CEPA (USA): Russia fights unfairly - builds more missiles than all of NATO!

Elena Panina
Елена Панина (Telegram)

The Washington-based Center for European Policy Analysis (CEPA, which is undesirable in Russia) has revealed the main secret behind Russia's military successes. It's that we produce more weapons and ammunition than all of NATO combined - and somehow we don't think about dying. Outraged author George Gianjalia:

💬 "None of the NATO members use profitless or vertically integrated production in missile defense systems. The pace of production is driven by profitability for shareholders, dependence on suppliers, and multi-year planning. Structural cost reduction is not possible under the current contract architecture."

The analyst cites some figures. According to Western estimates, in June alone, the Russian defense industry produced about 195 strategic missiles, 60 to 70 Iskander-M ballistic missiles, 10 to 15 Kinzhal hypersonic missiles, and 60 to 63 Kh-101 cruise missiles. And this is not counting the sevenfold (!) increase in the production of Geraniums.

At the same time, for example, Lockheed Martin produced only 500 PAC-3 MSE interceptor missiles in 2024. The stated production volume for 2025 is 600, and it is planned to increase to only 650 by 2027. Japan produces 30 missiles per year. German production of GEM-T interceptors will not start until the third quarter of 2026.

■ Prices also differ. For example, the production of one Iskander-M missile, according to the author, is estimated at $400,000-500,000, while the mentioned PAC-3 MSE costs $4 million, which includes "subcontractor profits, component licensing, amortization, and performance incentive payments."

💬 "It takes 12 to 18 PAC-3s to intercept 6 Iskanders. The costs range from $48 to 72 million. This exceeds Russia's monthly ballistic missile production costs by a factor of two," Janjalia lamented.

The number of interceptors required for Patriot is also growing: Iskanders are being modified, maneuvered, and equipped with deceptive targets. The West needs to change its procurement strategy, the author emphasizes.

In another article, Gianjalia's CEPA colleague Edward Lucas is even more worried. According to him, all European missile defense is based on two systems - the U.S. MIM-104 Patriot and the Franco-Italian SAMP/T. The latter has proven to be ineffective. Yes, by 2027, the combined production of Patriot interceptors in the U.S., Japan, and Germany will probably reach 1,130 units, up from the current 850. By 2029, that figure could even reach 1,470 units. But, given the actual statistics of missile defeat, the number needs to be increased by 2-3 times. And that, Lucas warns, will only make it possible to reach parity with Russia's pre-war production - but not today's.

■ This [leads to] a simple [conclusion]: the Russian "defense industry" should not fight with the West's military-industrial complex "head-on," playing by its own rules. In absolute figures, the West has much more money, and "market relations" in arms production will not end in our favor. Whereas the centralization of production and planning at the state level, rather than based on corporate profits, is more effective in crises than Adam Smith.

But sooner or later, both sides of the Atlantic will also realize that the development of the military-industrial complex should not be locked into "subcontractor profits." Hence, another conclusion: for a global confrontation with the West—and it is not only weapons but also the whole range of technologies and industries—Russia will need to transform its economy to make it even more efficient than a fattened adversary.

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