Rostec becomes 7th largest defense firm worldwide: What’s driving its revenue surge?

Defense Express writes about this. 

Rostec climbed to 7th place in the Stockholm International Peace Research Institute's (SIPRI) 2023 defense company rankings, with revenue jumping 49% from $14.5 billion to $21.7 billion. However, SIPRI flagged the data with "a high degree of uncertainty," noting it includes estimates from Rostec's subsidiaries, like United Aircraft Corporation and Uralvagonzavod.

Rostec’s position is based on an estimate, SIPRI noted, warning that its reported revenue isn’t fully verified.

Rostec’s surge in income aligns with Russia’s spiraling military spending. The country’s defense budget soared from $45 billion in 2022 to $112 billion in 2023, and is projected to hit $145 billion in 2024. A share of these expenses inevitably turns into Rostec’s income, SIPRI noted, suggesting its position may rise further next year.

Exports, however, played little role in Rostec's revenue growth. SIPRI data shows just one 2023 contract: two Mi-17 helicopters sold to Kyrgyzstan. By comparison, Russia’s 2022 exports included 24 Yak-130 jets to Iran and various used aircraft to African nations.

Instead, Rostec’s rise is fueled by internal demand for weapons driven by Russia's war in Ukraine. This growth is likely to continue as military spending escalates, but the uncertainty surrounding its revenue figures raises questions about the credibility of its ranking.

SIPRI's inclusion of Rostec with uncertain data remains debatable, the report concluded.