British intelligence: Russia buys military goods 60% more expensive due to sanctions

A study by the Bank of Finland's Institute for Emerging Economies shows that third countries charge a price premium of more than 60% for exporting some sanctioned goods to Russia.

British intelligence notes that while Russia has increased production of key munitions most commonly used in Ukraine, such as artillery shells, sanctions are likely to affect Russia's more advanced and sophisticated weapons systems. These systems will almost certainly rely increasingly on foreign components and technology for production and development.

In addition, sanctions will continue to disrupt both the supply and demand for Russian arms exports, as well as significantly complicate payment mechanisms to Russia.

According to the UK Ministry of Defence, this has almost certainly contributed to a significant reduction in Russian arms exports and increased delays in deliveries, including to some of its most important remaining arms customers.

According to the Stockholm International Peace Research Institute, Russia's share of the global arms trade fell to 11% between 2019 and 023, down from 21% between 2014 and 2018.