Actually Russia present a small deficit. True the fiscal situation is by far not as bad as in Western Europe and in the USA, but it was a infighting on the subject with Kudrin launching warning shots about overspending on the Armed Forces.
Anyway, I think the main decisions have been taken and now the focus in the implementation management, schedules fulfillment and delays and so on.

By the way the price of Yasen subs seems exorbitant.

PD: I am anxiously expecting “the salvo”. 🙂

I am not sure a world wide economic collapse is coming. In any case the worst case scenario should not hard hit Russia since energy prices will not collapse due to the likely increasing demand from the two demographic giants (China and India). What we will likely see is a slow and steady declining of the economic might of the Western bloc. So Russia may replace some declining Western demand by a growing Asian demand.
In addition Neocon big mouths are calling for a new Cold War (see Heritage, Stratfor, …) and also Russian planers are predicting cooling relations with the West. This may influence the shape of the modernization program. Decisions on the size and composition of the Navy seems to be already taken and now the implementation stage is starting. Carriers seems to be pushed farther in the time horizon but I thinks they will be on the Table. Now the priority is given to refresh the submarines fleet and to replace small surface vessels.

Nevsky is joining to the party

http://en.rian.ru/mlitary_news/20110630/164938745.html

Not sensible operating mixed fleets of such small numbers.

But by maximizing the commonality of spare parts you may have both of them. I mean same engines, same radar T/R modules, same avionics components and so on. May be you are right on the numbers. I don’t know what’s the economical feasible threshold. Anyway, that’s just fiction.

No Australia, nor Argentina, nor South Africa will buy Russian hardware.

a modernized Su-27/J-11 variant wouldn’t be a bad idea.
I would go for an all two seater force.

Su-34 will always have better range and persistency. I think it is the perfect replacement of the Australian F-111s. IMO the Fullback fits very well for large and scarcely populated countries with long shorelines (Australia, Argentina, South Africa) and for non scarcely populated too (Brazil, Indonesia).

I know the political infeasibility of my opinion.

… country with lots of maritime areas to cover, it needs a long range aircraft so it can rely on less bases.

Thats call for the Su-34.

My cousin there told me some bizarre stories. There are money in Argentine but the government is deliberately forcing the starving of the armed forces. Food producers must pay a special exportation tax whose revenues are channelized to give gifts to unskilled undereducated people. This in turn create a big inflow of undereducated unskilled people form Andes countries to regions formerly populated by whites, thus creating ethnical tensions. That’s seems really weird.
And some politicians claim that is good to terminate with the Army. So, to buy new fighters is the last priority.