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Improving financial mechanisms for the military and technological cooperation of the CSTO member States with reference to the EU case

Vol. 16, Iss. 2, FEBRUARY 2020

Received: 10 December 2019

Received in revised form: 26 December 2019

Accepted: 18 January 2020

Available online: 14 February 2020

Subject Heading: INTERNATIONAL ECONOMIC RELATIONS

JEL Classification: F02, F53, F55

Pages: 383–396

https://doi.org/10.24891/ni.16.2.383

Degtereva E.A. Institute of Europe, Russian Academy of Sciences, Moscow, Russian Federation
degtereva_ea@pfur.ru

https://orcid.org/0000-0002-8752-5840

Chernysheva A.M. Peoples' Friendship University of Russia (RUDN University), Moscow, Russian Federation
chernysheva_am@pfur.ru

https://orcid.org/0000-0002-9240-6619

Subject The Collective Security Treaty Organization (CSTO) became an important integration project for Russia, ensuring the military security in the region. Russia actively leads the establishment of such organizations, as it tries to secure it dominance in the region and retain allies along its borders.
Objectives The study examines financial mechanisms of the military and technological cooperation among the CSTO member States and the possibility to rely upon the EU experience. Export credit is supposed to be the most appropriate option, since it allows to influence the recipient country and envisages the repayment.
Methods To verify the hypothesis, we analyzed documents in public domain, including statistical data on armaments supplies. We reviewed such supplies from Russia to Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, including those ones financed with export credit, gratuitous aid in exchange of certain preferences, purchase at special prices, gratuitous aid as part of the formation of the single Missile Defense Systems, production cooperation, and the establishment of the European Defence Foundation. Considering the improvement of financial mechanisms for the military and industrial cooperation among the CSTO member States with reference to the EU experience, we apply the systems approach, comparative and statistical methods of research.
Results As the CSTO countries actively purchase armaments, Russia acts as an active player in this process, with the expert credit mechanism being the most effective format of the military and economic cooperation.
Conclusions and Relevance Generally, the CSTO member States can run the single defense fund as a new financial mechanism.

Keywords: CSTO, military product, military-technical cooperation

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