Russia Plans to Spend $613 Billion on Arms

Discussion in 'Europe and Russia' started by nrj, Sep 22, 2010.

  1. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Russia plans to spend 19 trillion rubles ($613 billion) over the next decade to equip its armed forces with the latest weaponry, including what may be the first purchases of U.S. military technology since World War II, according to Defense Minister Anatoly Serdyukov.

    The Defense, Finance and Economy Ministries are in the final stages of approving a plan to increase the 2011-2020 arms budget by 46 percent from the previous estimate of 13 trillion rubles, Serdyukov said yesterday, after returning from talks with U.S. Defense Secretary Robert Gates in Washington.

    “This is the minimum we need to equip our armed forces with modern weaponry,” Serdyukov, 48, said at his Moscow office. “We could ask for a bigger number, but we need to understand that the budget cannot afford such spending, so 19 trillion is a serious amount of money that will provide considerable orders for our defense industry.”

    Serdyukov is looking abroad for arms Russian companies can’t provide, breaking with predecessors who sought to keep the country autonomous in weapons procurement. He has been lobbying for a bigger budget since at least May, when President Dmitry Medvedev said the military should triple the ratio of “state- of-the-art” equipment in its arsenal to 30 percent by 2015.

    The Defense Ministry’s proposal will push that figure to 70 percent by 2020, Serdyukov said.

    To achieve the targets, Russia wants to acquire technology from its former Cold War adversaries in the North Atlantic Treaty Organization, including the U.S., Serdyukov said.

    Helicopter Carriers

    The Defense Ministry will seek bids for helicopter carrier ships by the end of this month and expects companies from France, Spain and the Netherlands to compete against domestic defense contractors, Serdyukov said. The ministry has said the winner may sell two carriers to the Russian navy and agree to help build two more in Russia.

    “We are not interested in buying finished products,” Serdyukov said. “We want to gain know-how in the technologies and produce them on Russian territory.”

    Serdyukov became the first Russian defense minister with no military or intelligence background in February 2007, when then- President Vladimir Putin asked him to reshape the country’s 1.13 million-member armed forces. Prior to that he was federal tax chief for three years and ran a furniture company in St. Petersburg, where Putin was deputy mayor in the 1990s.

    Serdyukov, who has reduced military personnel by about 130,000 since taking office, said he’s seeking to build “a compact and mobile army” and plans to use all the tools at his disposal, including foreign weapons. Medvedev called for an overhaul of the armed forces and their communications systems after the five-day war with U.S.-ally Georgia in August 2008.

    ‘Revolutionary Development’


    “We are interested in many things, most importantly in communications, in everything that has to do with information technology,” Serdyukov said. “We would also be interested in some high-precision weapons.”

    The Center for Analysis of Strategies and Technologies forecast in June that Russia, the largest arms exporter after the U.S., would spend as much as $12 billion to buy defense technologies from European and Israeli companies over the next five years. That estimate may be increased if Serdyukov gets more money, said Ruslan Pukhov, director of the Moscow-based research firm and an adviser to Russia’s Defense Ministry.

    “Just having the Russian defense minister publicly expressing interest in acquiring U.S. military technologies is a revolutionary development,” Pukhov said by phone. “The military hasn’t bought anything legally from the U.S. since the lend-lease program in the Second World War.”

    U.S.-Russia Discussions


    Serdyukov said he and Gates talked about the issue on Sept. 16 in Washington, during the first official visit by a Russian defense minister to the Pentagon since January 2005. The two men signed agreements on future talks, including a revision of a 1993 memorandum outlining defense ties between the two countries

    “We discussed that our cooperation in the military and technical sphere isn’t developing,” Serdyukov said. “We, of course, have an interest in some American technology and, I think, they have an interest in some of ours.”

    The biggest hurdle to a U.S. deal is American legislation banning the transfer of sensitive technologies, Serdyukov said. Even if Russia can’t overcome these legal limitations, it will pursue talks with other countries, he said.

