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Friday, March 06, 2015

Russia's Defense Industry: Breakthrough or Breakdown?

RFS Yaroslav MudryThe actual state of Russia’s military-industrial complex remains something of a mystery. On the one hand, Russian defense firms are currently breaking post-Soviet export records and providing all branches of the Russian military with new weapons systems that boast cutting-edge capabilities (at least on paper).

On the other, the country’s defense industry remains beset by countless production problems, while the armed forces have yet to confirm the effectiveness of its new systems in traditional combat operations.

And while the Kremlin insists that it will continue to increase defense spending, it now faces unprecedented financial challenges due to the fall in the value of energy exports, the collapse in the value of the Ruble, and increasingly severe Western sanctions.

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