Russian tanks parade on Red Square ahead of Russia’s annual “Victory Day” parade in May 2019. Russia’s war in Ukraine has not led to a boom in military manufacturing, as many predicted; the cutoff of foreign sales may have even contributed to the industry’s downturn. (Shutterstock/Free Wind 2014)

Russia’s Arms Industry Is in Deep Trouble

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Despite—or, paradoxically, because of—the high demands imposed by the Ukraine conflict, a range of Russian arms manufacturers have laid off workers and curbed production output.

It is axiomatic that war is good for business—and this is doubly true if one’s business is defense. During major wars, military contractors almost inevitably see their respective stock values go up as governments place large orders and profits soar. Active combat also creates an urgent need to replace the spent weapons and equipment as stockpiles are replenished. Whether the United States has entered President Donald Trump’s promised “golden age” is far from clear, but it has been a “golden age” indeed for American aerospace and defense contractors energized at the prospect of a $1.5 trillion defense budget for fiscal year 2027 (FY27). Even if Congress vetoes that idea, the American firms will still see huge paydays ahead as the United States rearms and weapon caches are built up........

© The National Interest