Russia's Arms Empire Collapses in Humiliation - Jason Jay Smart
Russia is selling its gold reserves to survive as its arms industry collapses.
In this video we analyze how the Russian arms industry has entered a historic collapse that is forcing the Kremlin to liquidate its national savings. For decades Moscow funded its global influence by selling tanks, aircraft and missiles abroad. Before the full scale invasion of Ukraine Russian weapons exports brought in roughly 14.6 billion dollars a year and made Russia the second largest exporter on earth. Today independent data shows that revenue has fallen close to 1 billion dollars. Russias share of the global arms market has been cut by more than half as clients turn to the United States, France, South Korea and Israel instead.
The industrial failure was visible at the Dubai Airshow 2025 where Russian firms showed plastic mock ups of the Su 75 Checkmate and recycled Su 57 prototypes instead of real export fighters. Long term partners in India are facing years of delays on S 400 air defense systems while reports of engine talks with Pakistans JF 17 signal a desperate scramble for cash that undermines decades of trust.
Behind the scenes the Kremlin is burning through the National Wealth Fund. Before the war it held over 400 metric tons, about 441 short tons, of gold. By November 2025 that stock had fallen by more than half and the Central Bank is now selling physical gold bars into the domestic market to fill the budget gap and keep the war machine running. Arms exports are collapsing and oil revenues are shrinking while the sovereign fund is being stripped. What was sold as the second army in the world is being revealed as a Potemkin superpower held together with fake jets and disappearing gold.
CHAPTERS:
00:00 - Intro: Russia's Collapse is No Longer Theoretical
01:07 - Crisis Funding: Oil, Weapons, and the Kremlin's Desperation
02:40 - Industrial Cardiac Arrest: Russia's Arms Market Obliterated
03:31 - The Shrinking Client List: From 31 Buyers to Competing with Italy
06:37 - Mock-Up Military: Russia's Humiliation at the Dubai Airshow
08:31 - India Betrayed: S-400 Disaster and Arming Pakistan
11:03 - The Final Reserve: National Wealth Fund and Gold Liquidation
13:03 - Terminal Event: The Potemkin Superpower Runs on Fumes
14:30 - Outro