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Section 6-7. Military Economy and Military Reform in Russia

In: Russian Economy in 2014. Trends and Outlooks. (Issue 36)


  • V. Zatsepin
  • V. Tsymbal

    (Gaidar Institute for Economic Policy)


The accession of the Republic of Crimea to the Russian Federation in March 2014 was not favored by the global community and resulted in Western economic sanctions against Russia, getting even tougher throughout the entire year. The sanctions were focused chiefly on Russia’s defense sector, having a strong adverse impact on the fulfillment of the state armaments program and the military-industrial complex (MIC) development program planned by the Russian leadership. The key tit-for-tat measures included the development of import substitution plans in the military-industrial complex and the placement of the Military Industrial Commission under the supervision of President Vladimir Putin in September. The international sanctions in 2014 had no effect whatsoever on the performance of the plans of professionalization and combat training of Russia’s Armed Forces.

Suggested Citation

  • V. Zatsepin & V. Tsymbal, 2015. "Section 6-7. Military Economy and Military Reform in Russia," Book Chapters, in: S. Sinelnikov-Murylev & A. Radygin (ed.),Russian Economy in 2014. Trends and Outlooks. (Issue 36), edition 1, volume 36, chapter 6, pages 500-519, Gaidar Institute for Economic Policy.
  • Handle: RePEc:gai:gbchap:re36-06-7-en

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    Military Economy; Military Reform;

    JEL classification:

    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General


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