Russian Arms Manufacturer Sues Ministry of Defense for Over $1 Million

Written by Kathrine Frich

Jan.06 - 2025 11:48 AM CET

World
Photo: Shutterstock
Photo: Shutterstock
The reasons behind the lawsuit remain undisclosed.

Trending Now

TRENDING NOW

The Degtyarev Plant, a cornerstone of Russia’s arms manufacturing industry, has long been synonymous with the country’s military strength.

Located in Kovrov, Vladimir Region, the plant produces a range of firearms and heavy weaponry essential to the nation’s defense forces.

From machine guns to anti-tank systems, its contributions to Russia’s military capabilities are both historic and ongoing.

The Degtyarev Plant recently filed a lawsuit against the Russian Ministry of Defense, demanding over 100 million rubles (approximately $1.1 million USD) in unpaid funds, according to URA.

This legal action, initiated on November 2, 2024, marks yet another chapter in the plant's ongoing financial disputes with the ministry.

While court documents confirm the claim, the reasons behind the lawsuit remain undisclosed.

This is not the first time the Degtyarev Plant has taken legal action against its primary state client.

In December 2024, an Arbitration Court ruled in favor of the plant, ordering the Ministry of Defense to pay 146 million rubles (about $1.6 million USD) for unresolved debts.

These repeated conflicts hint at potential systemic issues within the defense sector, where strained budgets and delayed payments are becoming a recurring theme.

Founded as a leading producer of military hardware, the Degtyarev Plant manufactures weapons such as Kalashnikov PKM machine guns, RPG-7 grenade launchers, and KPVT heavy machine guns.

These items remain critical for Russia's armed forces, especially during periods of heightened military activity.

The plant, with a charter capital of 1.7 billion rubles (about $18 million USD), plays a vital role in sustaining the country’s defense operations.

Despite its strategic importance, the plant’s financial disputes with the Ministry of Defense raise concerns about stability within the defense manufacturing sector.

Observers suggest these conflicts could disrupt production schedules and strain relationships between state suppliers and government clients.