    Russia has reached understandings with France and Germany and is building relations with Italy and Israel, Serdyukov said.

    “Here we’re not talking about import but about organizing some production on Russian territory,” he said.

    Source


    Russia looking for Defense Technology from West. What does it fear? PRC's increasing Military Power?
     
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  3. Yusuf

    Yusuf GUARDIAN Administrator

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    613 bill in the next decade? i think they might be banking on oil getting to $200 in a hurry to finance it.. I mean that is a very big number.
     
  4. Illusive

    Illusive Senior Member Senior Member

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    Its a good sign, relationship with the west would improve.
     
  5. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    Chinese ought to shut up, cut short their foolish hegemonic rule and mend their ties with the bigger powers around else it is fast losing out on support of more dynamic global powers something even the Americans don’t dare do at a time when they solely happen to police the world and they need not forget, you reach the top only with the support of others and that too of bigger powers.

    Does one see china being increasingly isolated and in the attempt being encircled, I dare say it is happen right here, right now, but more importantly, can the Chinese smell the coffee?

    Nothing could be more disastrous for the Chinese than Russia leaning towards the west and to the US, along with that the US with its aircraft carriers in the south china sea with an aggressive japan!
     
  6. SHASH2K2

    SHASH2K2 New Member

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    I am not sure about Russians attitude now but for future they would definitely hate to have a strong and aggressive country like China next to them. If we look at recent interactions Between USA NATO and Russia I feel that they are trying their level best to bring Russia as well in alliance against China. Very soon RUssians will also join grand coalition against China .
    SO I would say you have hit bullseye. Russians cannot afford strong and superpower China in their own backyard.
     
  7. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Not to forget there is also angle of 'Defense Export'. The rate at which PRC is producing cheap arms & selling it to minor/major countries & Freedom Fronts, it is becoming challenging for Russia, Germany, US to survive & enhance their Defense Export market.

    Russia is looking to bring in ReadyMade products from outside & then accommodate the existing technology with newly found one to fuel Development of future arms needs.

    Ironic it is but Russia is going to face same problem India facing with level of ToT obtained after paying some real hard cash. Its a good step by Russia but won't be any easy to accomplish the sighted goals.
     
  8. sandeepdg

    sandeepdg Senior Member Senior Member

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    Common man, the shit quality of reversed engineered stuff that PRC produces can only find them buyers in some African and South American countries. They can't stand against the military industrial might of either Russia or the US, atleast not in another 25 years !!
     
  9. sandeepdg

    sandeepdg Senior Member Senior Member

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    By the way, 613 billion USD is a mind boggling amount !! How are they gonna finance it amazes me, considering its current exports are around 10 billion dollars, I think so. Unless, some miracle happens for the Russian economy, I think this plan will have some difficulty.
     
  10. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    In fact small arms business is one of the prime ongoing affair with constant demand from Freedom Organizations & underdeveloped countries. Right now nobody else than PRC is producing these arms at cheapest & fastest rate. This sector contribute to the very large extent of Defense export.

    Ofcourse PRC does not hold sophistication to export the best hi-tech arms & products so can't compete with biggies like Germany, US, Russia in that area. Although it is slowing but surely rising its overall share in distant future will become headache of Top Arms Exporters.

    Oil & energy assets.
     
    Last edited: Sep 22, 2010
  11. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    Holy Hell
    Small number, if that is meant for the entire decade. It is only $61.3Billion every year. This number will be revised again in a few years. India will out spend Russia at this rate while China already out spends Russia and India combined.

    US will out spend all three countries combined. :p
     
  12. Yusuf

    Yusuf GUARDIAN Administrator

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    60 billion a year in pure acquisition is pretty high. Not to mention other costs including salaries maintainence etc... I don't think russia can afford all that when they don't have a couple of billions to complete boomers and need finance for 5th gen fighter.
     
  13. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    India already plans military acquisitions of $120Billion by 2012.
    India spent $120B in the last 10 years upto 2009. The next 3 years will be $120B. The next 3 could be $250B and the next 5 could be $500B. The 8 years from 2012 to 2020 could be anything of the sort.

