Russia to cut defense orders by 10% in 2016

(Baonghean.vn) - On March 11, in an interview with the Wall Street Journal, Mr. Sergey Chemezov, head of Russia's Rostec technology corporation, said that the country's government will cut about 10% of defense orders this year.

Meeting between Russian Prime Minister Putin and Mr. Sergey Chemezov - head of Rostec Technology Corporation on December 4. Photo: Reuters.

In another development, Russian Deputy Defense Minister Tatiana Shevtsova recently said that the country's defense budget will be cut by 5% in 2016 due to the difficult economic situation caused by falling oil prices and Western economic sanctions.

With the expected 5% cut, Russia's defense budget in 2016 will be around 3,000 billion Rubles (more than 42 billion USD at the current exchange rate), equivalent to 4% of Gross Domestic Product (GDP).

Previously, in the context of Russia's economic difficulties, the Russian Ministry of Finance called for a 10% cut in spending by all ministries, including the Ministry of Defense, to implement the anti-crisis plan.

In 2014, Russia exported $15 billion worth of military equipment, and Russia's arms exports in 2013 also reached a record $15.7 billion.

Phuong Thao

(According to Reuters)