Russia Lagging Behind U.S In Arms Sales Growth

The U.S Defense Security Cooperation Agency has earned $65 billion in sales of equipment and services to allies in 2012 compared with last year’s $35 billion. The DSCA sales have clearly outperformed Russia which only managed to bring in deals worth $14 billion in 2012. Unlike the U.S, Russia earned just $500 million compared with 2011. Russia has been losing out on contacts due to low-reliability and high life-cycle costs in various competitions including the Indian MMRCA and heavy-lift helicopter deals which it lost to France’s Dassault and Boeing respectively. India, a leading Russian weapons buyer, has been favoring American and European manufacturers due to delays in delivery and its dissatisfaction with maintenance of equipment. Russia President Vladimir Putin has called on his country’s defense industry to expand and build its position in the market for the maintenance and modernization of military equipment. The country’s defense industry also sealed export contracts worth another $15 billion in 2012, Putin said. The Russian Federal Service for Military and Technical Cooperation forecasted arms exports in 2012 would stand at $13.5 billion. Besides India, Russia relies on Vietnam, Myanmar, Venezuela and countries of the Middle East for its weapons sales.