Russian Arms Makers Kalashnikov Lost $760 Million Due to CAATSA Sanctions: Report

Russia has lost an estimated 50 billion rubles ($760 million) in potential gun and ammo sales since international sanctions sealed off the U.S. market in 2014, the state-owned Rostec corporation has said.

Russia’s estimated 4.5 million gun owners with 7.3 million registered small arms pale in comparison with the nearly 400 million civilian-owned firearms in the U.S.

“Domestic producers lose about 10 billion rubles of revenue a year because of sanctions,” Sergei Abramov, who heads Rostec’s conventional arms and ammunition branch, told the RBC news website Friday.

“It’s not difficult to calculate the amount over all five years of sanctions,” he added.

Around 80 percent of Russian-made small arms and ammunition were exported to the U.S. and Europe before the sanctions were imposed, the outlet estimated, citing an unnamed arms manufacturer.

Read More   Elbit Systems won $200 million contract to supply ATMOS howitzers

Since then, the U.S. has begun buying ammo for Russian- and Soviet-made weapons from China and Bulgaria, Abramov said.

Rostec is currently devising steps to revive Russia’s ammunition manufacturing industry by March, RBC reported.

Russia’s biggest firearms maker Kalashnikov drafted legislative amendments in mid-2018 to relax national gun laws and improve sales.

© 2020, GDC. © GDC and www.globaldefensecorp.com. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to www.globaldefensecorp.com with appropriate and specific direction to the original content.

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.