Russian production capacity saturated
15:4121/05/2009
MOSCOW, May 21 (RIA Novosti) – Russia’s foreign defense orders total $35 billion, a federal official said on Thursday.
Russian arms export monopoly Rosoboronexport said earlier this month its defense order portfolio was worth $27 billion.
“Our overall portfolio of orders with Rosobornexport has hit $35 billion as of today,” said Alexander Fomin, first deputy director of the Federal Service for Military Cooperation, which regulates Russia’s cooperation in the military and technical sphere with other countries.
He said the Russian defense industry had effectively “reached its ceiling” and could not take on any more contracts.
“The industry does not stretch like a rubber bag. As in other countries, [our industry] has its limits. That’s an open secret,” he said.
Fomin said contracts signed for some weapon systems, especially long-range air-defense systems, stretched years into the future.
“So, our dear partners, join the line. This especially applies to such air-defense systems as S-300 and S-400, which have become so popular today,” he said.
Sergei Chemezov, head of the state-run Russian Technology Corporation, said in February that the orders would provide domestic defense firms with contracts to keep them going for the next four to five years.
The Russian defense industry currently employs 2.5-3 million workers, or 20% of industrial jobs.
Order by US$ 35.000 millon saturated the industry. So, it seems that the production capacity collapsed with the USSR. I’am confident to say that during the 80s such a quantity would had been labeled as “small”.
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