Russia halts production of T-14 Armata.

According to a statement made by Yuri Borisov on July 29, the Russian armed forces are unwilling to purchase Armata tanks in large quantities due to their high cost.

"Well, why should we equip ourselves with the Armata series of tanks? We have the T-72, which is in high demand on the market. They compare to the Abrams, Leclerc, and Leopard in terms of price, effectiveness, and quality. The situation is similar with the Boomerang combat vehicle."

"We don't really need this (buying a large number of new T-14 Armata tanks), these tanks are quite expensive compared to the ones we already have," the Russian Deputy Prime Minister stated frankly.

Currently, Russia's defense budget has been redirected towards modernizing older tanks, and Moscow has decided to upgrade the T-72, T-80, and T-90... Russia has returned and created tank brigades equipped with the upgraded T-72B3, T-80BVM, and T-90M main battle tanks.

Yuri Borisov's admission regarding the progress of the Armata tank program, and especially the issue of the cost of this new generation tank, did not surprise many people. At the Army-2017 exhibition, Yuri Borisov himself revealed the true price of the T-14 Armata.

Currently, 23 contracts worth approximately $2.8 billion have been signed with defense contractors, and 100 T-14 Armata tanks will be delivered to the Russian army before 2020. This Armata tank contract is worth up to $500 million.

The first batch of T-14 Armata tanks will be deployed to the 1st Guards Tank Regiment of the 2nd Guards Mechanized Division named after Tamanskaya, stationed on the outskirts of Moscow and in parts of the Western Military District of Russia.

There would be nothing remarkable about the contract for 100 Armata tanks for the Russian army if it weren't for the price tag, as it would cost $500 million to acquire 100 Armata tanks – equivalent to $5 million per tank.

This price is exorbitant compared to previous offers from Russia to foreign customers. Specifically, in September 2015, Oleg Syenko, General Director of Uralvagonzavod, revealed that the unit price of each T-14 Armata tank would be only $3.75 million. At this price, the T-14 Armata became very competitive with its American and European counterparts in the export market.

Competitors to the Armata tank, such as Germany's Leopard 2, the US M1 Abrams, and the UK's Challenger 2, are significantly more expensive (ranging from $6.8 to $8.6 million per unit). Only China's Type 99 main battle tank is cheaper, costing around $2.6 million.

In the short term, this price seems impossible as it is still as cheap as the T-90 tank. However, the surprisingly low price may still apply to customers purchasing the Armata tank in large quantities. According to Victor Murakhovski, a member of the expert council of the Russian Defense Industry Committee, the T-14 Armata's technical specifications are significantly superior to its American counterpart.

"If we compare the specifications on paper, the Armata's firepower and armor protection are 30-40% superior to the Abrams. Regarding price, it's important to note that when purchasing a tank, there are additional costs for ammunition, maintenance facilities, and crew training. Because of this, the price of a tank will be much higher when considered individually," Murakhovski explained.

At the Victory Day celebrations on May 9, 2015, Russian President Vladimir Putin pledged that the Russian army would receive 2,300 new tanks under a program extending until 2020. However, that program was developed and budgeted for before the economic recession in Russia in 2014.

With the economy only growing at its current rate, Russia will find it difficult to purchase 2,300 Armata tanks, especially at a price that is not $3.75 million but nearly $5 million per unit.

Tuan Hung