Russian Arms Export Revenue Dropped By Half Since Ukraine Invasion

The CEO of Rostec, one of Russia's largest defense conglomerates, has admitted that the country's revenue from arms exports has fallen by half since it invaded Ukraine in 2022.

Reasons for the drop include sanctions, need for arms by the Russian military in Ukraine, as well as the relatively poor performance of Russian weaponry versus the NATO arms they have come up against in Ukraine. JL

Leo Chiu reports in the Kyiv Post:

The CEO of Russian arms conglomerate Rostec admitted on Tuesday that arms export revenue for Moscow has halved since 2022, the year Moscow launched its full-scale invasion of Ukraine. Before 2022 Russia was second only to the US in global arms exports. The drop is attributed to “redirected resources for Ukraine, sanctions, inflation, and funding issues,” noting that foreign buyers – such as India – have also turned away from Russian arms. The shift also reflects concerns over logistical challenges since arms deals usually involve support and maintenance – now uncertain due to Russia’s stalled campaign nearing its fourth year.

The CEO of Russian arms conglomerate Rostec admitted on Tuesday that arms export revenue for Moscow has halved since 2022, the year Moscow launched its full-scale invasion of Ukraine.

Rostec CEO Sergey Chemezov attributed the drop not to Western sanctions but to the rising demand from the Russian military due to the war, according to Reuters.

The drop happened “due to the fact that we have had to supply most of our production to our army,” Chemezov told reporters.

 

According to Chemezov, sanctions affect operations but not overall output, and he is optimistic about the eventual recovery of Russian arms exports.

“I assure you that in the near future we will start to recover [with exports]. We have expanded our capacities and increased production, so we will be able not only to meet the needs of our military but also supply our partners,” he added.

 

While Western sanctions have ostensibly hurt Russia’s aviation industry by depriving local airlines of parts, reports suggest Moscow’s sanction-evasion efforts have had some success in building warplanes using Western electronics.

Reuters noted that before 2022 Russia was second only to the US in global arms exports. Citing Russian state media reports in November, the outlet said that Rostec’s export backlog exceeds $60 billion.

However, an analysis by the Jamestown Foundation in January noted a much more drastic drop in exports – a 91 percent drop between 2021 and 2024.

 

The think tank attributed the drop to “redirected resources for Ukraine, sanctions, inflation, and funding issues,” noting that foreign buyers – such as India – have also turned away from Russian arms.

The shift could reflect concerns over secondary sanctions or logistical challenges caused by Moscow’s war in Ukraine, since arms deals usually involve long-term support and maintenance – now uncertain due to Russia’s stalled campaign nearing its fourth year.

The report also suggests that Russia’s attempt to sell the export version of the Su-57 stealth fighter (NATO: Felon) – also showcased at the 2025 Dubai Airshow – has so far yielded no results.

 

Currently, Russia is the sole operator of the jet, with Chinese visitors mocking it at an air show, and India having withdrawn from the joint-development program in 2018 due to its poor performance.

However, Chemezov said Roctec sees a huge demand from some countries for the Su-57 without providing details, according to Reuters.