Monday, October 22, 2007

Russian Defence Procurement in 2007

Russian Defence Procurement in 2007

Source: Centre for Analysis of Strategies and Technologies (CAST)

In 2007 Russia’s national defence procurement (NDP) amounted to 302.7 billion rubles (app. $11.6 billion), which marks an increase of 27.9% over 2006. Of this sum, $5.6 billion (47.9%) will be spent on purchases of new equipment, $2.3 billion (19.8%) on repairs and modernization, and $3.7 billion (32.2%) on R&D. Appropriations for purchases, repairs and modernization, and R&D grew by 25.5%, 23.6% and 34.4%, respectively.

NDP-2007 includes purchases of new equipment and the continuation of long-term programs begun in the late 1980s and early 1990s. The latter consists mostly of Navy projects, given their high cost and relatively long production cycles, when compared to the equipment of other services. Published data tends to support official statements that mass purchases of serially-produced items are planned, especially with regard to the Navy, though the scale of such purchases remains rather low.

Significant sums (41% of the sum, reserved for purchasing of the new equipment) have also been allocated to repairs and modernization. Given the Defence Ministry’s tradition of procuring new equipment for its strategic nuclear forces, most of funds assigned to repairs and modernization will be devoted to conventional weaponry. In 2007, the strategic forces will acquire 17 land and sea-based intercontinental ballistic missiles (ICBM) - a post-Soviet record, according to published information - finance the construction of three ballistic nuclear missile submarines and acquire new strategic bomber.