The Russian defence market is set to expand considerably over the next decade, with the Russian authorities seeking to modernise and improve the capabilities of the Russian armed forces, and to cement Russia's place as a leading military nation.
The new market study on ASDReports has determined that the value of the Russian defence market in 2010 was $47.10bn, and despite evident challenges existing within the market, we expect the Russian defence market to witness growth in multiple areas.
Russian defence spending is an important dynamic in terms of world military spending and defence markets. Russia engages with a plethora of countries and transnational organisations concerning defence matters, including dialogue with the EU, work with the UN Security Council, and partnering emerging Asian nations. Russia's historical strategic threats include China and Eastern Europe, and the 2008 Georgian crisis serves to emphasise this reality.
Russia's defence spending ambitions are characterised by the Russian State Armaments Programme, which aims to replace and renew a substantial proportion of the country's defensive capabilities.
In addition, President Medvedev has placed economic liberalisation and modernisation at the forefront of his agenda since coming into office, and has acted swiftly in an attempt to correct spending inefficiencies that have plagued Russian defence advancement in recent years.
These trends will encourage investors, who have witnessed increased opportunities within the Russian defence market linked to joint ventures and international collaboration since the turn of the century.