Military production

Analyst: Russian Industry Faces Challenges Unique to 'Putin's Russia'

The fall of the Soviet Union rocked Russia’s inherited defense industry to the core. With a government no longer able to bankroll massive procurements, defense industry enterprises were forced to transform into export-oriented businesses or die. This pivot has over the last two decades turned post-Soviet Russia into the world’s second largest arms exporter, only steps behind the United States. In 2014, Russian exports hit new highs at $13.2 billion according to state arms export agency Rosobornexport.