Sanctions and inflation impede Russia ability to buy weapons - GUR

Russia has allegedly established fixed prices with a single supplier to ensure that defense contracts are fulfilled.

 A view shows an armoured convoy of pro-Russian troops in the course of Ukraine-Russia conflict on a road leading to the besieged southern port city of Mariupol, Ukraine March 28, 2022. (photo credit: Alexander Ermochenko/Reuters)
A view shows an armoured convoy of pro-Russian troops in the course of Ukraine-Russia conflict on a road leading to the besieged southern port city of Mariupol, Ukraine March 28, 2022.
(photo credit: Alexander Ermochenko/Reuters)

Sanctions and inflation are complicating and delaying the ability of the Russian Defense Ministry to purchase defense products, and of Russian defense companies to meet orders, the Ukrainian Intelligence Directorate (GUR) claimed on Thursday.

Documents alleged to belong to the Russian Defense Ministry and obtained by GUR detail that Russia has established fixed prices with a single supplier to ensure that defense contracts are fulfilled. However, the inconsistencies between the fixed prices, cost of work, and the increase in the prices for materials and components have led to difficulty in meeting orders.

On March 25, GUR asserted that the Russian defense industry was unable to meet its production contracts for munitions and vehicles due to rising costs and the inability to obtain electronics and components normally purchased from countries now sanctioning Russia.

Electronics, materials and optics needed for producing modern military equipment and vehicles were alleged by GUR on April 2 to be smuggled into Russia through East Asia.

Due to the loss of key foreign components and costly raw materials, Russia may have to produce older components and vehicles — in the case of one factory, equipment purportedly developed from as far back as the 1960s — instead of modern gear GUR has previously claimed. 

 Service members of pro-Russian troops walk along a road during Ukraine-Russia conflict on a road near the besieged southern port city of Mariupol, Ukraine March 21, 2022. (credit: REUTERS/ALEXANDER ERMOCHENKO) Service members of pro-Russian troops walk along a road during Ukraine-Russia conflict on a road near the besieged southern port city of Mariupol, Ukraine March 21, 2022. (credit: REUTERS/ALEXANDER ERMOCHENKO)

In late March the Intelligence Directorate claimed that Russia is attempting to restore old military equipment held in long-term storage to replace losses suffered during its invasion of Ukraine but it is encountering difficulty in doing so because of corruption and the poor condition of the equipment.

"Optical devices and electronics containing precious metals were stolen from the combat vehicles," said GUR. The intelligence body reported that many of the 4th Tank Division's mothballed tanks were "completely dismantled," and that some did not have engines.