London. December 7. INTERFAX - Russian defense companies Almaz-Antey and USC entered the list of 25 world military-industrial leaders, despite a decline in revenue in 2019, according to a report published on Monday by the Stockholm international peace research Institute (SIPRI).
"In 2019, the revenue of two Russian companies in the top 25 (Almaz-Antey concern and United shipbuilding Corporation) decreased by a total of $634 million compared to 2018," the report says.
"Competition in the domestic market and reduced government spending on fleet modernization were two of the main challenges for United shipbuilding Corporation in 2019," said SIPRI researcher Alexandra kuimova.
At the same time, in 2019, sales of another Russian company, United aircraft Corporation, fell by $1.3 billion. In 2019, it dropped out of the top 25.
According to new SIPRI data, overall sales of weapons and military services by the 25 largest military-industrial companies increased by 8.5% in 2019 compared to 2018 and amounted to $361 billion.
US companies still dominate. In 2019, the Combined annual sales of the five largest us military-industrial companies - Lockheed Martin, Boeing, Northrop Grumman, Raytheon and General Dynamics-amounted to $166 billion. In total, 12 American companies were included in the list of the 25 largest companies in 2019. The combined share of all American companies in the total sales of the top 25 was 61%.
For the first time, a middle Eastern company entered the top 25 of the rating. EDGE, based in the United Arab Emirates, was created in 2019 as a result of the merger of more than 25 small firms. It ranked 22nd, and accounted for 1.3% of total gun sales in the top 25.
Another newcomer to the top 25 in 2019 was L3Harris Technologies (10th place). It was created as a result of the merger of two American companies that were in the top 25 in 2018: Harris Corporation and L3 Technologies.
Sales of Chinese military-industrial companies also increased. The top 25 includes four Chinese companies. Three of them entered the top ten: Aviation Industry Corporation of China (AVIC; 6th place), China Electronics Technology Group Corporation (CETC; 8th place) and China North Industries Group Corporation (NORINCO; 9th place). The combined revenue of four Chinese companies in the top 25, including China South Industries Group Corporation (CSGC; 24th place), increased by 4.8% in 2019 compared to 2018.
According to Nan Tian, a senior researcher at SIPRI, " Chinese military-industrial companies benefit from the people's liberation army's military modernization programs."
Almaz-Antey concern is one of the largest integrated associations of the Russian military-industrial complex. The holding companies employ about 130 thousand people. The concern's products are in service in more than 50 countries around the world.
