Ukraine’s top buyer of 2014 military exports was Russia, report says

Ukraine was the world’s ninth-leading military hardware and armaments exporter in 2014, selling USD 664 mln worth of goods to foreign countries, according to a report released on March 16 by the Stockholm International Peace Research Institute (SIPRI). The exports consisted of USD 229 mln worth of airplanes, USD 139 mln worth of armored vehicles and ships, USD 128 mln worth of engines and USD 29 mln worth of missiles. Ukraine’s biggest buyer was the Russian Federation, which acquired USD 155 mln worth of hardware, identified by the report as “engines and licensed production of An airplanes.” Thailand was the second biggest buyer and China was third. During the last five years, Ukraine exported USD 3.8 bln in military hardware and arms, also ranking ninth. Ukrainian military exports in 2010-2014 rose 70% from the 2005-2009 period, the report said.

Fatherland Party Head Yulia Tymoshenko called for an immediate report by the National Security and Defense Council regarding Ukrainian sanctions against Russia. She pointed out that Ukraine hasn’t adopted the necessary sanctions while asking the world to do so. “We need to stop adhering to double standards and that’s why the (parliamentary) faction is insisting on an immediate report,” she said.

Zenon Zawada: At first glance, the notion that Ukraine’s top buyer of military exports was Russia would cause a sense of bewilderment. However, it shouldn’t be cause for alarm considering just how intertwined the economies of these two nations have been for so long. The transition away from exporting to Russia must take several years. It’s positive that the exports to Russia mostly reportedly involved engines and Antonov planes, as opposed to armaments (which would be used to kill Ukrainians directly).

Nonetheless, Tymoshenko has sounded an important call for the Ukrainian government to accelerate its own sanctions against the Russian government. Western critics of Ukraine will continue to point out that Ukraine isn’t even applying its own sanctions to the same extent as the West. Some initial steps were taken in the second half of last year but haven’t been followed up on since. Certainly, that would mean that Ukrainian military-related exports to Russia should drop even further this year. Ukrainian aircraft producer Antonov and CIS leading aircraft engine maker Motor Sich (MSICH UK) need to find new markets.