Third countries impose markups of up to 60% on the export of some sanctioned goods to Russia, disrupting the balance of supply and demand for Russian arms exports and complicating payment mechanisms, resulting in a significant decrease in Russian arms exports, according to the latest report by the British Ministry of Defence.
Sanctions will continue to disrupt both supply and demand for Russian arms exports and significantly complicate payment mechanisms to Russia, British intelligence has concluded.
As stated in the report of the British Ministry of Defence, the study conducted by the Institute of Development Economics of the Bank of Finland shows that third countries impose a markup of more than 60% on the export of some goods subject to sanctions to Russia.
According to British intelligence, while Russia has increased production of key munitions most commonly used in Ukraine, such as artillery rounds, the sanctions are likely to affect Russia’s more advanced and sophisticated weapons systems. The production and development of these systems will almost certainly increasingly use foreign parts and technology.
Third-country mark-ups on sanctioned goods and the resulting impact have almost certainly contributed to a significant decline in Russian arms exports and increasing delays in deliveries, including to some of the remaining major arms customers, Britain’s Ministry of Defense said.
According to the Stockholm International Peace Research Institute, Russia’s share of the global arms trade fell to 11% between 2019 and 2023, compared to 21% between 2014 and 2018.
British intelligence has analyzed Russia’s ability to build and equip two new armies of 14 divisions and 16 brigades announced by Russian Defense Minister Sergei Shoigu, but questions their effectiveness due to limited training, outdated equipment and infrastructure problems.
The burnt concert hall “Crocus City Hall” Photo: Scanpix
2024-04-01 17:55:00
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