Russian defence companies are facing a growing number of law suits over unpaid bills, as a liquidity crisis grips the sector. The Kremlin has placed Russia's economy on a war footing and ramped up production of military equipment.
Putin's government is investing a massive US$145 billion (£107bn) in defence spending for this fiscal year, which represents 6.3% of Russia's GDP. Yet despite the huge inflows of cash into the sector, many companies appear unable to pay their bills, prompting suppliers to take them to court. In the most recent case, Magnitogorsk Iron and Steel Works (MMK) filed its third lawsuit in two months against Uralvagonzavod (UVZ).