The USSR was a hypermilitarized economy optimized for the needs of the maximum war production. In its final decades, it supported the largest military and the largest machine tool industry in the world. In 1991, the USSR collapsed, leaving the Russian Federation with an outsized army and military industry it could not realistically maintain. Going through a crisis, Russia had little choice but to cut its military spending[1]. As the government reduced its purchases from the domestic military industry (State Defense Order) to almost zero. Most of the Russian military industry was financially ruined and was to lay in ruins for more than a decade[2].
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