In spite of the economic crisis in Russia, military aviation potential remains high. Russian military aircraft account for half of all revenues from arms exports.
Design bureaus continue to put out competitive jets and helicopters.
At the same time, combat readiness is low for lack of resources. The Russian Government put forward plans for industry consolidation that would trim expenses for design and production of both civilian and military aircraft. In an attempt to replenish falling sales of military equipment, Russian defense enterprises have come up with an increasing number of conversion projects that could be viewed as potentially good opportunities for U.S. export-oriented companies. Prior to 1992, the military and civil aviation industries in the former Soviet Union were wholly owned by the state and strictly regulated. Design bureaus were separate from serial production facilities where aircraft were mass-produced.