Tag Archives: ГПВ

The State of the State Armaments Program

From the “better late than never” file…

On January 11, Aleksey Nikolskiy published an article on the next GPV for Vedomosti.  He laid out the state of the battle over state armaments program 2018-2025.

What Will They Spend?

According to Nikolskiy, the new GPV will be only half of what Russia’s Defense Ministry wants, if the Finance Ministry gets its way.

The GPV covers ten years, but the Russian government adopts one every five years. So the new program was due to be adopted and implemented last year.

The next GPV was being prepared in 2014-2015.  But with the poor economic forecast, Western sanctions, and the need for import substitution, the Kremlin elected to delay launching the new arms program until the first half of 2017, a former MOD official told Nikolskiy.

The new arms program is also late because industry’s initial promises on import substitution for Western as well as for Ukrainian products turned out to be too rosy, CAST director Ruslan Pukhov tells Nikolskiy.  But, he adds, it’s impossible to drag this out longer because industry needs to know the fiscal parameters of its work in the long-term.

The current program for 2011-2020 was approved in late 2010.  It contained 19.1 trillion rubles for the MOD.  That was more than $630 billion at the exchange rate of the day.  But, according to Nikolskiy, not more than 40 percent of this amount had been spent by the start of 2017.

Forty percent is 7.6 trillion, or roughly 1.3 trillion per year for the first six years of a ten-year program.  Leaving so much backloaded implies that Russian defense industry was unable to absorb and use more money, at least without massive graft and waste. So the new arms program might continue a similar annual rate of investment in acquisition.

Nikolskiy notes that every arms program the Defense Ministry requests is several times more than the Finance Ministry believes it can allocate.  In 2015, the former reportedly reduced its initial request for 2018-2025 from 55 to 30 trillion rubles while the latter was ready to agree to an amount not greater than 12 trillion.

Kommersant’s Ivan Safronov reported that Defense Minister Sergey Shoygu and Finance Minister Anton Siluanov spoke in “elevated tones” during a September 9 Kremlin meeting on the GPV.  With President Vladimir Putin chairing the session, the ministers reportedly argued over the necessity and feasibility of 22 vs. 12 trillion rubles for arms procurement.

This is the customary kabuki.  In 2010, the MOD came in similarly high — 36 trillion. The Finance Ministry responded with 13 trillion. Ultimately, they compromised at a figure closer to the latter’s preference — 19.1 trillion rubles.  In retrospect, it wasn’t surprising given that even Putin expressed his qualms at spending so much. 

What Will They Buy?

According to a defense industry manager who spoke with Nikolskiy, armaments tsar Deputy Defense Minister Borisov already announced the emphasis in the near term will be placed to a greater degree on the purchase of well-assimilated systems – for example, Su-30SM fighters or Improved Kilo-class (proyekt 636) submarines – and on modernized equipment which is significantly cheaper than new.

Meanwhile, the acceptance of fundamentally new types of armaments is passing into the more distant future.  They include important platforms like the T-14 / Armata tank and T-50 / PAK FA fighter, and even some strategic weapons, writes Nikolskiy.

This would represent some retrenchment from Moscow’s ambitions in comparison with what it originally wanted from the current arms program.

Additional Perspective

U.S. defense acquisition is still probably three times the $50 billion or less Russia might spend on an annual basis.  Russian procurement of arms attracts more attention and causes more concern than its volume alone warrants.

What Russia actually receives for the money it spends makes an interesting comparison with China.  Beijing clearly lags Moscow in high-tech weapons, but it seems to get greater industrial bang for its buck when bending metal.

For example, Chinese shipbuilding.  In ten years, China put 22 Type 054A frigates to sea. The Russian Navy received three or four frigates during the same years.  China is set to build its third aircraft carrier.  Russia’s lone Kuznetsov carrier will soon enter the shipyard to begin a three-year (probably longer) modernization effort.

Perhaps China hands will tell us if naval construction is a happy aberration for Beijing or if it enjoys the same kind of productivity in ground and air systems.