    It is achievable. The Russians will start recording good growth soon enough.
     
  14. neo29

    neo29 Senior Member Senior Member

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    Currently Russia may be more vary of China than US and Poland. Hence this move.
     
  15. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    $613 Billion!!! Goodness! What are the Russians trying to do? Bring back the USSR from its grave? But I think there is going to be some exchange in technologies and that will settle the hurdle of US tech transfer regime. Remember that USA is having hell with its Fasthawk programme while BrahMos is already 2 steps ahead after inducting the first 2 blocks already. US is interested in Russian ramjet missile technology for its cruise missiles of all the other technologies and the way I see it, US will be willing to give away some of its sensitive tech in exchange for this if at all Russia and USA go to that levels of being bonhomies. Their joining hands would be early Diwali celebrations for us should it go as planned. Which means we have 3 largest players on this planet in our arms: Russia, USA and Israel.
     
  16. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Russia Outlines 10-Year $640B Buying Plans

    MOSCOW - Russian officials have revealed a few details about Moscow's $640 billion effort to bring 80 percent of the military's arsenal up to modern standards by 2020.

    The defense ministry will buy about 600 airplanes and more than 1,000 helicopters, Vladimir Popovkin, the first deputy defense minister in charge of arms procurement, told reporters Feb. 24. About 100 helicopters will be purchased this year, Popovkin said.

    The Navy should receive about 100 new vessels, including 35 corvettes, 15 frigates and 20 submarines. Of the submarines, eight should be of the nuclear Borei class, carrying Bulava multiwarhead naval intercontinental ballistic missiles that the ministry plans to commission later this year after additional tests.

    The ministry will fund the development of a new liquid-fuel heavy intercontinental ballistic missile, to replace aging RS-18 Stilleto (SS-19 NATO codename) and RS-20 Satan (SS-18 NATO codename), Popovkin said. Such missiles can carry up to 10 warheads, he said, while solid fuel missiles, such as Topol, can carry maximum three warheads.

    Russia will buy 10 batteries of the advanced S-500 anti-missile and anti-aircraft defense missiles, expected to be put in service in 2014, as well as 56 S-400 missile batteries. Ten percent of the money, or about $64 billion, will be spent on developing new weaponry, Popovkin sai.

    This means nearly tripling annual spending on the research and design, he said. The program envisages the procurement of two Mistral aircraft carriers, in addition to the two that Russia is buying from France, as well as Iveco light multirole vehicles from Italy.

    The military does not plan massive procurement of the foreign-made weapons, though small batches of drones, sniper guns and French-made Felin infantry combat suits will be bought by the Russian Armed Forces, Popovich said. Seventy percent of the money under the program is supposed to be spent after 2015, he said.

    The government will lend $24 billion to defense companies to help them prepare for bigger contracts after 2015.

    Source
     
    Last edited: Feb 28, 2011
  17. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Russia will have a lot of oil revenue coming soon so this number can be achieved.
     
  18. ajay_ijn

    ajay_ijn Regular Member

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    This year, Indias capital outlay is 15 billion USD.

    to reach anywhere between 100 to 150 billion/year by 2020 we will require 26 to 33% compounded annual growth. Nominal GDP with that kind of growth should be more than 10 trillion USD.

    120 billion for next three years is quite ambitious. What does 120 billion include after all?, are you considering about weapons at present prices? in that case even the 750 billion dollar estimate upto 2020 is ambitious.
     
    Last edited: Feb 28, 2011
  19. ajay_ijn

    ajay_ijn Regular Member

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    yes everything does depend on oil prices for them. but prices can go either way swinging the fortunes of oil economy.
     
  20. Rahul92

    Rahul92 Senior Member Senior Member

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    Well If Russian's are ready to produce then India ready to Finance
     
  21. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    With higher inflation in many nations I think commodity prices like oil will stay high most of this decade? IMO
     

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