Actual problems and limiting factors in the development of the Russian military-industrial complex

Abstract

Research background: The completion of the ideological confrontation of socio-economic systems that occurred in the early 90s of XX century after the collapse of the USSR did not radically affect the development of the global defense industrial complex (DIC). Taking into account the place and role of national DICs in the economies of the world’s leading powers, we can only talk about the modification of their development in the new historical conditions. The defense industry complex in Russia, as before in the USSR, is one of the priority areas of the country’s development. Purpose of the article: The aim of the article was to study the current state of the Russian DIC, to analyse problems, limitations and prospects for its development. The hypothesis was put forward that the condition of the Russian DIC is currently determined by the whole complex of factors, both internal and external, and therefore the solution of these problems should also be comprehensive. Methods: The study was based on statistical analysis of information from both official databases (SIPRI, World Bank, Federal Government Statistics Service) and other open sources. Findings & Value added: The analysis showed that all corporations of the Russian DIC have positive dynamics in the value of their assets and generally demonstrate good financial stability under difficult external and internal economic and political conditions. At the same time, a number of problems requiring prompt resolution pose a threat to the successful development of the Russian defense industry in the near and distant future. The scientific value of research is determined by the comprehensive approach itself.

The financial condition of corporations of the Russian defense-industrial complex, which are included in the TOP lists of the largest military companies in the world

“…Despite the presence of certain problems in the functioning of the Russian militaryindustrial complex (Gregova et al, 2021), overall, the recent reforms carried out can be considered successful. During the period under review, most of the companies in the Russian defense industry have shown cumulative growth in financial performance.…”

Competition in the global arms trade markets and its consequences

“…They have long formed multi-sectoral military-industrial complexes (MIC), spend huge sums on military spending, have long and successfully produced the entire range of military equipment, a significant part of which is supplied to the world market. Their positions on the world market, the share of the total volume of arms sales, the circle of buyers of their products is sufficient stable (Dengov et al, 2021;Gregova et al, 2021). Weapons are long-term and expensive products.…”