Russia "overtakes" Britain to become second in arms production after the US

Russia has overtaken Britain to become the world's second-largest arms producer after the United States, according to a report released by the Stockholm International Peace Research Institute (SIPRI) on December 10. Britain has consistently held the second position in the list of the world's second-largest arms exporters since 2002.RIA Novostireport

"Russian arms manufacturers have significantly increased their sales since 2011, as part of the country's arms modernization program," said Siemon Wezeman, senior analyst at SIPRI. Ten Russian arms manufacturers made it into SIPRI's list of the world's top 100 arms and military services companies in 2017, accounting for 9.5% of the global market share with a turnover of $37.7 billion.

Russian Su-35 fighter. Photo: Sputnik.

Most Russian arms companies saw their 2017 revenues increase compared to 2016, with three companies reporting revenue increases of over 15%: United Engine Corporation (up 25%), Rostec Precision Weapons Corporation (up 22%) and Tactical Missiles Corporation (up 19%). Tank maker Uralvagonzavod was the only Russian arms company whose 2017 revenues decreased compared to 2016.

The US tops the list with a 57% market share and $226.6 billion in sales, with 42 companies on SIPRI's list. Lockheed Martin was the world's largest arms producer in 2017, with $44.9 billion in sales. "US companies benefit directly from the existing orders from the US Department of Defense," explains Aude Fleurant, Director of the SIPRI Armaments and Defense Budget Research Programme.

Russian military equipment is considered to be of high quality, durable and more affordable than American equipment. Many Russian weapons have been proven to be effective in real combat operations in Syria. In addition, Russia does not impose binding conditions on arms deals like the US.

In order to limit countries from buying Russian weapons, the US enacted the Countering America's Adversaries Through Sanctions Act (CAATSA) to punish Russia and countries that buy Russian weapons. China became the first victim of CAATSA when the US sanctioned the Equipment Development Department, the agency in charge of arms purchases of the Chinese military, for buying Su-35 fighters and S-400 missiles from Russia. The purchases of S-400 air defense systems by Türkiye and India are also in the sights of CAATSA.

The SIPRI military industry database has been built since 1989, including financial reports of arms manufacturing companies around the world. Russian companies have been included in the database since 2002, China is not yet included.