Crisis in the Russian Military-Industrial Complex
In Russia, even key enterprises of the military-industrial complex, which had priority funding and orders from the state, are in crisis. This was reported by the Center for Counteracting Disinformation.
According to the Center, one of the leading players in the market - the drone manufacturer 'Kronstadt', has received over 40 lawsuits totaling more than 626 million rubles (approximately $7.7 million) in the last three months. The enterprise has been operating with billion-dollar losses for several years.
'The main reason for the financial collapse is the exit of the strategic investor AFK 'System' from the project in 2022, which deprived the company of access to capital. Even before the full-scale war, the company had debts and was a 'problematic asset'. Despite having government contracts from the Russian Ministry of Defense, it was unable to improve its financial condition. Additional pressure was created by sanctions and rising component costs. Today, 'Kronstadt' is left alone with debts and mass claims from suppliers,' the Center noted.
Even getting into the military state procurement system no longer guarantees business survival.
'The Russian economy is so unbalanced by the war and sanctions that even strategic sectors like drone manufacturing are beginning to collapse,' the Center emphasized.
It has been reported that the military-industrial complex in Russia is in crisis, with even leading enterprises facing serious financial problems that threaten their operations amid war and sanctions.