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Main War — Intelligence: Due to inflation and sanctions in the Russian Federation, there were significant problems with the production of weapons

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Intelligence: Due to inflation and sanctions in the Russian Federation, there were significant problems with the production of weapons

07 Apr, 2022
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Intelligence: Due to inflation and sanctions in the Russian Federation, there were significant problems with the production of weapons

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Photo: A Ukrainian Territorial Defence Forces member holds an NLAW anti-tank weapon, in the outskirts of Kyiv, Ukraine, on Wednesday, March 9, 2022. (AP/Efrem Lukatsky)

Russian companies have faced severe problems in fulfilling military orders. Inflation, due to the imposition of sanctions, "eats" the funds provided for the production of weapons. And additional funds in the budget of the Russian Federation are absent.

It became known from the received report of the device of the government of the Russian Federation concerning problematic questions during the performance of contracts of the state order by the enterprises of a defense-industrial complex.

It follows from the text that in order to avoid an increase in prices fixed by the state order, the Russian government allowed concluding contracts with a single supplier. However, this did not lead to the expected result. The work cost still increased due to a significant increase in prices for materials and components. And the insistence of the Ministry of Defense of the Russian Federation on fixing of the prices leads only to losses for the certain "single executor" of the military order.

Currently, the fulfillment of the order of the Ministry of Defense of the Russian Federation is in question due to lack of funds and inconsistencies between the government and manufacturers. This situation is a direct consequence of the international sanctions imposed on Russia in general and its military-industrial complex in particular.


The Odessa Journal

The Odessa Journal

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