cross-posted from: https://lemmy.sdf.org/post/48930044
Russia’s military and aviation manufacturing machine has been functioning throughout its full-scale invasion of Ukraine, which has surprised some. For example, the Russian defense industry has been creating and selling Su-35s to Iran and other equipment to various allies. However, according to an exclusive document we acquired, the costs the manufacturers set for some jet components are not competitive, having increased by almost 200% at a time when Russian economic stability is wavering.
The contract in question concerns China, one of Russia’s larger and more reliable trading partners for military equipment. If Moscow refuses to sell these goods at the price Beijing originally expected, the China-Russia relationship could deteriorate, and Russia risks its reputation, while profits would be significantly reduced. This shows Russia is facing difficult decisions: reputation and cooperation vs profit.
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The letter we have acquired concerns a pricing dispute. It is internal correspondence, dated March 7th, 2025, from A.A. Kucherenko at the Russian state-controlled aircraft manufacturing corporation United Aircraft Corporation (UAC) to A.V. Martynenko, director of the Second Moscow Instrument-Making Plant (2 MPZ) that produces aircraft instruments and sensors.
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Other bodies mentioned in the documents are the Federal Service for Military-Technical Cooperation (FSVTS), which regulates arms exports and provides oversight to the export of these parts to China, and JSC “NASK,” a Russian export logistics and intermediary company.An application was started for procuring aviation parts for Su-27 and Su-30 fighter jets as part of ongoing support for previously exported jets. The order in question is related to a contract signed on November 8, 2024, for “Foreign Customer 156.” This designation is how official Russian export documentation refers to China. The parts listed include pressure-measurement and relay systems required for the aircraft’s operation and maintenance.
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Essentially, this indicates that the parts for the jets are manufactured at a higher export cost than the one set in the 2016 deal, and are no longer competitive for buyers. The document states that costs have risen by 193.66% since 2022 and have exceeded contractual prices by 8.3 times. This pricing assessment was undertaken by JSC “NASK,” meaning there’s significant oversight of the manufacturing and pricing processes.
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In the document, they explain that the higher prices could risk the contract altogether, and that:
“This customer reacts negatively to sharp price fluctuations, and an unjustified proposal to increase contractual prices will be regarded as an unwillingness to develop long-established, long-term partnership relations, which may ultimately lead to the failure to sign the planned contract.”
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