Russia finding market for weapons

Russia's still vast military-industrial complex has become dependent on orders from hard-currency markets abroad

By CNN's Matthew Chance

MOSCOW, Russia (CNN) -- Some of Russia's most advanced weapons are for sale: Warplanes, tanks, helicopter gunships -- even nuclear submarines that can be adapted to carry long-range missiles.

Critics accuse the Kremlin of selling to anyone willing to pay. Military analysts say the reason isn't hard to figure.

"There is only one country which is 100 percent responsible in its arms trade. This is the United States, because for the United States the arms trade is about foreign policy, not economy," says analyst Ruslan Pukhov.

"For other countries, like Russia, like France, like Israel, the arms trade is first of all about money benefit."

VIDEO Their own government unable to afford major purchases, Russian arms makers turn to client nations. CNN's Matthew Chance reports (February 8) Play video (QuickTime, Real or Windows Media)

In fact, Russia is so short on cash it can't even afford to buy the weapons it produces.

Russia's still vast military-industrial complex -- the once-mighty producer of battlefield hardware -- has become dependent on orders from hard-currency markets abroad.

Export deals, like the latest multi-billion-dollar signing with India, help keep the Soviet-era weapons factories open. But they also yield what Russia sees as a major strategic benefit for itself: a chance to practice weapons production.

"We are losing constantly the expertise to construct such unique weaponry like an aircraft carrier," says Pukhov.

"Having money from the Indians, this is not just a gain for the whole naval industry, but it is also the possibility to do some research and development and to keep the expertise."

Expertise, analysts say, could be used to build a new generation of Russian weapons for the country's own military should it ever need them, or simply to keep pace with Western technological advances in an increasingly competitive global weapons market.

Russia's arms industry is ranked fourth in terms of sales behind the United States, Britain and France. It is significant, but only a fraction of the billions of dollars of exports delivered by the Soviet Union in the 1980s.

Still, Kremlin officials say the past 12 months have been the most lucrative for the business in a decade. And regardless of international concerns, officials say they're being urged to find more weapons markets abroad.