Conclusion

Rearmament is something that has gone Moscow’s way in recent years.  It has restored Russia’s image as a formidable power.  Rearming — even over-arming — has created and fueled a siege mentality at home.  That mentality keeps the Russian Federation distant from the Western community of nations, and its people remote from the kinds of socioeconomic demands Westerners place on their political leaders.  So the arms program has been part of Putin’s strategy for that reason if no other.

Moscow will want to maintain the momentum rearmament has generated since 2011.  Too much of a break in funding would slow defense industry, which had difficulty finding traction.

But Russia’s economic situation is harder now than 2010.

Best Guess:  GPV 2018-2025 will be announced with a nominal budget between 15 and 17 trillion rubles.

The Ministry of Finance will still groan at this amount, but will be secretly pleased at having kept arms spending at a reasonable level.

What money is actually disbursed, as we’ve seen, will be less than the full amount as the years go by.

The Navy and State Armaments Program 2011-2020

One could make a study of nothing but forecasts about the Russian Navy’s future.  They vary pretty widely.  But Trud’s military correspondent, Mikhail Lukanin, published an interesting and realistic one on 24 November.

Lukanin claims the details of future Navy procurement plans have been revealed to Trud.  This assumes the Navy (or someone) actually knows what they are at this point . . . a debatable proposition.  At any rate, what he presents sounds pretty reasonable and achievable, whether or not it has any official sanction.

Lukanin breaks the news that the largest part of Russia’s military expenditures and arms procurement over the next 10 years will be for the Navy.  He cites Ruslan Pukhov:

“Of the 19 trillion rubles allocated in the budget for the purchase of new armaments until 2020, the fleet’s share comes to 5 trillion, that is significantly more than any other service of the Armed Forces.”

If this turns out to be true, it is a significant amount, 500 billion rubles (more than $16 billion) per annum over the coming decade, if the Defense Ministry gets its promised amount, and the Navy gets its.  Lukanin says the Navy, which got only four new ships in the last 20 years, will be the military’s priority for the very first time.  He says, according to ‘plans,’ the Navy will receive 36 submarines and 40 surface combatants.

Lukanin explains all this with a quote from former First Deputy CINC of the Navy, Fleet Admiral Ivan Kapitanets:

“Sharply reinforced attention to the fleet is explained by the fact that Russia’s military-political leadership, judging by everything, has come to the conclusion that the state’s naval power is more important than ground forces.”

He points to the rapid U.S. defeat of a strong Yugoslav Army in 1999 using only air power, much of which was carrier-launched.

But Lukanin also cites Anatoliy Tsyganok, who believes a continental power like Russia can never undervalue its land troops.

With all this said, Lukanin addresses what will come out of Russia’s new ‘naval concept’ in which the U.S. is no longer the enemy, and ships aren’t built for a single purpose like killing carriers.  He lists:

  • 8 SSBNs.
  • 22 SSNs and diesel-electric submarines (yes, this would be 30, not 36, as it said at the top, and at least two of the SSBNs are complete, well almost).
  • 12 frigates like the new Admiral Gorshkov frigate (proyekt 22350).
  • 20 Steregushchiy corvettes (proyekt 20380).
  • 10 amphibious landing ships, 4 Mistral type ships and 6 Ivan Gren-class LSTs (proyekt 11711).

Citing unnamed ‘analysts,’ Lukanin posits four missions that would be fulfilled exclusively by Russia’s naval forces:

  • Securing Russia’s oil and gas resources, facilities, and transport on the world’s oceans.
  • Protecting maritime trade links from piracy.
  • Providing a naval counterweight to China’s population and military manpower on Russia’s Far East borders.  Lukanin’s analysts contend the Chinese Navy is relatively weak, and the “Pacific Fleet even in its current, far from perfect condition is superior to the Chinese in combat potential by several times” (was the same thing said about the Japanese before Tsushima?).
  • Showing the flag in the Middle East, Southeast Asia, and Latin America to interest countries in closer ties and arms contracts with Russia.

