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British Intelligence: sanctions against Russia continue to disrupt the supply of key resources for the Russian defense industry

01 Apr, 2024
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British Intelligence: sanctions against Russia continue to disrupt the supply of key resources for the Russian defense industry

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World sanctions against Russia continue to disrupt the supply of key resources for the Russian defense industry, affecting the production of weapons by Russia.

This is reported in an analytical report by the UK Ministry of Defense on the X social network.

As noted, Russia's isolation restricts the number of countries it can trade with directly, which may increase the time and cost of purchasing goods that Russia could previously buy freely. In particular, analysts refer to data from the Institute for Economic Development and the Bank of Finland, which indicate that third countries impose price premiums of over 60% for the export of certain sanctioned goods to Russia.

"While Russia has increased production of key munitions most heavily used in Ukraine, such as artillery shells, the impact of sanctions is highly likely greatest on Russia's more advanced and complex weapon systems. These systems in production and development almost certainly have an increased reliance on foreign components and technology," the report says.

Analysts believe that sanctions may continue to disrupt both demand and supply for Russian arms exports, as well as significantly complicating payment mechanisms to Russia.

"This has almost certainly contributed to a significant decline in Russia's arms exports and increased delivery delays, including to some of its most important remaining arms customers," the analysts write.

They refer to figures from the Stockholm International Peace Research Institute, which show that Russia's share in global arms trade fell to 11% in the period from 2019 to 2023, compared to 21% in the period from 2014 to 2018.

 

The Odessa Journal

The Odessa Journal

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