Russia’s Syrian Success A boon For weapons Sales

Russia's Syrian Success A boon For weapons Sales

The Syrian operation provided an “excellent opportunity to show off the goods”, Ruslan Pukhov, director of the Moscow-based Center for Analysis of Strategies and Technologies, told Al Jazeera.

The operation provided a chance to battle-test “all the last-generation military systems that Russia could not test in military condition – high-precision weaponry, missiles, helicopters, planes and cruise missiles”, he said.

Kremlin insiders have stated that Russia’s success in the Syrian war will boost Russia’s arms sales by up to $ 7 billion.

Algeria has already purchased roughly a dozen Sukhoi Su-32.

Indonesia, Vietnam and a host of Latin American Nations are all lining up eagerly to buy more bombers, helicopters and other defence systems such as the S-400 from Russia.

Even Greece, a NATO member, is showing interest In Russian arms and why not when they are much cheaper and just as effective and in my cases better than U.S made weapons

Arms business is booming

Arms exports surged to a new record in 2015 to $14.5 billion and will probably surge to even higher levels.  Putin stated that was due to their “reliability and high effectiveness,” President Putin said in late March.

Overall weapons sales declined (2014) for companies in North America and Western Europe and more companies from other regions of the world made it to the top 100, the main benefactor here was Russia.  Russian weapons are cheaper and just as effective as their western counterparts, so they offer more bang for the buck.

US and Western European arms sales declining

European companies’ arms sales decreased by 7.4 per cent in 2014 and only Germany, and Switzerland experienced growth of 9.4% and 11.2% respectively.

Russia Biggest Winner

Despite brutal sanctions, Russia’s arms industry continued to gain traction and sales rose both in 2014 and 2015.  The number of Russian companies ranked in the Top 100 moved from 9-11 in 2014.

 ‘Russian companies are riding the wave of increasing national military spending and exports. 

In Europe “a large part of the defence spending, which is missing, is from procurement. It’s easier to cut procurement than to cut salaries — so the quickest thing to do is just buy less,” said Siemon Wezeman.

36 companies from other parts of the word (besides U.S) experienced sales growth of 25% or more, with Russia taking the bulk share. In Russia sales growth surged by an astounding 50%.

“Russian companies are riding the wave of increasing national military spending and exports,” said Wezeman.

The top Russian company on the list was Almaz-Antey, coming in at number 11 with a turnover of $8.84 billion.

Game Plan

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Other Articles Of Interest:

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Yuan surges past Canadian dollar for Global Payments (6 April)

China’s growing wealth makes China very good long term investment (6 April)

Some economic woes but no hard landing for China (5 April)

Fraud Crisis; U.S firms fudging their numbers like no tomorrow  (4 April)

War on cash & death of Middle Class (3 April)

  • Dan D Lion

    WW3 as an “Investment Opportunity” LOL!! You won’t be around to reap the $$ gains once Russia and China get through with the west.

  • Tactical Investor

    You seem to think that location matters when it comes to profits. If you look at China’s history they are merchants. They were a super power once and when they were, they did not go out of their way to conquer the world with force. They opened the silk road and that is what they are doing now with the new silk road.

    Russia also do not have such a torrid history as our nation. Hence, the world is likely to be more stabie, offering the astute investor plenty of opportunities. You are looking at this from the wrong perspective. Have you traveled to Asia; if you have you would see that you are looking at it from the wrong angle. Many Americans and Europeans have moved there, and are done welling.