Lastly, Lukanin looks at how the importance and roles of Russia’s individual fleets will change.  He calls this the turn to the Pacific.  He says the Pacific Fleet will get most of the Navy’s large surface ships, and half of its nuclear submarines.  It will get the first Mistral, and has the mission of deterring both China and Japan.  The Northern Fleet will retain its importance as home to many SSBNs, and because of Russia’s oil and gas claims in the Arctic.  But its surface force will decline.  The Black Sea Fleet will be a focus of renewal; it is looking at a Mistral, 12 new corvettes, and 6 new submarines.  Its focus is Georgia, and South Stream.  The Baltic Fleet will be reduced, losing ships to the Black Sea Fleet, though it will get 2-3 new corvettes.

So what it comes down to is, can the Navy get everything Lukanin listed?  ‘Back of the envelope’ math says yes.  What he listed might cost $30 billion, maybe $40 at the extreme.  There is also stuff the Navy’s discussed but he didn’t mention (carriers, refurbishing CGNs, restarting the WIG program, new naval aircraft).

What are the impediments to carrying off such a program?  Firstly, actually getting the promised amount of financing.  GPVs are easy to launch, but don’t get finished before they’re superceded by another one.  In short, over a ten-year period, it’s unlikely the Navy will get the planned amount.  Even if it does, how much will the corruption ‘tax’ eat away at the amount?  Short answer – a lot. 

Beyond financing, there’s another complex issue – can Russia’s naval industry produce this list in the coming decade?  How much productive capacity is available, what condition is the infrastructure in?  Is there sufficient skilled labor for what shipyards pay and where they’re located?  Recent experience says things aren’t good on this score.  Some yards are still pretty full with foreign orders, Sevmash seems full with Russian orders, and other yards are in poor shape.  In short, it seems it is taking longer than planned to get new ships and submarines in the water.

Perhaps the present author is just not an optimist.  Moscow can afford the ‘plan’ Lukanin describes, but actually completing it will be difficult for a lot of reasons.

Litovkin on What the GPV Will Buy

Viktor Litovkin (photo: RIA Novosti)

Returning to procurement and the GPV . . . in this week’s Delovoy vtornik, NVO’s Viktor Litovkin also asks what will 19 trillion rubles be spent on. 

He says the answer isn’t simple.  During the last 20 years of ‘starvation rations,’ the armed forces got handfuls of essential combat equipment, and, meanwhile, a dangerous imbalance between strike and combat support systems was created.  And this was obvious against Georgia in 2008. 

Litovkin says this imbalance has to be corrected, meanwhile priorities like strategic nuclear forces can’t be forgotten – not just the offensive triad, but also the missile attack early warning system (SPRN), missile defense (PRO), and aerospace defense (VKO). 

Like Viktor Yesin of late, Litovkin asks how Russia will replace its aging strategic offensive arms to stay up to the limits of the Prague / New START agreement.  Half the Russian force is SS-18, SS-19, and SS-25 ICBMs which will be retired in 7-10 years.  Moscow needs to build 400 strategic systems to replace them.  He doesn’t even mention Delta III and IV SSBNs and their aging SLBMS.  And Russia has only the SS-27, RS-24 Yars, Sineva, and Bulava to replace them. 

Litovkin expects a very large amount of money to be spent not just on replacing strategic systems, but also reequipping the enterprises that produce them. 

He turns to his second priority – also demonstrated by the Georgian war – precision-guided weapons, which in turn depend on reconnaissance-information support and equipment in space, on long-range surveillance aircraft [AWACS], and UAVs. 

Priority three – automated command and control systems (ASU).  He cites Popovkin on linking all service C2 systems into one system over 2-3 years. 

Litovkin says you can’t forget about the Navy, but he mentions just the Borey-class SSBNs, and the need for a wide range of surface ships.  And he makes the point [made by many] that Mistral is all well and good, but it’ll have to have multipurpose combatants operating in its battle group.  They need to be built, and they won’t cost a small amount of money. 

