Kathrine Frich
Moscow is facing a costly dilemma in one of its most important defence partnerships.
A leaked document suggests Russia may be forced to absorb major losses on fighter jet components to preserve ties with China.
The disclosure sheds light on growing pressure inside Russia’s arms industry as production costs rise and export prices remain frozen.
Costs surge sharply
A classified document published by Ukrainian media indicates that Russia is producing parts for Su-27 and Su-30 fighter jets at sharply increased costs.
According to United24Media analysts, component prices have risen by almost 200 percent since 2022.
The rise comes as Russia’s economy remains under strain, raising concerns that aircraft sold at older prices could now be loss-making. The Su-27, a cornerstone of Russia’s modern combat aviation, is among the aircraft affected.
Analysts say Moscow now faces a difficult choice between protecting profits and maintaining strategic relations with Beijing.
Contract under pressure
Correspondence dated March 7, 2025, and disclosed by United24Media, shows a representative of the United Aircraft Corporation writing to the director of a factory producing fighter components.
The letter refers to a contract signed on November 8, 2024, with “Foreign Customer 156,” identified as China.
According to the document, Russia’s export logistics firm JSC “NASK” has been unable to present a price offer that would satisfy both Russian authorities and the Chinese buyer.
The current price framework is based on levels agreed between Moscow and Beijing in 2016.
The correspondence states that production costs now exceed the original contract prices by more than eight times.
Risk of collapse
The letter warns that raising prices could jeopardise the entire deal.
“The client reacts negatively to sudden price fluctuations, and an unjustified proposal to increase contract prices will be treated as an unwillingness to develop long-term partnerships,” the document says.
It adds that such a move could result in the contract not being signed at all.
To avoid that outcome, the letter orders a recalculation and a price cut of 65.7 percent, bringing costs back to levels close to previous agreements.
Only “objectively justified” deviations from the older prices were deemed acceptable.
Sources: United24Media, Ukrainian media, Wirtualna Polska
