The risks of financing production activities of public corporations defense industry in the performance of the state defense order

The article examines the key factors that determine the combination of various sources of financing for state corporations and their impact on the development of the defense industry in Russia in the presence of risks and geopolitical instability. The main sources of financing for defense industry enterprises in the current socio-economic realities and potential demand for defense products are considered. It is shown that the defense industry of the Russian Federation in recent years has been financed primarily by the State Defense Order and exports. Mechanisms for financing defense industry corporations by stimulating the processes of commercializing innovations, introducing the principles of lean production and a risk management system, optimizing operational processes, and investing in new highly profitable projects are proposed. Measures aimed at stabilizing the financial condition and increasing the financial stability and solvency of defense industry enterprises are proposed

Keywords: financing of the defense industry, defense spending, enterprises of the defense industry, state defense order


  1. Usachev N. N. Problems of financing enterprises of the military-industrial complex//Socio-economic development of economic entities, industries, regions: problems and prospects. Collection of materials of the All-Russian scientific-practical conference. 2019. P. 188–191.
  2. Frolov I. Diversification of the defense industry: a goal, an intermediate stage or a means of development?//New defense order. 2019. No. 4 (57) (Accessed date 27.06.2021).
  3. Development of the military-industrial complex 2020. Website of the Ministry of Industry and Trade. (Accessed date 27.06.2021).
  4. Ermilina D. A. On the financing of defense industry enterprises//Protection and security. 2018. No. 3 (86). P. 38–40.
  5. Batkovsky M. A., Bozhko V. P. Modernization of defense industry enterprises at the expense of different sources of financing//Anagenesis of economic systems management as a new look at economic development. Collection of scientific papers based on the materials of the 1st International Scientific and Practical Conference. 2017. P. 129–149.
  6. Dr. Nan Tian, Alexandra Marksteiner and Dr. Diego Lopes da Silva Trends in world military expenditure. 2020. SIPRI. (Accessed date 27.06.2021)
  7. Decree of the Government of the Russian Federation of February 6, 2019 No. 85–6 «On Amendments to the State Program of the Russian Federation» Development of the Defense Industrial Complex»
  8. Decree of the Government of the Russian Federation of May 16, 2016 No. 425–8 «On approval of the state program of the Russian Federation» Development of the defense industrial complex»
  9. Napolnov M. A., Shcheglov D. K., Timofeev V. I., Chirikov S. A. Analysis of the experience of conversion in the Soviet defense industry//Bulletin of Education and Science Development of the Russian Academy of Natural Sciences, 2020, No. 24 (4). P. 93–103.
  10. Malkov A. Defense industry: Between the state plan and the market//Vedomosti magazine. 2016. (Accessed date 27.06.2021)
  11. Bakulina A. A., Nazyrova D. R., Topchiy P. P. Financing the production of civilian products at the enterprises of the military-industrial complex: transformation of business processes//Economic sciences. 2019. No. 173. P. 125–131.
  12. Shcheglov D. K., Chirikov S. A., Ryabokon M. S., Andreev I. A., Timofeev V. I. Experience in conducting interdisciplinary search studies of ways to develop the production of civilian products in vertically integrated structures of the military-industrial complex//Innovations. 2021. No. 2 (268). P. 30–40.