Russian arms sales collapse

SIPRI: Russian arms sales fell 6.5 percent to $ 26.4 billion

Russian arms sales fell in 2020 by 6.5 percent compared to 2019, from $ 28.2 billion to $ 26.4 billion. This is stated in a study of the world's 100 largest arms companies from the Stockholm International Peace Research Institute (SIPRI).

This indicator has been declining for the third year in a row, and over the last period Russian companies have shown one of the sharpest drops among all market participants. The reason for this, according to SIPRI experts, was the completion of the state armaments program for 2011-2020. The coronavirus pandemic also intervened, which increased the delivery time.

Sales of the Almaz-Antey concern fell by 31 percent over the year, and the United Shipbuilding Corporation (USC) – by 11 percent. At the same time, the United Aircraft Corporation (UAC) increased deliveries by 16 percent. In total, nine Russian companies take part in the rating of the largest defense companies.

The peak of sales of domestic weapons was in 2017, when the share of suppliers from Russia accounted for 5 percent of the world market. As noted in the study, the diversification of product lines of defense enterprises also has an impact on the decline in sales. The Russian authorities require them to increase the share of civilian products. Targets are named 30 percent of revenue by 2025 and 50 percent – by 2030.

Total sales of arms and military services in the world in 2020 increased to $ 531 billion (plus 1.3 percent). The absolute leader is the United States, accounting for more than half of the market – $ 285 billion (plus 1.9 percent). Next come Chinese companies (66.8 billion, plus 1.5 percent) and British (37.5 billion, plus 6.2 percent).

This spring, SIPRI calculated that military spending in the world reached nearly two trillion dollars in 2020. This is 2.6 percent higher than in the previous year. Russia is in the top five, behind the United States, China and India.