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US sanctions lead to Kalashnikov strategy revision

August 07, 2014, 15:07 UTC+3 MOSCOW

The ban on Kalashnikov sales in the U.S. provoked a flurry on the American weapon market

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© ITAR-TASS/Sergei Karpov

Infographics Economical sanctions against Russia

Economical sanctions against Russia

The USA, EU, Canada and Australia have introduced sanctions against Russia over its involvement in the Ukrainian crisis. Infographics by ITAR-TASS
MOSCOW, August 07. /ITAR-TASS/. Third stage of U.S. sanctions that affected some of Rostec corporation holdings necessitated strategy revision for weapon concern Kalashnikov, the corporation’s spokesperson Vasily Brovko said on Thursday.

“90% of civil weapon sales went to the U.S. But we already understand where we could reorient sales. These volumes can be compensated,” he said. There were weapon reserves in the U.S. warehouses, he added.

As new shareholders came to the company, Kalashnikov started the program to boost efficiency, in particular optimization of three quarters of the company’s areas, Brovko said.

The ban on Kalashnikov sales in the U.S. provoked a flurry on the American weapon market. As Americans started buying up the concern’s products, the U.S. Department of the Treasury announced Americans who had Kalashnikov’s weapons could retain and even resell them if the weapons had been entirely paid for. The ban affected only new supply contracts.

Kalashnikov expressed sympathy for American consumers.

“This situation is yet another sign that our weapon is very popular with Americans, and the sanctions imposed contravene their interests,” said the concern’s press secretary Yekaterina Boni.

The concern used to supply to the U.S. hunting and sports weapons, including the popular Saiga rifle - the civil equivalent of AK-47 rifle. Kalashnikov also supplied Saiga-12 shotguns for the U.S police.

On July 16, the U.S. Department of the Treasury introduced an additional sanctions list with several new Russian and Ukrainian individuals and companies and organizations, in particular four Rostec holdings, among them Kalashnikov.

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