The war in Chechnya is another long standing pecuniary bonanza - and a
vested interest of many generals. Senior Russian Interior Ministry
field commanders trade (often in partnership with Chechen "rebels") in
stolen petroleum products, food, and munitions.
Putin is trying to reverse these pernicious trends by enlisting the
(rank and file) army (one of his natural constituencies) in his battles
against secessionist Chechens, influential oligarchs, venal governors,
and bureaucrats beyond redemption.
As well as the army, the defense industry - with its 2 million
employees - is also being brutally disabused of its
centralist-nationalistic ideals.
Orders placed with Russia's defense manufacturers by the destitute
Russian armed forces are down to a trickle. Though the procurement
budget was increased by 50% last year, to c. $2.2 billion (or 4% of the
USA's) and further increased this year to 79 billion rubles ($2.7
billion) - whatever money is available goes towards R&D, arms
modernization, and maintaining the inflated nuclear arsenal and the
personal gear of front line soldiers in the interminable Chechen war.
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