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SnapshotsJun 17, 2020 | 16:31 GMT
Russia Extends a Rare Lifeline to Its Struggling Defense Sector
The Russian government's $3.6 billion bailout plan for the United Aircraft Corporation (UAC) may provide some relief for the struggling state-owned defense giant, but it won't fix the perennial low revenues and high development costs that have left Russia's defense sector straddled with debt. Sources quoted by Vedomosti suggested that the company's 400 billion ruble ($5.7 billion) debt will largely be covered by the direct capitalization of the company, as well as a restructuring of its remaining 150 ruble ($2.1 billion) debt over a 15-year period. This will allow the state-owned defense industry conglomerate, which includes critical aerospace producers such as Mikoyan and Sukhoi, to continue its operations despite its mounting debt and losses in recent years. The Kremlin, however, will likely be less forthcoming with such massive bailouts to the country's private defense companies, which are also struggling with similar financial issues.
SnapshotsNov 1, 2017 | 23:01 GMT
Russia, Iran: Cozying up to Counter Washington
The relationship between Russia and Iran is reigniting. Russian President Vladimir Putin visited Iran on Nov. 1 to meet with his Azerbaijani and Iranian counterparts in the second summit between the three countries. The trilateral format was set up last year by Azerbaijani President Ilham Aliyev to discuss shared concerns and projects in the region. But increasing alignment between Russia and Iran over the last year will give the two countries plenty to discuss.
ReflectionsDec 24, 2015 | 00:20 GMT
In Russia, a Warm Welcome for India
The cool rains and icy winds blowing over Moscow on Wednesday evening did not dampen the warm welcome Indian Prime Minister Narendra Modi received as he disembarked from his jet in the Russian capital. Modi is in Russia to meet with Russian President Vladimir Putin for the 16th annual Russo-Indian bilateral talks. The leaders of two of Asia's largest economies (India and Russia's combined gross domestic product is $4 trillion) will discuss expanding energy, trade and defense ties.
AssessmentsJan 20, 2015 | 10:15 GMT
A woman in Moscow walks past a sign showing the Russian ruble's value compared the the U.S. dollar and euro.
Russia Prepares to Slash Its Budget
In the coming weeks, the Russian Cabinet and state Duma will draw up proposals for cuts to the Russian state budget for 2015. According to Russian Finance Minister Anton Siluanov, the government could cut 10 percent of funding to all sectors except defense. This drastic proposal comes as new economic indicators show that Russia's economy is declining more quickly than expected. The budget cuts will exacerbate anxieties about Russia's economy and financial sector and threaten the economic well-being of the Russian population, the Kremlin's elite, the oligarch class and the state's strategic projects. Thus, the Kremlin will prioritize various players and sectors while seeking a longer-term de-escalation with the West that could relieve some of the economic pressure on Russia.
VideosAug 17, 2012 | 19:50 GMT
Russian Military Modernization (Agenda)
Stratfor's Vice President of Analysis Scott Stewart discusses the degraded state of Russia's military as Russian President Vladimir Putin seeks to increase the defense budget by 25 percent.
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