teaming up with the Western firms to jointly develop and market defence equipment, incorporating foreign components into their designs as well as pursuing their own military R&D.

The joint German and Russian Moscow Aircraft Product Support (MAPS) company is seeking new markets for its MiG-29 'Fulcrum' modernisation and support service programmes under the development. It will also augment the proposed sale of multi-role fighter aircraft for the first time. Formed by Germany's Diamler Chrysler Aerospace (DASA), the military-industrial group, MiG-MAPO and Russia's the State Corporation for Export and Import of Armament and Military Equipment (Rosvooruzhenie), MAPS currently operates in central and eastern Europe, where it offers upgrades to existing 'Fulcrum' operators, including Hungary and Poland. Bulgaria, Romania and Slovakia are among additional European countries to have been offered upgrades to their 'Fulcrum' fleets, thought to total 21, 18 and 32 aircraft respectively. Approximately, 18 other countries also operate versions of the MiG-29, including Germany (23 aircraft) and Russia (around 600 aircraft). Even the Peruvian Air Force is understood to be among those services interested in acquiring western-standard systems for its MiG-29 fleet. The provision of support services by MAPS with the sale of new MiG-29 is also under the agreement. In Europe MiG-29s are being upgraded with NATO standard equipment including identification of friend or foe and communications systems.16

A German-Russian consortium has been formed to arm the main battle tanks (MBTs) with NATO standard 105mm L7/M68 rifled tank guns and give them the ability to engage armoured vehicles at ranges up to 5,500m. The consortium consists of Germany's Diehl Stiftung and Krauss-Maffei Wegmann, prime contractor for the Leopard 1 and Leopard 2 series MBTs and the Russian KBP Instrument Design Bureau. The latter is the prime contractor for the family of laser guided projectiles, which are launched, from Russian T-54/T-55 (100mm), T-72 (125mm) MBT as well as the BMP-3 infantry combat vehicle (100mm) and T-12 towed anti-tank gun (100mm). This team is developing a new 105mm laser-guided projectile called Spear-essentially a 105mm NATO cartridge case and its associated propellant fitted with the Russian-developed Bastion (NATO codename: AT-10 'Stabber') laser-guided projectile that is normally launched from T-54/T-55 series MBTs fitted with a new fire-control system. The Spear is intended to have a maximum range of 5,5 km and a hit probability of over 90 per cent when the firing MBT is stationary, although it can also be fired while the MBT is moving.17

The vital source of revenue for Russian defence industries is exports. According to the figures calculated by the Military Balance 1999 Russian arms exports increased from $ 2.5 bn in 1997 to an estimated $2.9 bn in 1998. Rosvooruzhenie accounts for 80 per cent of the total, with sales in 1998 of some $2.3 bn. The other leading exporters are Prom-export and Rossiyskiye Tekhnologii. Russian arms sales have been stimulated by a number of factors. The devaluation of the rouble after the August 1998 financial crisis lowered the price of its equipment in global markets which benefited the less affluent importers, particularly the African countries. Russia's largest customers are China, India and Iran. In 1998, Russia supplied the largest consignment equipment to Syria and in 1999, to Libya.18

Russia has agreed to deliver top-of-the line fighter jets to China in a $1 bn deal during President Yeltsin's visit to China on December 9-10, 1999. The arms trading companies of both nations struck a deal on Sukhoi 30 MK fighters to China according to the foreign policy adviser to President Yeltsin, Sergei Pikhodko. Russia has already sold more than 72 Su-27SK Flanker B (Chinese name J-11) fighter aircraft to China since 1992, and in 1998-1999 contracted for licensed production by China to manufacture about 300 more aircraft. The first Chinese made Su-27SK fighter aircraft has been flight tested in December 1998. Acquisition of Su-30MK is on the pipeline and in February 1999 an agreement was finalised for the procurement of 60 Su-30MK aircraft. Technology transfer and military cooperation between Russia and China has steadily grown, benefiting the Russian economy and its defence industries too. Two Sovremenny-class destroyers have been sold to China by Russia with associated weapons and electronic fits such as, 4 SS-N-22 missile systems and about 50 SS-N-22 Sunburn/P-80 anti-ship missiles, as well as 4 Sa-N-7 Shtil missile systems and about SA-N-7 Gadfly missiles. The first one is already in China and the second one will reach China by mid-2000. Four Kilo class submarines have been procured by China. Two type 877EKM in the period 1994-96 and two type 636 in the period 1998-99. China has also procured 5 Illushin-76 transport aircraft and 10 Kamov Ka-28 Helix helicopters and an array of missiles.19

