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Despite Sanctions, Russian Defense Revenues Soaring

Despite Sanctions, Russian Defense Revenues Soaring

MOSCOW — Despite the pressure of Western sanctions, the sharp devaluation of the Russian ruble and runaway inflation at home, Russian defense firms featured in this year’s Defense News Top 100 ranking saw surging revenues as exports reached new highs and the government poured money into defense procurement.

Russia’s largest defense firm, air defense concern Almaz-Antey, saw revenues rise 10 percent to $9.2 billion, up $883.5 million over 2013. The Tactical Missile Corp., maker of air-to-air systems, saw the most drastic increase with a 48.6 percent rise in revenue to $2.8 billion in 2014.

Other Russian firms that made the ranking were the United Aircraft Corp., which owns Sukhoi, MiG and Irkut, and saw revenues rise 7 percent to $6.2 billion; Russian Helicopters, which finished at $3.96 billion, up 16 percent over 2013; and the United Engine-building Company, which saw a 25 percent increase over 2013 revenues to $3.3 billion in 2014.

Other firms that made the list were tank manufacturer Uralvagonzavod, which reported defense revenues of $1.54 billion in 2014 — a 1 percent rise — and electronics component manufacturer RTI, rising 15 percent to $947 million.

Source: Despite Sanctions, Russian Defense Revenues Soaring