The arms industry of Russia, also known as the defense industry of Russia is a strategically important sector and a large employer in the Russian Federation.[1] It employs approximately 3.5 million people nationwide and accounts for 20% of all manufacturing jobs in Russia. Total defense spending in Russia reached 7.5% of GDP in 2023.[2][3]
President Vladimir Putin considers the Syrian civil war to be a good platform for advertisement of the capabilities of Russian weapons capable of boosting Russia's military sales.[4][5] Russia accounted for 22% of global arms sales in 2013–17,[6] that figure dropped to 16% in 2018–22 (SIPRI's statistics).[7][8] In 2023, Russia was for the first time the third largest arms exporter, falling just behind France. Russian arms exports fell by 53% between 2014–18 and 2019–23. The number of countries purchasing major Russian arms dropped from 31 in 2019 to 12 in 2023. States in Asia and Oceania received 68% of total Russian arms exports in 2019–23, with India accounting for 34% and China for 21%.[9] In 2024, the Center for European Policy Analysis estimated that the number of workers in Russia's defense sector had dramatically decreased from approximately 10 million to 2 million, with this reduction not being offset by a corresponding increase in automation.[10] The Russian Industry and Trade Minister Anton Alikhanov claimed on 12 August 2024 that the Russian defense industry now employs about 3,8 million people.[11]
International sanctions after the Russian invasion of Ukraine in 2022 have been unsuccessful in countering Russian arms manufacturing. Russian military production has steadily grown, with missile production now exceeded pre-war levels. Russia currently manufactures more ammunition than all NATO nations combined, estimated at seven times the amount of the West. It has doubled its annual tank production and tripled its artillery and rocket production from pre-invasion numbers. Russia's production costs are drastically lower than those of competing nations, costing about 10 times less to create an artillery shell than comparable NATO ammunition.[12][13][14] As of 2024, Russia produces about 3 million artillery shells a year, nearly three times the quantity from the US and Europe.[15] The Russian defense industry has also heavily increased its production of armored vehicles and UAVs since 2023.[16][17] Russia's expanding arms production has been linked to its managed economy, with heavy state subsidization of unprofitable arms manufacturers prior to the war, in comparison with capitalist western nations with arms manufacturers geared towards maximizing shareholder profit.[2][15]