Russian weapons sales to China fall

Russian weapons sales to China fall

By Stephen Fidler in London

Published: March 30 2008 22:00 | Last updated: March 30 2008 22:00

Russian arms exports to China dropped a dramatic 62 per cent last year, according to figures released on Monday, in a development described by one expert as potentially marking the beginning of the end of high volume arms transfers between the two countries.

China has been the world’s biggest arms importer for at least a decade – and more than 90 per cent of these imports have come from Russia. But last year its overall arms imports dropped by more than 60 per cent, suggesting China’s industrial capabilities are beginning to approach those of its neighbour.

The figures were released on Monday by the Stockholm International Peace Research Institute, which compiles a comprehensive public database of worldwide arms transfers.

Paul Holtom, a Sipri researcher, said Russia had finished deliveries on all its large arms contracts with China, with some important contracts being terminated early. No meetings of the Military Technical Commission, the body that negotiates arms agreements between the two countries, which normally occur twice yearly, took place last year, although one appears to be scheduled for later this year.

“With no new contracts for big ticket aircraft or ships in 2007, this may be the beginning of the end for high-volume arms transfers from Russia to China,” Mr Holtom said.

An important reason for this appeared to be the growing sophistication of China’s defence industry. He said China’s J-11B fighter, based on Russia’s Sukhoi Su 27, was now claimed to contain at least 90 per cent of Chinese components.

China’s ability to replicate and develop Russian technology had led to a debate in Russia about whether it should supply Beijing with more advanced fighter aircraft, Mr Holtom said.

Russia, the second largest arms exporter in the world after the US, had also had quality control problems with other orders, including Algeria which has sought to return 15 Mig 29 fighters.

Russian officials say the defence industry has picked itself up after near collapse in the 1990s, with exports running at $5bn-$6bn (€3bn-€3.8bn, £2.5bn-£3bn) a year, up from $2bn-$3bn a decade ago.