Russia, the second largest arms exporter globally, is facing challenges in its defense industry due to Western sanctions and difficulties in acquiring crucial parts. This has led to delays in weapon deliveries, raising concerns about the quality and reliability of Russian arms. African countries, a significant market for Russian weapons, are now exploring alternative options. The United States has overtaken Russia as the leading arms supplier, with Russia’s market share declining. The decline in sales and the underwhelming performance of Russian weapons in the Ukraine conflict have negative implications for Russia’s defense industry and its ability to develop new technologies. The USA appears to be a more promising investment in the arms market, with increasing market share and a strong reputation.
The Russian military industrial complex
African countries, such as Algeria, Egypt, Ethiopia, Nigeria, and Mali, heavily rely on weapons imports from Russia. However, the trade could be in jeopardy as U.S. officials believe Russian deliveries will be delayed due to the country's decreased production capacity. This situation has prompted African countries to explore other options in the global arms market.
Experts in the business of war
After analyzing a commodity super cycle reveals the historical trends and cycles in commodity prices over the past 125 years, Zoltan Posar predicts that this recession will continue to have extremely high rates of consumer price inflation, rather the deflation that many predict. He describes a broken price signal and geopolitical situations that contribute to this expectation
Global Arms Buyers
African countries, such as Algeria, Egypt, Ethiopia, Nigeria, and Mali, heavily rely on weapons imports from Russia. However, the trade could be in jeopardy as U.S. officials believe Russian deliveries will be delayed due to the country's decreased production capacity. This situation has prompted African countries to explore other options in the global arms market.
Russia's Biggest Customers
A breakdown of the revenue earned by country from Russian arms sales between 2016 and 2020 reveals the following: India was Russia's biggest customer, buying around 6.6 billion of equipment; China came in second with 5.1 billion; Algeria was third at 4.2 billion; Vietnam was fifth at 3.3 billion. Other countries on the list include Kazakhstan, Iraq, Belarus, Angola, Iran, Armenia, Turkey, Bangladesh, Syria, Serbia, and Pakistan.
The decline in Russia’s arms exports and delays in production have raised concerns about the quality and competitiveness of Russian weapons, which has begun to expand into a larger economic challenge for the entire country. The significant increases to military spend have been compounded by the reduction in demand for Russian weapons in making warfare unprofitable and potentially destabilizing for Vladamir Putin and the Russian military. Joe Blog’s explains many of these nuances, along with other international variables and players involved with the international arms trade. He also offers his own insight on economic trends that are currently in flux within the global arms trade, specifically as it relates to Russian and US weapon sales to African countries.
Dig deeper into the people, places, and self-interests from this video that are pushing the world economic system to the brink:
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