Sanctions boost national defense industry: official

ST. PETERSBURG, Russia - Anti-Russian sanctions imposed by the West are leading to the Russian defense industry's steady growth, the deputy chief of the Russian state-owned arms exporter Rosoboronexport said Wednesday.

Despite the sanctions, Russia has not canceled a single order, and countries like Vietnam, India and Slovenia are receiving Russia-built warships, Igor Sevastyanov said at the opening of a naval exhibition here.

Naval equipment occupies around 15 percent of Russia's overall military-technology exports, while the total volume of naval hardware exports currently exceeds $5 billion, he said.

"Russia, unlike some European countries, is a reliable supplier of naval military equipment," the Interfax news agency quoted Sevastyanov as saying.

He added that negotiations are underway with potential clients in the Asia-Pacific region, Africa, the Middle East and Latin America.

Sevastyanov described the sanctions as mutually harmful, as Russia has to invest heavily in import substitutes while EU countries suffer from idle production capacities and financial losses.

However, "import substitution in Russia has already become irreversible and Europeans have nothing to offer (Russia) now," the official said.

The demand for Russian naval hardware is steady in the global arms market, Sevastyanov said.

Advanced scientific technologies, strong national support, highly-trained personnel and substantial industrial production capabilities are helping Russia maintain its leading position in the global naval hardware market, he said.

President Vladimir Putin in May urged the defense industry to build everything on an "absolutely new, cutting-edge technological and scientific basis."