Russia's defense industry can't match the US

Stratfor Worldview:
Russia's defense industry is face to face with a major foe, but it's not a foreign military power. The Kremlin has been striving to modernize all branches of the Russian military, but the country's defense industry is struggling thanks to decreasing volumes of orders, difficulties in attracting high-skilled talent and limits to its technological capabilities. According to recent figures, the performance of Russia's aerospace sector is declining precipitously. In 2018, for instance, Russian aircraft and spacecraft makers produced 13.5 percent less than in 2017. And there's been no letup in 2019 either: In the first two months of the year, aerospace output plummeted 48 percent year on year.

The decline in Russia's defense output raises concerns about the competitive strength of Russia's defense industry in general, whose health is critical if the country is to project itself as a military power in the longer term. Russian Deputy Prime Minister Yuri Borisov attributed the reduction in output to a slowdown of orders for military systems, but projections suggest the slowdown is not just a short-term fluctuation; in fact, it's expected to become even worse in the future. The downturn in oil prices has taken a bite out of Russia's bottom line, squeezing spending for the military — all at a time when the country's arms manufacturers have lost their competitive edge in the global arms market. Together, these factors ensure that Russia's defense industry will struggle to get out of its funk.

This dire picture stands in stark contrast to Russia's frequent presentation of sensational new platforms. In reality, however, just a few of the big-ticket weapon systems — such as the T-14 main battle tank or the Su-57 fighter aircraft — find buyers, as the rest remain mere prototypes. Russia has prioritized some hardware, such as the Sarmat intercontinental ballistic missile, due to their strategic relevance to the country's overall military posture, but Moscow has failed to fully develop other programs or only introduced them on a limited scale.
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There is more.

This is consistent with my prior analysis of Russia's arms effort.  They like to produce showy new weapons, but lack the resources to put them in production.  During the war in Syria they tried to showcase a stealth fighter but quickly sent it back home and it has never gone into production.  Their aircraft carrier operations during the Syrian operation were a disaster.  It was poorly designed and the planes could not take off fully fueled and fully armed.  Certainly, the lack of oil revenue has crimped their ability to expand production, but they have also lost the export market they once had.

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