Russian key arms export to India during 1995-1998 has been the Su-30 MKI multi-role fighter aircraft. India and Russia signed an agreement on November 1996 for 40 aircraft. Ten more were ordered in September 1998. India has received 18 Su-30MKI and is due to take delivery of 32 Su-30 MKI. The Indian contract is being fulfilled by the Sukhoi design bureau and the Irkutsk Aircraft Production Organisation (IAPO). By next year-2000, India would start licence production of Su-30MKI multi-role fighter aircraft. During the visit of the First Deputy Prime Minister of the Russian Federation llya I. Klebanov to New Delhi (November 4-7, 1999) an agreement has been finalised. India has also selected MiG-29K Fulcrum to equip the aircraft Admiral Gorshkov, which it plans to buy from Russia. To support MiG-29K operations Mig-MAPO will develop a two seater naval trainer, the MiG-29KUB.20 On the bilateral MTC between Russia and India, Klebanov concluded "big contracts, joint work and joint production of arms are waiting for us in the future."21

Bangladesh has received 15 upgraded Mil-Mi-17 armed transport helicopters from Russia's Kazan Helicopter Plant to replace Mil-Mi-8s. Negotiations are on with MiG-MAPO and Rosvooruzhenie for the purchase of 8 MiG-29SE multi-role fighters.22

The value of Russian arms delivery to various regions of the world is as follows. Russian value of arms deliveries to Asia has been 32.1 per cent in the period between 1991-1994. Between 1995-1998, Russia ranked third with 14.4 per cent after the United States and France for its arms delivery to Asia. In the case of the Middle East it has been 12 per cent for the period 1991-1994 and has fallen down to 5 per cent for the period 1995-1998; to Latin America in the earlier period 1991-1994, Russian value of arms deliveries was 26.2 per cent drastically reduced to 8 per cent for the period 1995-1998; to Africa in the earlier period, 1991-1994, value of Russian arms deliveries was 23 per cent falling down to 18 per cent in the latter period of 1995-1998.23

Delivery of Russian arms during 1995-1998.


Russia delivered 4 minor surface combatants, 4 submarines, 80 supersonic combat aircraft, 60 helicopters, 580 surface-to-air missiles and 70 anti-ship missiles.24


Russia delivered 290 tanks and self-propelled guns, 610 armoured personnel carriers (APCs) and armoured cars, 1 submarine, 10 supersonic combat aircraft, 90 helicopters and 140 surface-to-air missiles.25

Latin America

Russia delivered 70 helicopters and 750 surface-to-air missiles.26


Russia delivered 10 supersonic combat aircraft and 40 helicopters.27

The four defence enterprises Rosvooruzhenie, Prom-export, Rossiskiye Tecknologii, MiG-MAPO are in the export of Russian armaments and military equipment to India. A letter from the Russian Minister of Trade Mikhail Yefimovich Fradkov also authorises Aviaexport and Aviazapchast to export transport aircraft and helicopter spare parts.


The achievements of the Russian defence industries are impressive. After the break-up of the Soviet Union, the steady recovery of the defence industries is noteworthy. Full cooperation and joint control has created a solution for the defence enterprises to present the latest equipment and technology in time to its customers in a competitive future.

More attention is to be given to conversion, modification and maintenance. Engineering support services are to be offered in a responsible way to the customers. Russian defence industries are meeting the challenge of the 21st Century by delivering the latest combat hardware to their customers.