One can’t forget aviation either.  Litovkin cites a $100 million per copy cost for 60 fifth generation fighters [that’s a significant 180-billion-ruble bite out of the GPV].  He notes Vega is working on an updated Russian AWACS (A-100).  And, like Korotchenko, he mentions transport aircraft, but also combat and support helicopters. 

And so, says Litovkin, the question arises – isn’t the country putting out a lot of money to rearm its army? 

Viktor Litovkin (photo: Ekho Moskvy)

Being bold, he says, not really.  He actually uses that accursed 22 trillion figure, which is procurement for all power ministries.  If he used 19 trillion, it would be 1.9 trillion or $63 billion per year for Russia against $636 billion for the U.S., $78 billion for China, $58 billion for the U.K., and $51 billion for Japan.  But he doesn’t say this is annual procurement, the GPV, against the total annual defense budget for these other countries.  A bit of comparing one piece of pie to a whole pie.  Nevertheless, he concludes this makes Russia far from champion when it comes to military expenditures. 

Litovkin’s last word is Russia will remain one of the G8 with a powerful, combat capable, and effective army, but without it, only a raw materials appendage of either the West or East. 

But one wonders, hasn’t Russia long been in the G8 without that kind of armed forces?  Doesn’t breaking away from the raw materials supplier role have more to do with developing an open, attractive, innovative, value-added, and competitive economy (and a political system and society to match) than with military power? 

What Will GPV 2011-2020 Buy?

Russian military procurement policy is an obvious focus of what you read here, and there’s lots to write about on this score lately – the GPV, defense budget, OPK modernization and innovation, etc.  It’s not possible to capture it all at once.  Here’s a start, and hopefully it will lead to broader insights later.

Writing for his latest project – the Center for the Analysis of the World Arms Trade (TsAMTO or ЦАМТО), Igor Korotchenko addressed what the new GPV might buy.  His article was picked up by VPK.name, and then a somewhat truncated version ran in Nezavisimoye voyennoye obozreniye.  He uses the 22 trillion ruble figure rather than the 19 trillion for the armed forces specifically.  Not that it matters since it’s a wag at best anyway.

In his first broad swipe, Korotchenko forecasts that Russia will buy 500 new aircraft, 1,000 helicopters, and 200 air defense systems among other arms and equipment over the 2011-2020 period.  He admits, even with a fairly generous procurement budget [if approved and fully disbursed every year], it will be impossible to buy everything each service and branch will need after 20 years of very small-scale procurement.

And this is exactly, of course, the point that Popovkin’s deputy, General-Lieutenant Oleg Frolov was making when he argued for 36 trillion . . . .

So, they can’t have everything and will have to prioritize.  Korotchenko gives it a whack, maybe not satisfactory, but it’s a start:

  • Strategic nuclear forces;
  • Precision-guided weapons;
  • Automated command and control systems (ASU);
  • Aircraft;
  • Air and missile defense (PVO / PRO).

Korotchenko doesn’t talk specifics about his first two priorities. On the third, he calls for a unitary military C2 system to enable Russian netcentric warfare.  On aircraft, he somewhat surprisingly emphasizes transport aircraft to move Russia’s million-man army between strategic axes as needed.  And Korotchenko lists PVO / PRO without further commentary.

He supports efforts to overcome Russia’s lag in UAVs, ships, individual protective equipment and soldier systems, and armored vehicles through cooperation with Israel, France, Germany, and Italy.

Then Korotchenko turns back to aircraft, saying they are the thing that will indicate what kind of armed forces Russia will have in 2020.  Based on what’s been said publicly, he counts:

  • An-124 Ruslan — 20
  • An-70 — 50
  • Il-476 — 50
  • Il-112B — ??
  • Su-35S — 48  
  • Su-27SM — 12
  • Su-30MK2 — 4
  • PAK FA — 60
  • Su-34 — 32, possibly 60-80 more
  • Su-25UBM / Su-25TM — 10, possibly 20 more
  • MiG-35 — 30
  • MiG-29SMT / MiG-29UB — 20-30
  • MiG-29K / MiG-29KUB –26, possibly 22 more
  • Yak-130UBS — 120
  • New airborne early warning aircraft — 2-3
  • Be-200PS — 8-10

In all, he summarizes, about 500-600 aircraft by 2020.

