Russia’s military-industrial complex (MIC) is dominated by a few state-controlled conglomerates, comprising numerous subsidiaries, many of which remain unsanctioned despite their critical role in military production. This thematic report highlights the leading corporate groups driving Russia’s MIC and reveals major gaps in sanctions coverage.

The analysis is based on a proprietary database of over 5,500 companies, including more than 3,400 active enterprises and over 850 army entities. The industry is highly concentrated, with 52% of total assets controlled by the top ten corporate groups. State-owned giants like Rostec, Almaz-Antey, KTRV, Roscosmos, and Rosatom dominate critical sectors and operate as vertically integrated groups, covering all stages of production.

Rostec, Russia’s largest military conglomerate, comprises over 800 companies, with this analysis identifying 719 active entities involved in research, components manufacturing, IT, and other sectors. In 2023, Rostec ranked as the world’s seventh largest arms producer, with revenues growing nearly 50%. According to Rostec, 90% of its output supports Russia’s military efforts. About 76% of its contracts are internal, ensuring control over supply chains and stable deliveries to the Ministry of Defense and other military organizations.

Tactical Missiles Corporation (KTRV) specializes in high-precision missiles, including air-to-air, air-to-surface, and air-to-ship missiles, torpedoes, and guided bombs. It provides critical weapons and maintenance services to the Ministry of Defense and supports Roscosmos with research services. As a buyer, KTRV procures tools, machinery, components, and metals.

Almaz-Antey focuses on missile systems, air defense platforms, and radar production. It supplies radio equipment and software to the Ministry of Defense and government agencies for air traffic control, and maintains contracts with Roscosmos. Around 22% of its contracts are internal, ensuring control over critical supply chains. 

Rosatom plays a key military role through its production of highly enriched uranium, plutonium, and reactors for nuclear submarines and icebreakers. The corporation has maintained control over the Zaporizhzhia Nuclear Power Plant since March 2022, aligning it with Russia’s broader military objectives.

Roscosmos, primarily known for space exploration, also plays a strategic role in Russia’s military industry. It oversees the production of submarine-launched ballistic missiles and develops guidance, navigation, and flight control systems for missiles, including those used against civilians and energy infrastructure in Ukraine.

Sanctions coverage. Despite their central role, many MIC companies remain unsanctioned. Roscosmos and Rosatom, as well as key subsidiaries within Rostec and Almaz-Antey, are notably absent from Western sanctions lists. 

Within Rostec, several key defense holdings—such as Uralvagonzavod, Russian Helicopters, High-Precision Complexes, and ODK—have had most of their entities sanctioned. However, large parts of the conglomerate, including Roselektronika, KRET, UAC, Shvabe, and Tekhnodinamika, remain largely untouched by Western sanctions. Aircraft alloys supplier VSMPO-AVISMA has not been designated by the US or EU. Many Almaz-Antey subsidiaries, including Kometa Corporation, remain unsanctioned. Critical suppliers to Roscosmos and Rosatom, such as RKK Energiya, VNIIEM, and Zlatmash, have not been sanctioned.

This incomplete targeting of corporate groups leaves significant gaps in enforcement, enabling Russia’s MIC to maintain supply chains and continue military operations. KSE Institute’s analysis highlights the need for broader, more comprehensive sanctions covering all critical entities, including subsidiaries and dual-use sectors, across all sanctions coalition jurisdictions.

This analysis is part of KSE Institute’s broader research on Russia’s military-industrial complex. More details are available in the full report: https://t.ly/dl_D3