British intelligence: russia overpays 60% due to sanctions against the military industry
Kyiv • UNN
Due to the sanctions, third countries charge a price premium of more than 60% for the export of some sanctioned goods to Russia, disrupting the supply and demand balance for Russian arms exports and complicating payment mechanisms, leading to a significant reduction in Russian arms exports.
Sanctions will continue to disrupt both the supply and demand for Russian arms exports, as well as significantly complicate payment mechanisms to Russia. This was reported by the Ministry of Defense of the United Kingdom, UNN reports .
Details
As noted in the report, a study by the Bank of Finland's Institute of Emerging Economies shows that third countries charge a price premium of more than 60% for exports of certain sanctioned goods to Russia.
According to British intelligence, although Russia has increased production of key munitions most commonly used in Ukraine, such as artillery shells, sanctions are likely to affect Russia's more advanced and sophisticated weapons systems. These systems will almost certainly rely increasingly on foreign components and technologies for production and development.
In addition, the sanctions will continue to disrupt both the supply and demand for Russian arms exports, as well as significantly complicate payment mechanisms to Russia. This has almost certainly contributed to a significant reduction in Russian arms exports and increased delays in deliveries, including to some of its most important remaining arms customers,
According to the Stockholm International Peace Research Institute, Russia's share of the global arms trade fell to 11% between 2019 and 2023, down from 21% between 2014 and 2018.
Recall
British intelligence has analyzed Russia's ability to form and equip two new armies consisting of 14 divisions and 16 brigades announced by Russian Defense Minister Sergei Shoigu, but doubts their effectiveness due to limited training, outdated equipment and infrastructure problems.