Korotchenko doesn’t talk money, so we’ll have to think about what this would cost.  In terms of what’s covered, he’s only talked only about RVSN and Air Forces’ requirements.  You can be sure the Ground Troops, Navy, VDV, and Space Troops have their own lists.  Maybe Korotchenko will address them.

Beyond what they say they need, there are two issues.  Can they buy it all, or at least how much of it?  And, second, can the OPK produce it?  Korotchenko doesn’t get us too far into any of this.

46 Percent More or 47 Percent Short?

On Sunday, Defense Minister Anatoliy Serdyukov apparently told Bloomberg that Russia plans to spend 19 trillion rubles on its State Armaments Program 2011-2020.  Recall not long ago Finance Minister Kudrin said a final number had been worked out with the Defense Ministry, but he didn’t release it.

Bloomberg let Serdyukov advertise the plan [repeat, plan — the money has to be allocated in every annual budget] to spend 19 trillion rubles over the next 10 years as 46 percent more than Kudrin’s original offer of 13 trillion.

Serdyukov didn’t describe 19 trillion as 47 percent short of what the uniformed military says it needs to rearm.  Recall Deputy Armaments Chief, General-Lieutenant Frolov told the press 36 trillion was required to rearm all services and branches fully.

In fairness, Serdyukov admitted:

“This is the minimum we need to equip our armed forces with modern weaponry.  We could ask for a bigger number, but we need to understand that the budget cannot afford such spending, so 19 trillion is a serious amount of money that will provide considerable orders for our defense industry.”

OK, good.  There are limits on what the military can have, and this shows civilian control over the armed forces.  But what about saying this “will provide considerable orders for our defense industry.”  Isn’t the point for the armed forces to get some, or most, of what they need from industry, not simply ensuring the OPK has defense orders?

The 19 trillion rubles is not trivial.  If (a very big if) . . . if this gets approved and executed every year, it’s almost 4 times the amount in GPV 2007-2015.  But we know the GPV is always rewritten before it’s completed, so it’s very difficult to say what has or hasn’t been, or can be accomplished with any given amount of funding.

With Russia borrowing abroad to plug deficits, it’s not surprising the amount wasn’t what the military wanted.  And the state of its economy over the next couple years will determine if it actually gets this planned amount for procurement.

More Money in GPV-2020

ITAR-TASS yesterday cited a Military-Industrial Commission (VPK) source who said the volume of financing for the State Armaments Program 2011-2020 (GPV-2020) will be 13 trillion rubles (roughly $430 billion).  The source said this amount includes purchases of new arms and equipment, development of new types, soldier gear, and other army necessities.  He said the Finance and Economic Development Ministries are familiar with the amount and have not objected.

As background, ITAR-TASS reminded that this money is supposed to get Russia to not less than 30 percent modern armaments by 2015, and not less than 70 percent by 2020, according to Prime Minister Putin’s goals.

Deputy Defense Minister, Armaments Chief Vladimir Popovkin has said the RF Security Council will review GPV-2020 in June, and it will be the basis for developing a new Federal Targeted Program for OPK development.

So, 13 trillion rubles over the 10-year period is 1.3 trillion rubles in procurement per annum (undeflated, of course).  At face value, this is a significant increase over the old GPV 2007-2015, which was reportedly funded at 5 trillion rubles for 9 years, or about 550 billion rubles in military purchasing per annum.

But it’s not so easy.  First, the cascading and overlapping way the GPVs are done (how did the last years of the old one mesh with the first years of the new one?) would make it well-nigh impossible to judge what was actually bought, even if it were clear how much money was disbursed when and what was bought with it.  But none of those things are clear to outside observers, and probably not clear even to officers and officials inside the system.