MOSCOW. April 28 (Interfax-AVN) - The Russian military leadership demands royalties from arms sales on the foreign market, a source in the defense industry told Interfax-Military News Agency on Monday.
"The Defense Ministry is raising the issue of obtaining a share of profits obtained by defense industry enterprises from arms exports; the money will be spent on procuring military hardware and materiel for the Russian Armed Forces," the source said.
The Defense Ministry is planning to receive USD200-300m from defense industry enterprises annually, the source noted. "The money will be allocated for the implementation of the state defense order. The majority of directors of defense industry enterprises are ready to accept the Defense Ministry's proposals," he said.
Russian arms traders are planning to earn USD5bn from arms exports this year. "We are hoping for an increase in Russian arms procurement after the war in Iraq," the source stressed.
Last year, Russia earned USD4.8bn from arms sales on the foreign market.