The key in both cases has been acceptance in the world market. The first group makes arms for export. Early in the post-Soviet era, expectations regarding Russian arms exports were exaggerated, and arms sales were disappointing. Today, grounds for cautious optimism exist. Nations such as China, South Korea, Malaysia, and India want serviceable weapons at a low price, and all have recently concluded arms deals with Russia.
Weapons are already Russia's largest manufactured export.
Several cautionary notes, however, are necessary. First, many of the Russian arms sold in recent years have come from inventory and reflect only previous production. It has not yet been proven that Russian arms produced under today's conditions can be as good, and as competitively priced, as they once were. A second group of enterprises is gaining world market acceptance by participating in joint ventures with established Western firms. Some of these cooperative deals, especially in electronics and aerospace, have garnered much publicity.