Russian Arms Sales and Sanctions Compliance

The First Plant for the Production of Drones Was Created in Russia (В России создали первый завод по производству беспилотников)

December 22, 2021 | TASS

Kronshtadt created a center for the production of UAVs in Dubne, near Moscow. The factory will produce both aircraft and helicopter-type UAVs. Construction of the facility lasted from April to December. This is the first aviation plant to be constructed in post-Soviet Russia.

Government of the Russian Federation Gave around 45 Billion Ruble for the Creation of the PD-35 Aircraft Engine (Правительство РФ выделило около 45 млрд руб. на создание авиадвигателя ПД-35)

December 18, 2021 | Interfax

Russian Prime Minister Mikhail Mishustin signed an order providing 45 billion rubles from the reserve fund for the development and creation of the PD-35 aircraft engine. The PD-35 is a heavy engine project which designers plan to use on the Russian-Chinese CR929 long haul aircraft. The CR929 is a joint project between Russia's United Aircraft Corporation and the Chinese company COMAC. The certification of the first Russian PD-35 is planned for 2025.

The Head of the FSMTC Said that SIPRI's Methodology for Arms Market Analysis Does Not Reflect the Real Picture (Глава ФСВТС заявил, что методика анализа рынка оружия СИПРИ не отражает реальную картину)

December 06, 2021 | TASS

The director of the Federal Service for Military-Technical Cooperation Dmitry Shugaev commented on the Stockholm International Peace Research Institute (SIPRI) report released on Monday, according to which the sales of Russian weapons manufacturers are falling. He said that the methodology used by the SIPRI to analyze the global arms market did not reflect reality and noted four problems with the methodology. First, it relies on a trend indicator instead of using price for each product individually, which cannot be used to assess the volume of exports. Second, SIPRI uses only open-source data, which is limited. Third, they do not account for spare parts and maintenance. And fourth, their assessment is politically biased.

Terras Affirms Importance of Cooperation With Russia in Defense Industries

November 30, 2021 | Egypt Today

Abdel Moneim Al-Tarras, Chairman of the Arab Organization for Industrialization, issued a statement during EDEX 2021 highlighting "the importance of bolstering cooperation with Russia to boost local manufacturing and transfer modern technology in defense industries." He met with Rosoboronexport officials during the expo.

Impact of the U.S. and Allied Sanction Regimes on Russian Arms Sales

November 26, 2021 | RAND Corporation

This report from the RAND Corporation examines Russian arms exports and the impact of sanctions designed to discourage third country purchases and raise the cost of future Russian malign interference in other nation-states. The article notes that "U.S. diplomatic efforts buttressed by the prospect of third-party sanctions" have created a chilling effect on Russian arms sales and that there are several factors for consideration when engaging in these diplomatic outreaches.

Turkey’s Quest to Acquire Russian Fighter Jets Put on Ice Over Cost Concerns

December 22, 2021 | Nordic Monitor

According to the article, Turkey's efforts to purchase Russian aircraft in place of current U.S. aircraft has been put on hold "after a confidential internal study warned that a shift from NATO systems would come at a huge cost for Turkey." In an interview with Ismail Demir, head of the Turkey's Presidency of the Defense Industry (SSB), Demir noted that there would be negative side effects and a cost if Turkey were to replace Russian aircraft with the current U.S. aircraft that the country uses.

1st S-400 Squadron Deployed, To Tackle Pak, China Aerial Threats: Report

December 21, 2021 | NDTV

According to government sources, India will place the first S-400 squadron in the Punjab sector, which "would be capable of taking care of aerial threats from both Pakistan and China." India has already begun to receive parts of the Russian S-400 system and the first squadron is expected be operational within the next several weeks.

Russian Orion-E Drone Was Shortlisted for Malaysian Tender (Российский дрон "Орион-Э" попал в шорт-лист тендера Малайзии)

December 16, 2021 | RIA Novosti

Dmitrii Shugaev, the director of the Federal Service for Military-Technical Cooperation, reported that the Russian Orion-E reconnaissance strike drone was shortlisted for a tender by the Malaysian Ministry of Defense. The tender for the purchase of drones by the Malaysian Armed Forces was held from August 2020 to November 2020.

