Military-industrial sector production in 2012

On April 3, the Ministry of Industry and Trade of Russia delayed for two months against the previous year its report on the industrial production index in 2012, which stood at 102.6% and statistics by industry, including the military-industrial sector.

According to the latest information, the military-industrial sector output increased by 6.4% against a decline in civilian production in the shipbuilding industry (by 38.1%), aircraft industry (by 7.2%), and rocket and space industry over the year. Civilian production increased by 7% in conventional weapons manufacturing and 2% in electronic. Last year total military-industrial sector output gained 4.5% as civilian production decreased in aircraft and shipbuilding industries. Nevertheless, production of aircrafts increased by 1.5 times, from 13 to 20, in 2012, of which short-haul passenger aircrafts Suhkoi SuperJet-100 accounted for the most.

Though the current total output growth against the reduction in civilian production in the key industries would allow a substantial growth in military production to be expected, the actual performance results of the defense procurement in 2012, in what one might call ‘units’, speak against it. For example, our shipbuilding industry failed to manufacture two nuclear submarines, a frigate, and two corvettes for the Russian Federation Navy.

In this light the Russian Government’s hopes to reach a 15% gain in the military-industrial sector production seems to be too optimistic for the current year. 

Zatsepin V. B. – Ph.D. in Military Science, Head of Economics of the Military-Industrial Sector Department