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Subject
Russia's arms industry.
Significance
Russia's defence industry plays a dominant role in the economy, and its status has been enhanced by operations in Syria seen as a political as well as military triumph. Foreign policy and arms exports are closely interlinked. As energy revenues fall, arms sales are becoming a key income source for the state. The industry is particularly unsuited to play its assigned role of economic driving force due to over-consolidation, inefficiencies and politics.
Impacts
Russia will use arms sales to cement alliances, and vice versa.
Continual delays and cost overruns are likely, especially for equipment based on new technologies.
Monopolistic structures will slow innovation.
Keywords:
Russia,
RUCIS,
Syria,
economy,
industry,
international relations,
politics,
aerospace,
arms,
defence,
fiscal,
foreign policy,
government,
manufacturing,
military,
civil war,
corporate,
shipbuilding,
technology
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2016
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