'Priority markets for Russian arms and military equipment in the BRICS countries' National Security / nota bene nbpublish.com
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Degtereva E.A., Sayapina K.V. Priority markets for Russian arms and military equipment in the BRICS countries

Published in journal "National Security / nota bene", 2016-3 in rubric "External aspects of national security", pages 390-400.

Resume: The subject of this article is the current status of the military technology cooperation between Russia and the BRICS partners. In the first part of the article, the authors define the main principles of interaction between the BRICS member-states, as well as explain mutual interests and goals of the partnership. In the second part, the authors examine the macroeconomic environment of each of the BRICS member-states (the structure of supply and demand, current achievements in the sector of arms industry, key partners and most promising sub-branches). The third part of the article presents an analysis of the military technology cooperation between Russia and the BRICS countries for the purpose of determination of the most promising in the long-term perspective market niches, mutually beneficial for both sides in the context of each country. The authors explore the currently used financial mechanisms and schemes, such as export crediting, government insurance of export operations, offset obligations, compensation payments, direct financial aid, and leasing scheme. Currently, there is an understanding that activation of cooperation in the arms area has to be one of the key elements of collaboration within the BRICS block. There is a significant potential for increased volume of trade of medium and high technology products within the framework of the union, realization of joint investment projects in highly scientific fields, as well as exchange of experience in the area of improving the institutional component of the innovation sphere. Practical implementation of this potential will minimize the negative influence of the Western sanctions upon the Russian economy, as well as ensure the sustainable innovative-technological development of the country.

Keywords: Arms technologies, Financial mechanisms, Export crediting, Offset obligations, Priority markets, Defense industry of Russia, National security, Armament, Military technology cooperation, BRICK block

DOI: 10.7256/2073-8560.2016.3.16938

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