Russian exportable weapons producers29

l MiG-29: Moscow, MiG-MAPO; St. Petersburg, Zavod im. V Ya Klimova and AO Krasnyi Oktyabr (engines); Omsk, Zavod im. Baranova (engines).

l MiG-29UB (training variant): Nizhnii-Novgorod, AO Sokol.

l MiG-31: Niznii-Novgorod, AO Sokol.

l Modernised MiG-21 (Kop'e): Niznii-Novgorod, AO Sokol.

l Su-25UB AND Su25 UTG (training variants): Ulan-Ude, AO Ulan-Udenskii aviatsionnyi Zavod.

l Su-27: Moscow, AO OKB Sukhogo, Komsomol'sk-na-Amure aviatsionnoe ob'edinenie Yu A Gagarina.

l Su-27 UB: Irkutsk, AO Irkutskoe aviatsionnoe proizvodstvennoe on'edinenie.

l Mil helicopters: Moscow, AO Moskovskii vertoletnyi zavod im. M.L. Milya; Rostov, AO Rosvertol (Mi-24, Mi-25, Mi-26, Mi-28, Mi-35); Kazan, AO Kazanskii vertoletnyi zavod (Mi-8, Mi-17); Ulan-Ude, aviatsionnyi zavod (Mi-8, Mi-171).

l Ka-50 helicopter: Arsen'ev, AO Arsen'evskaya aviakompaniya Progress.

l S-300 PMU-I air defence system: Moscow, TsKB Almaz; St. Petersburg, Gospred. Leningradskii severnyi zavod and other enterprises of AO Oboronitel'nyi sistemy.

l S-300V air defence system: Moscow, APK Konstern Antei.

l Tunguska and Pantsir air defence systems: Tula, KB priborostroeniya, Ulyanovsk, Mekhanicheskii zavod; Mytishchy, AO Metro vagonzavod.

l Buk-IM air defence system: Ulyanovsk, Mekhanicheskii zavod; Mytishchy, AO Metro-vagonzavod.

l Tor air defence system: Moscow, APK Konstern Antei, Izhevsk, Mekhanicheskii zavod.

l Shilka air defence system: Mytishchy, AO Metro vagonzavod.

l Rif and Shitl' ship air defence systems: Moscow, NPO Al'tair.

l Igla portable anti-aircraft missile system: Kolomna, KB mashinostroeniya; Kovrav, AO Zavod im Degtyareva.

l Missile systems for aircraft and ships: Khimki, KB Fakel; Dubna, OKB Raduga and AO dubnenskii mashinostroiterl'nyi zavod; Korolev (formerly Kaliningrad), OKB Zvezda and Strela factory; Moscow, KB Vympel; and NPO Al'tair.

l Ground and airborne radar systems: Nizhnii Novgorod, AO NITEL; Moscow, Liazanovskii elektromekhanicheskii zavod, MAK Vympel and Moscow NPO Vega-M.

l T-72S tank: Nizhnii-Tasgil, Uralmashzavod.

l T-80U tank: Omsk, PO Zavod transportonogo mashinostroeniya; Kaluga AO Kluzhskii motorostroitel'nyi zavod (engines).

l BMP-2 and BMP-3 infantry combat vehicles: Kurgan, AO Kurganmashzavod.

l BTR-80 armoured personnel carrier: Arzamas, AO Arzamaskii mashinostroitel"nyi zavod (Nizhegorodskaya oblast).

l MSTA-S and Giatsint-S self-propelled 152 mm howitzer and gun: Ekaterinburg, Gospred. Uraltansmash.

l Grad, Smerch and Uragan multiple rocket launcher systems: Tula, GNPP Splav and Shtamp zavod; Perm, AO Motovilikhinskie zavody.

l Metis-2 and Vikhr anti-tank systems: Tula, KB priborostroeniya.

l RPG anti-tank weapons: Moscow, NPO Bazal't.

l Kalashnikov and SVD infantry weapons: Izhevsk, AO Izhmash.

l Varshvyanka diesel-electric submarine (Kilo class): St. Petersburg, Rubin Central Design bureau; Nizhnii-Novgorod, AO Zavod Krasnoe Sormovo.

l Patrol boats and air cushion naval craft: St. Petersburg, Almaz TsKB.



