Russian Roulette: Russia's Economy in Putin's EraVaknin, Samuel
History
Russian Roulette: Russia's Economy in Putin's Era
Vaknin, Samuel
Putin, Vladimir Vladimirovich, 1952-; Russia (Federation) -- Politics and government -- 1991-
The war in Chechnya is another long standing pecuniary bonanza - and a
vested interest of many generals. Senior Russian Interior Ministry
field commanders trade (often in partnership with Chechen "rebels") in
stolen petroleum products, food, and munitions.
Putin is trying to reverse these pernicious trends by enlisting the
(rank and file) army (one of his natural constituencies) in his battles
against secessionist Chechens, influential oligarchs, venal governors,
and bureaucrats beyond redemption.
As well as the army, the defense industry - with its 2 million
employees - is also being brutally disabused of its
centralist-nationalistic ideals.
Orders placed with Russia's defense manufacturers by the destitute
Russian armed forces are down to a trickle. Though the procurement
budget was increased by 50% last year, to c. $2.2 billion (or 4% of the
USA's) and further increased this year to 79 billion rubles ($2.7
billion) - whatever money is available goes towards R&D, arms
modernization, and maintaining the inflated nuclear arsenal and the
personal gear of front line soldiers in the interminable Chechen war.
The Russian daily "Kommersant" quotes Former Armed Forces weapons
chief, General Anatoly Sitnov, as claiming that $16 billion should be
allocated for arms purchases if all the existing needs are to be
satisfied.
Having lost their major domestic client (defense constituted 75% of
Russian industrial production at one time) - exports of Russian arms
have soared to more than $4.4 billion annually (not including
"sensitive" materiel). Old markets in the likes of Iran, Iraq, Syria,
Algeria, Eritrea, Ethiopia, China, India, and Libya have revived.
Decision makers in Latin America and East Asia (including Malaysia and
Vietnam) are being avidly courted. Bribes change hands, off-shore
accounts are open and shut, export proceeds mysteriously evaporate.
Many a Russian are wealthier due to this export cornucopia.
The reputation of Russia's weapons manufacturers is dismal (no spare
parts, after sales service, maintenance, or quality control). But
Russian weapons (often Cold War surplus) come cheap and the list of
Russian firms and institutions blacklisted by the USA for selling
weapons (from handguns to missile equipped destroyers) to "rogue
states" grows by the day.
Less than one quarter of 2500 defense-related firms are subject to (the
amorphous and inapt) Russian Federal supervision. Gradually, Russia's
most advanced weaponry is being made available through these outfits.
Public-domain text, read in full here on John Shaqi.
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