Russian arms conversion and its impact on the energy problem
by Vadim Nikolajew
International Journal of Global Energy Issues (IJGEI), Vol. 8, No. 5/6, 1996

Abstract: Conversion of the Russian arms industry to civil production poses a key issue in the overall context of the problem of economic transformation. Its impact is enormous and bears upon the energy problem in several ways. If it succeeds the conversion will largely determine the nature of economic development in Russia and the CIS, influence the prospects of economic recovery in eastern Europe in a positive way, and play a substantial role in securing Russia's future place in the world economy. Because of the novel opportunities provided by market reforms, which generally increase production efficiency and enable profound structural changes towards the environmentally benign energy consumption, the consequences of arms conversion should be put under closer scrutiny. At the same time the possibility of using the idle capacity of arms industries to revamp the energy sector itself and to enhance the construction of modem infrastructures to run an efficient market economy deserves greater attention. Although great uncertainties exist when one attempts to assess the impact of arms conversion, nonetheless, new opportunities for Western investment and trade should be pointed out. Hence, one should highlight the problem as worthy of closer monitoring.

Online publication date: Mon, 14-Jul-2014

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