Global Arms Industry Faces Financial Turmoil Amidst Rising Competition and Declining Profits
Russian arms-producing companies, Rostec and the United Shipbuilding Corporation (USC), experienced a 12% drop in revenue in 2022, worse than any other major nation, according to the Stockholm International Peace Research Institute (SIPRI). The decline is attributed to the pressures of the war on Ukraine, international sanctions, and economic strains. Russian arms exports have significantly decreased, falling from $15.8 billion in 2021 to $8 billion between January and November 2022. The collapse in exports, combined with the poor performance of Russian-made weapons, poses long-term challenges for the industry. Western sanctions and inflation also contribute to the contracting arms export revenue figures. However, the industry is not in immediate crisis, and the government is likely to step in if necessary.