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Russia announces deepest defence spending cuts since 1990s

Discussion in 'Europe & Russia' started by BMD, Mar 19, 2017.

  1. BMD

    BMD Lt. Colonel ELITE MEMBER

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    http://www.janes.com/article/68766/russia-announces-deepest-defence-budget-cuts-since-1990s

    Russia announces deepest defence budget cuts since 1990s
    Craig Caffrey, London - IHS Jane's Defence Weekly
    16 March 2017


    Figures released by the Russian Federal Treasury have confirmed that Russia's defence budget has been cut by 25.5% for 2017, falling from RUB3.8 trillion (USD65.4 billion) to RUB2.8 trillion.

    The reduction represents the largest cut to military expenditure in the country since the early 1990s.

    The reduction follows an extended period of large increases to Russian defence spending with growth having achieved an average rate of 19.8% a year since 2011 in nominal terms. Despite the cut, the 2017 budget will remain about 14.4% higher than the level of defence spending seen in 2014 in nominal terms.

    The Russian government initially outlined plans to reduce defence expenditure in the draft of the three year budget for 2017 to 2019 released in October 2016.
     
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  2. lca-fan

    lca-fan Lieutenant FULL MEMBER

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    Finally, US sanctions are coming to haunt Russia which is also aggravated by lower crude oil prices.

    Now this could also have some repercussion on India too. PAKFA/FGFA could be delayed, ongoing weapons orders to can be delayed and worst if Russian economy goes turtle ala Soviet Union our payments and weapons could be stuck and would need huge time and monetary push to get out of that mess, so we should tread carefully. We should deal with Russia carefully in near future.

    As for world a failed Russia under Putin could be very dangerous as compared to Soviet Union under Gorbachev and could cause world war 3.
     
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  3. BMD

    BMD Lt. Colonel ELITE MEMBER

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    This is telling too.

    http://www.ifswf.org/sites/default/files/Publications/SWFs April 2016.pdf

     
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  4. BMD

    BMD Lt. Colonel ELITE MEMBER

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    I agree, this sanctions crap needs to end.
     
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  5. AbRaj

    AbRaj Captain FULL MEMBER

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    Russia has enough allies to sail them through the though water.
    So chilax guyes

    Iran and NoKo are surviving sanctions from almost eternity now:mrgreen:
    Russia is entirely different beast altogether.
     
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  6. BMD

    BMD Lt. Colonel ELITE MEMBER

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    Iran made a deal though and Kim Jong Un doesn't give a **** about his people or his country's economy, so it's no loss to him either way.
     
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  7. AbRaj

    AbRaj Captain FULL MEMBER

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    True and true. But Russia is undoubtedly paying the price of her (mis)adventure but is definitely no pushover.
     
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  8. ReddyMan

    ReddyMan FULL MEMBER

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    India needs to be aggressive and take full advantage of Russia's economic realities.

    We can see this already with full ToT demands for PAK-FA project. Hope this continues under new MoD.
     
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  9. Ripcord322

    Ripcord322 Lieutenant FULL MEMBER

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    It is unlikely that they will give us a Full ToT, because think about it...PAK-FA/FGFA is the only platform on the planet, which will give us a certain degree of technical and political freedom.

    The Russians know that we don't have an alternative, all the other platforms come with significant technical and political strings attached to it...

    A we need a stealth platform immediately, the Chinese already have one...The Pakistanis might as well get one from the Chinese....


    There is no way, the Russians will give us a complete ToT, No way.
     
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  10. Abingdonboy

    Abingdonboy Captain Technical Analyst

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    Russia is going to try and fleece India even more then, wait for all defence deals with Russia to suddenly get more expensive POST contract signing ie spares and support are going to go through the roof if there isn't an established support agreement with fixed rates (which in the case of Russia there aren't many of). It is also going to cost more for India if they want to get projects like the FGFA and MTA (dead) off the ground.

    India is already moving away from Russia largely but this news is worrying because of the strategic agreements India has with Russia; SSN lease(s) and the FGFA. For the FGFA the Russians are going to seriously stall their own commitment (PAK-FA) and demand India cough up more (with little concessions on their part vis a vis ToT), a project already delayed is going to get into even hotter water.

    India seriously needs to ask itself whether it is worth throwing vast sums down this sinkhole for much longer, at the very least no NEW long term defence deals should be signed with the Russians, they will never regain their status and are in terminal decline now. @Ankit Kumar 001 @Gessler @PARIKRAMA @nair @Agent_47 @Hellfire @randomradio @SrNair @Sathya @HariPrasad @bharathp @Nilgiri
     
    Last edited: Mar 20, 2017
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  11. Inactive

    Inactive Guest


    I would have an opposite take on this. Recall that in 1990s, Indian orders ensured employment for a large number of workers who would otherwise have had to be laid off?

    Similarly, a shrinking budget and economic difficulties may allow India to underwrite a number of programs. The flips side? So can the Chinese and Pakistanis (the latter still are in their grass mindset).

    The bigger flip side? Russians can 'squeeze' India :)
     
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  12. ReddyMan

    ReddyMan FULL MEMBER

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    You are missing the point. It is a bargaining tactic, of course we are not getting full ToT. But for once it seems we are leveraging the Russians to get a better deal and not the other way around. Russians want same deal as Su-30MKI, but MoD is pushing for something much better. To me this is indicative of the changing positions of Russia and India.

    For once we have more cards to play than them. I can see the effect of this realization seeping into their media and actions, attempting to arm-twist via pakistani. It is evidently not working.
     
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  13. Abingdonboy

    Abingdonboy Captain Technical Analyst

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    To make up the shortfall, India is going to have to pump in a LOT of hard cash into the Russian MIC but frankly I'm not sure it is worth it. Does India really get its money worth from Russia? I'm not convinced. For the ammount invested into Russian MIC post USSR collapse, India has very little to show for it and it certainly hasn't helped the Indian MIC to any meaningful degree.

    Let the Chinese and pakistani (lol, yeah right!) take over. The Russians may be desperate but even then they won't risk losing the little they have left (IPRs) to the Chinese- that will fully kill off the entire Russian MIC.

    Is India's limited defence budget an aid program for foreign workers? For every 1 dollar of that budget spent in India you'll see a 5-6 fold return within a decade.
     
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  14. Abingdonboy

    Abingdonboy Captain Technical Analyst

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    Spot on and if the Russians don't play ball I fully support walking away from them once and for all.

    If they are stupid enough to not appreciate the lifeline India is offering then they should be left to their fate.
     
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  15. Ripcord322

    Ripcord322 Lieutenant FULL MEMBER

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    Hmm...You are right, this administration surely has a rejuvenated approach and a certain 'lust' (for lack of a better word) for ToTs, as they should.

    I sincerely hope their plans succeed and we get ToT to a logical, healthy, significant and certain 'complete' level.

    But, That said, I personally won't underestimate the Russian Cunning, and frankly brother, I am still septic about us getting any ToT, except perhaps the MKI kind.


    Anyway I hope I am wrong and we get the deal we want.

    :)
     
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