1. Clifford G. Gaddy, "The Price of the Past" (Washington D.C.: Brookings Institution Press, 1996) pp. 69-70. Also see Yevgeni Kogan, "Russian Defence Conversion and Arms Exportation" Peace Research Institute Frankfurt (PRIF) Report No. 41, 1995 pp. 2-3.

2. Peter Litavrin, "The process of policy making and licensing for conventional arms transfers" & Yuriy Kiirshin, "The role of the Ministry of Defence in the export of Conventional Weapons," in Ian Anthony ed., Russia and the Arms Trade (Sweden: SIPRI, Oxford University Press, 1998) p. 109 &pp. 117-118.

3. Yengeni M. Kozhokin, "Arms Export Controls: Competition Among Executive Agencies" in Andrew J. Pierce & Dmitri V. Trenin ed., Russia in the World Arms Trade (Washington D.C.: Carnegie Endowment for International Peace, 1997) p. 36.

4. Richard F. Grimmett, CRS Report for Congress: Conventional Arms Transfers to Developing Nations, 1991-1998, (August 4, 1999) p. 5.

5. Igor Korotchenko, "Russian Arms Exporters still going strong," RIA Novosti, Information Department, Embassy of Russian Federation in India, New Delhi, 1999, p. 1.

6. Ibid.

7. Yuri Golotyuk, "Russia selling its weapons in South-East Asia," RIA Novosti, Information Department, Embassy of Russian Federation in India, New Delhi, 1999, p. 1.

8. Grimmett n. 4, p. 7.

9. Michael J. Costigan & William C. Martel, "Our failure to convert Russia's Arms Industry," Orbis Vol. 43, No. 3, Summer 1999, p. 474.

10. Russia set to expand its Military-Industrial Sector, RIA Novosti, Information Department, Embassy of Russian Federation in India, New Delhi, 1999 p. 2.

11. Ibid.

12. Ibid., p. 4.

13. See "Russia's Duma considers exceptions to Export Law," Defense News, November 22, 1999, p. 14.

14. Korotchenko n. 5, p. 1.

15. n. 10, p. 4.

16. See Craig Hoyle, "MiG-29 modernisers spread their wings," JDW, Sept. 1, 1999, p. 19.

17. See Christopher F. Foss, "Spear boosts firepower for MBTs," JDW, November 3, 1999, p. 12.

18. Military Balance 1999-2000, IISS, OUP, London, 1999, p. 111.

19. See "Russia, China seal $1b deal for fighter jets," The Times of India, New Delhi, December 11, 1999, p. 16. Also see, Jasjit Singh, "Trends in Defence Expenditure," Asian Strategic Review 1998-99, IDSA, New Delhi, 1999, pp. 46-49.

20. See Alexander Velovich, "India to build Su-30MKI next year, get MiG-29'Ks," Flight International, November 17-23, 1999, p. 20.

21. See News from Russia, vol. II no. 46, RIA Novosti, Information Department, Embassy of Russian Federation in India, New Delhi, p. 17.

22. Vayu, V/1999, p. 10.

23. Grimmett, n. 4, pp. 37-38.

24. Ibid., p. 67.

25. Ibid.

26. Ibid., p. 68.

27. Ibid.

28. SIPRI Yearbook 1999: World Armaments and Disarmament (Oxford University Press, 1999) p. 393.

29. Julian Cooper, "The Future of the Russian Defence Industry," in Roy Allison and Christoph Bluth, eds., Security Dilemmas in Russia and Eurasia (London: Royal Institute of International Affairs, 1998) pp. 114-115.