Philippine Air Force Purchased Russian Mi-171 Helicopters (ВВС Филиппин приобрели российские вертолеты Ми-171)

December 10, 2021 | TsAMTO

According to the Philippine Secretary of National Defense Delfin Lorenzana, in the near future, an initial payment will be made for the purchase of Russian Mi-171 helicopters for the Air Force. Despite the acquisition of Sikorsky S-70i multipurpose helicopters, the Philippine Department of National Defense also decided to buy Russian helicopters. The Department of Budget and Management approved the purchase in October 2020. It was expected that the contract would be signed shortly, although it still remains unclear how the Philippines plans to circumvent US sanctions under the Countering America's Adversaries Through Sanctions Act.

India to Push Back on $1 Billion Russian Helicopter Deal

December 03, 2021 | Bloomberg

This Bloomberg report states India "won’t go ahead with building Russian helicopters locally under a $1 billion deal." According to officials, "the Kamov project had very few backers within a government that was keen on boosting the local defense manufacturing" and "helicopters with coaxial rotors like the Kamov are costlier to maintain in comparison to the traditional ones."

Russia Transferred Four Mi-171 Military Transport Helicopters to Mali (Россия передала Мали четыре военно-транспортных вертолета Ми-171)

November 29, 2021 | TsAMTO

On November 26, the official ceremony of transferring four Mi-171 Russian military transport helicopters to the Armed Forces of the Republic of Mali took place. Earlier, Foreign Minister Abdoulay Diop said that Mali needed Russian aircraft and training for personnel.

Saudi Arabia Has No Interest in the S-400, Says Russian Industry Official

November 16, 2021 | Defense News

According to a Rostec executive, "Saudi Arabia is no longer considering purchasing the Russian S-400 air defense system following the kingdom’s deal for an American alternative." He also claimed "Arab countries became more interested in Russian military technology following the U.S. reaction to Turkey’s purchase," and that, for Turkey, "the second batch will include transferring technology." The article notes concerns in the Senate about sanctions against India.

It's Not About the Sukhoi Su-35, It Turns Out That the Arrival of the US Foreign Minister to Indonesia to Discuss This (Bukan Soal Sukhoi Su-35, Ternyata Kedatangan Menlu AS ke Indonesia Bahas Tentang Hal Ini)

December 14, 2021 | Zona Jakarta

This report claims that conflict between the United States and Russia has made it difficult for Indonesia to acquire the Su-35 fighter. Indonesia is reportedly very concerned about the possible impacts that CAATSA sanctions could have.

S-400 Deal: India, Russia Yet to Sort Out One Major Issue Despite Its Timely Delivery – Payments to Moscow

December 08, 2021 | EurAsian Times

This article on India's S-400 acquisition highlights that "paying in US dollars...is risky because of the threat of the US sanctions under CATSA [sic]." Russia has reportedly "been pressing India to opt for the traditional trading between the two countries through the 'rupee-rouble transfer' route," but it is unclear if such a mechanism will expand to all arms sales to India.

U.S. Senators Introduce Amendment Supporting CAATSA Sanctions Waiver for India

November 09, 2021 | The Hindu

Three Republican Senators have introduced an amendment to the FY22 National Defense Authorization Act to make it more challenging for the US to impose CAATSA sanctions on U.S Quad partner countries (India, Australia, and Japan) for purchasing Russian arms. The new legislation, Circumspectly Reducing Unintended Consequences Impairing Alliances and Leadership (CRUCIAL) would require that president to certify with "appropriate congressional committees" that a Quad member is not cooperating on “security matters critical to the United States strategic interests” before CAATSA sanctions could be imposed. The article states that legislation essentially would require the administration to indicate that the Quad is dysfunctional, though it is not clear whether the amendment will pass.