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Study: Embargo wouldn’t hurt Russia

DANICA KIRKA
Associated Press

LONDON (AP) — An arms embargo against Russia would be little more than symbolic because Russia is largely self-sufficient in supplying its armed forces, a report argued Sunday.

European Union countries exported $583 million of military equipment to Russia last year, less than 1 percent of the nation’s $68 billion defense budget, according to a study by IHS Jane’s, which provides analysis on the defense industry and security issues. The bulk of that was a $521 million payment to France, which is building two Mistral class warships for Russia.

The propriety of arms sales to Russia was questioned last week as the U.S. and EU debated tougher sanctions against President Vladimir Putin’s government because of its support for Ukrainian rebels, who are believed to have fired the missile that brought down Malaysia Airlines Flight 17, killing all 298 people on board.

Many of the existing arms deals are the product of a brief period between 2010 and 2012, when Russia sought Western help in modernizing its military, said Guy Anderson, a senior principal analyst for aerospace, defense and security at IHS Jane’s. Putin reversed that strategy in 2012, when he decided that Russia should be self-sufficient once more and ordered the military to stop buying Western materiel.

“Russia’s reason for doing this was security,” Anderson said. “You could probably argue they saw something like this coming.”

The Jane’s analysis shows that Russia wasn’t even among the world’s top 10 defense importers last year — though it was the No. 2 exporter behind the United States.

There are no EU countries among the top 10 buyers of Russian military material.

While Russia hasn’t bought much strictly military equipment, it purchases a considerable amount of dual-use technology such as engines that can be used in both civilian and military vehicles, said Trevor Taylor, a professorial fellow at the Royal United Services Institute.

The IHS Jane’s analysis covers only equipment with a purely military function. It also excludes weapons under 57 mm calibre or sub-components.

The European Union, in a discussion paper on possible actions against Russia, suggested that banning shipments of dual-use goods to military users and companies that operate in both the military and civilian sectors could be an “effective and targeted measure.” EU exports to Russia in this category total about 4 billion euros, or 20 percent of dual-use exports to the country, according to the paper.

Russia is decreasing imports at a time when it is increasing military spending. The country’s defense budget, the world’s third-biggest behind the U.S. and China, is set to jump by more than 40 percent to $98 billion by 2016, according to IHS Jane’s.

When the Russian economy collapsed following the breakup of the Soviet Union, military budgets fell as well. In recent years, Moscow launched a desperate bid to revive its defense industries and embarked on a massive re-armament program designed to totally re-equip its forces by 2023.

The Russians were obsessive in their drive to go it alone, with the military barred from importing weapons, or even the equipment used to make them, unless absolutely nothing at home was suitable, Anderson said.

“It got down to the level of machine tools,” he said. “Even the lathes have to be Russian.”

In some ways, Putin’s decision is a return to the situation during the Cold War, when the Soviet Union was barred from doing business with Western defense contractors.

After the collapse of communism, Western governments decided that Russia should become a partner in controlling arms exports around the world, rather than a subject of those controls.

A U.K. parliamentary committee last week questioned why British companies were being permitted to sell 132 million pounds ($224 million) of military equipment, including components for anti-aircraft guns, to Russia. The government said it would examine the deals but that many were for legitimate, non-military uses.

Yet among the military contracts, France’s carrier deal stands out. France was able to capitalize on the brief opening of the Russian market by signing a 1.2 billion euro contract for the two Mistral class helicopter carriers, securing jobs for hundreds of workers in its struggling shipyards.

British Prime Minister David Cameron has pressed the French to rethink the deal, saying it would be “unthinkable” for his country to fulfill such a contract given events in Ukraine.

“It’s very difficult for France,” Taylor said. “When they sighted this deal, no one was envisioning the situation in the Ukraine. That was not on the risk register for sure.”

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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