Arms Export Strategy as a Cause of Russia's Military Decline

Dmitry Gorenburg writes on Russia's military and does a great job of following the developments in that sphere.  In a recent blog post he discusses one of the implications of Serdyukov's prosecution for corruption and ouster as defense minister.

It seems that the new leadership team at the MOD has decided to stop using the threat of importing armaments from abroad to get Russian defense industry to improve the quality of its products. 

One of the interesting implications of the whole affair is summed up in the last paragraph of his post.

In the meantime, however, the defense industry’s defeat of Serdyukov reduces the likelihood that the military will get the equipment it needs. It will take time for the MOD to amass the political capital to fight back against the industry and its allies. The result will be that the industry will get its money, while the military will be promised new equipment that in many cases will not arrive on schedule. In a few years, the military’s situation will get even worse, while the MOD will have rebuilt some of its lost political capital.

One of the primary reasons that the US and Soviet Union (and now Russia) are the world's largest arms exporters is that there has been a large internal demand for those weapons.  If Russia's military collapse continues will it be as a result of a focus on using domestic weapons?  Those weapons slated for the Russian military (that are not delivered to domestic customers for various reasons related to the export focus of the industry) could lead to a lack of development of new weapons systems for the internal market.

This particular internal dynamic could lead to an interesting shift in the overall patterns of arms sales.