At the core of the problem is the way Russia funds its big weapons
budget. The government doesn’t release the funds for new systems until
they’re completed, forcing producers to borrow from commercial banks --
usually under government guarantee -- to cover costs before then. But
the rates on those loans average about 10% a year, according to
government data, leaving the companies with huge debt costs.
Putin's Huge Military Buildup Leaves Industry With Debt Hangover