Russia’s arms industry shortage of funds by the financial crisis (Figure)
Data Figure: Russian exports of Malaysian Air Force Su-30MKM fighter
China Daily AP: The head of Russia’s defense industry, Deputy Prime Minister Sergei Ivanov said on November 11, by the financial crisis the impact of Russia’s arms industry is also facing shortage of funds, the bank needs the help of state support.
According to British media reports, Russia’s arms export industry, one of the most profitable goods, Russia’s arms exports last year reached 70 billion U.S. dollars. As the Russian defense spending would increase, arms manufacturers benefited from. But Ivanov said, liquidity problems have caused some of the arms manufacturers can not perform the contract or pay staff wages.
Ivanov day of talks with defense officials, said: “The global financial crisis hit the Department of Defense several manufacturers and many manufacturers are facing cash flow shortages, which affect weapons production schedule.” He said the Russian government has proposed to the Defense Department state-controlled banks to provide preferential loans to arms manufacturers.
(Global Online: Han Jung Hua)