Rosvooruzheniye reports high defence sales for the first five months of 1999

Published: 6/17/1999

On June 11th 1999, the state-run weapons-export agency, Rosvooruzheniye, reported that Russia"s revenues from defence equipment sales in January-May 1999 totalled $1.08 billion: the highest five-month figure for the past five years. According to Rosvooruzheniye, it delivered arms worth $1.03 billion to foreign customers, earning some $1.08 billion in revenues. The reports did not account for the discrepancy in the figures, but some revenues were apparently payments for previous supplies or for yet-to-be-delivered weapons. Mr Grigory Rapota, a director of Rosvooruzheniye, claimed recently that Russian arms sales in 1998 totalled $2.3 billion, and stated that he expects sales of around $9 billion over the next five years. However, according to a study published on June 11th 1999, by the Academy of Sciences" Institute for Social and Economic Problems of the Population, Russia needs $10 billion to $15 billion over the next three years to reform its defence industry and will have to close 1,100-1,200 of its plants. The closures would result in job losses of 500,000 - 600,000.

Article ID: 599