THE COSTS OF SOVIET INVOLVEMENT IN AFGHANISTAN

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February 1, 1987
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Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Directorate of Intelligence in Afghanistan The Costs of Soviet Involvement SOV 87-10007 February 1987 COPY 369 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Directorate of Secret Intelligence in Afghanistan The Costs of Soviet Involvement This paper was prepared by Office of Soviet Analysis, South Asian Analysis; Office of Global Issues SOVA Comments and queries are welcome and may be directed to the Chief, Defense Economics Division, Reverse Blank Secret SOV 87-10007 February 1987 25X1 25X1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 secret The Costs of Soviet Involvement in Afghanistan 25X1 Key Judgments Soviet leaders continue to express frustration over the protracted war in Information available Afghanistan. This was evident at the party congress in February 1986 as of 31 October 1986 when General Secretary Gorbachev referred to the war as a "bleeding was used in this report. wound." Soviet involvement in Afghanistan has led to periodic censure within the United Nations, become a stumblingblock to improved Sino- Soviet relations, and complicated Soviet policy toward nations in the nonaligned movement. At home, pockets of social unrest related to Afghanistan, the diversion of energies from pressing economic problems, and dissatisfaction in the political hierarchy over the failure to end the war also probably worry the leadership. The war has not been a substantial drain on the Soviet economy so far, al- though the costs of the war have been rising faster than total defense spending. We estimate that from their initial invasion in December 1979 through 1986 the Soviets have spent about 15 billion rubles on the conduct of the war. Of this total, about 3 billion rubles would have been spent over the seven-year period even if the USSR had not occupied Afghanistan. Our estimate of total costs is more likely to be high than low. In calculating the total, we used the high side of a range of estimated aircraft losses; use of the low estimate for aircraft losses would reduce our estimates of the to- tal cost of the war by nearly 2 billion rubles. the United States in the peak year of 1968. Measured in dollars-what it would have cost the United States to procure, operate, and maintain the same force in Afghanistan-we esti- mate that the total cost through the seven years of the war has been less than $50 billion. This is only 75 percent of what the war in Vietnam cost ? They have increased the commitment of troops only gradually. Manpow- er levels have risen from 80,000 in 1980 to the present in-country strength of approximately 120,000. Secret SOV 87-10007 February 1987 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 secret ? The Soviets have used conservative tactics to minimize human and materiel losses. We estimate they have suffered 30,000 to 35,000 combat casualties, a third of whom died. Much of the equipment and expenda- bles has been drawn from old stocks. ? Soviet supply lines to Afghanistan are relatively short, often shorter than some that serve Soviet troops within the Soviet Union. ? The Afghan Government has been required to pay for most arms and some of the economic assistance it receives from the USSR with natural gas transfers. The total value of this aid-3.5 billion rubles-is, there- fore, excluded from our 15-billion-ruble estimate of the total cost of the war. Soviet costs, although relatively low, have been growing steadily. In both 1985 and 1986, Moscow spent nearly 3 billion rubles on the conduct of the war, or some 2 to 2.5 percent of total defense spending, compared with an average of about 2 billion rubles over the previous five years. While this is still low in relative terms, as an increment to the total defense budget it is beginning to take on increasing significance. Much of the rising cost of the war is traceable to increases in Soviet air operations and the resulting higher aircraft losses. During 1984 and 1985 the Soviets may have lost more than 300 aircraft from all causes. Nearly 90 percent of these were helicopters. In 1985 the replacement cost of the helicopters estimated to have been destroyed in Afghanistan amounted to 35 percent of total Soviet military helicopter procurement costs in that year. These factors have more than offset the savings from the substantial reduction in ground forces combat activity that occurred in 1986 as part of the Soviet policy of turning more of the combat burden over to the Afghan army. The costs of the war appear likely to continue their gradual rise. Construction, force augmentations, and Soviet employment tactics all indicate that the increased emphasis on air operations observed since 1983 will continue for at least another year: ? Analysis of improvements occurring at airfields in Afghanistan suggests that they are probably intended to support new aircraft deliveries, expand logistic capabilities, and improve security. ? The number of Soviet helicopters in Afghanistan is increasing, and air operations during 1986 exceeded those of 1985. Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 ? Helicopters are being used more extensively in support of Soviet special forces to seek out and attack insurgent groups. Despite the increasing trend, however, the economic costs resulting from these operational developments are unlikely, in our view, to be of sufficient magnitude to constitute a significant counterweight to the political and security implications the Soviets would attach to withdrawal under circum- stances that could be seen as a defeat. Indeed, we believe the recent rising trend in economic cost is more a reflection of determination in Moscow to counter a better armed insurgency and thus shows continued willingness to incur whatever burden is necessary Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 The Soviet Commitment of Manpower and Materiel The Costs of Military Operations in Afghanistan 5 Organizational Equipment 9 Soviet Military Manpower in Afghanistan, 1980 and 1986 Soviet Equipment Losses in Afghanistan, 1980-85 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret Scope Note in Afghanistan This pa- 25X1 25X1 per presents the results of a comprehensive review of the methodology and data used to generate the manpower, materiel, activity levels, and costs associated with the Afghan war. It traces the trend in, and the costs of, Soviet involvement during seven years of the war from 1980 through 1986; briefly describes the findings of new research into activity levels, expendi- tures of supplies and equipment, construction of facilities, and personnel costs; and measures the impact of these costs on the military as a whole. Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret The Costs of Soviet Involvement in Afghanistan years. In 1979, against a background of slowing economic growth and military spending, the Soviet Union in- vaded Afghanistan to support a fledgling Marxist government threatened by civil war and imminent collapse. Moscow's basic goal was to ensure the continuation of a pro-Soviet Communist regime that could rule the country on its own without a large Soviet military presence. At the time, the Soviets referred to the invasion as "limited" and "tempo- rary," hoping that the accession of a more moderate regime in Kabul under Babrak Karmal, coupled with the Soviet military presence, would intimidate the insurgents, bolster the Afghan army, and enable most of the Soviet troops to withdraw within a couple of istan. Seven years later, the Soviets find themselves bogged down in a guerrilla war, the Soviet-installed regime in Kabul remains weak and ineffective, and the Afghan military remains incapable of quelling a resistance that has grown substantially in numbers, effective- ness, and popular support. Soviet officials now pri- vately concede that their leadership miscalculated the difficulties of achieving their goals and underestimat- ed the long-term costs of their involvement in Afghan- In estimating the ruble cost to the Soviets of their involvement in Afghanistan, we first estimated the costs that are common to all military forces. These include outlays for military personnel, normal opera- tions and maintenance, construction, and the procure- ment of equipment and supplies. We then estimated the incremental costs-those unique to a wartime situation such as the replacement and repair of large quantities of equipment destroyed and damaged; the expenditure of ammunition; and extraordinary medi- For manpower and order of battle, we have high confidence in our estimates. We have much less confidence in our estimates of equipment losses and of consumption of petroleum, oil, lubricants (POL), and ammunition Our estimates of the cost of Soviet military activities in Afghanistan for 1986 are preliminary. F_ These estimates, therefore, are less certain than those for the period 1980-85 Since the invasion in December 1979, the Soviets have increased the number of troops and the quantity and quality of weapons deployed in Afghanistan. Concurrent with the increases, the Soviets shifted their tactics from massed combined-arms sweeps to increasing reliance on small-unit operations, depopu- lation of key resistance areas, and control of insurgent access through the border provinces. Though this shift was probably driven by military and political consid- erations, it has kept the war a relatively low-cost effort. Manpower In mid-1980 the Soviets had approximately 80,000 troops in Afghanistan. By mid-1986 this figure had increased to about 120,000 (see table 1). Those Soviet military personnel in the USSR who support the fighting full-time are estimated to have increased from 20,000 to 40,000 during the period 1980-86 cal, operating, and construction costs. 25X1 2bAl 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Table 1 Soviet Military Manpower in Afghanistan, 1980 and 1986 1980 1986 Percent Increase Combat personnel 49,000 74,500 52 Rear services and support personnel 21,500 30,000 40 Combat personnel Rear services and support personnel Of the 120,000 Soviet troops in country, less than half are available for offensive action because of the need to deploy some units semipermanently to defend major bases and lines of communication. We estimate that the current in-country troop strength is inade- quate to neutralize the insurgency and gain control of the country. The Soviets clearly have the capability to increase substantially their forces in Afghanistan. Instead, they have increased their troop strength only moderately over the years. This approach has kept Soviet combat casualties low. We estimate that over the seven-year period 1980-86, the Soviets suffered 30,000 to 35,000 casualties, a third of whom died. Largely as a result of their changed tactics, the Soviets have been somewhat more successful since 1985 in accomplishing those missions necessary to cope with the insurgency, including: ? Reducing the flow of outside aid to the insurgents. ? Actively seeking out and engaging insurgent groups rather than waiting for them to strike. ? Detecting movement in advance of an attack and moving troops rapidly enough to intercept and en- gage insurgent units. ? Undermining the insurgents' civilian base of support. ? Building up the ability of the Afghan military to uncertainty is inherent in these data, especially with respect to aircraft losses. Often, no distinction can be made between Soviet and Afghan equipment or be- tween destroyed and damaged equipment. F_ These unknown data are needed for calcula- tions o replacement costs, so they must be estimated. During the period 1980-85 the USSR slowly in- creased and modernized its equipment holdings in Afghanistan, partly in response to the stepped-up tempo of the insurgency and partly in line with the policy of overall force modernization he Soviet fighter/fighter-bomber aircraft order of battle increased by about 65 percent during this time and the number of helicopters by about 20 percent. The greatest total increase in aircraft (both fixed and rotary wing) occurred in 1984 and 1985 as a result of stepped-up air attacks on Mujahedin forces. The air force was also modernized as older MIG-21s and MI-8s were replaced by newer, more capable MIG-23, SU-17, and MI-24 aircraft. In 1981 the first squadron of SU-25s-the Soviets' newest ground at- tack aircraft-appeared in Afghanistan (see figure 2). The pace of introduction of newer, more capable equipment for the ground forces in Afghanistan was slower than that for the air forces. From 1980 through 1985 the number of major items of equipment in- assume a more active role in the fighting. 25X1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret The Soviet forces' need for tanks in Afghanistan is relatively small, and the opportunities for their use are limited. Much larger numbers of armored personnel carriers (APCs) are used, principally for escort duty and perimeter patrol. BTR-50 and BTR-60 armored per- sonnel carriers were replaced with BTR-70s, which provided greater protection for convoys that were 25X1 under more frequent attack by the insurgents as the 25X1 war progressed. The BMP-2 with its 30-mm automat- ic cannon is better suited for convoy protection than is the old BMP with its 73-mm smoothbore gun, and the25X1 Soviets added more than 500 BMP-2s between 1980 and 1986. Self-propelled artillery holdings increased Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret Figure 2 Soviet Aircraft in Afghanistan MI-24 Attack Helicopter. Provides fire support with a mixture of 12.7-mm and 30-mm guns, 57-mm and 80-mm rockets, and A T-3 and A T-6 antitank missiles. MI-6 Heavy Lift Transport Helicopter With BMD-1 Airborne Combat Vehicle. The MI-6 is the largest helicopter used in Afghanistan. However, its poor performance at higher altitudes and temperatures and its vulnerability to attack keep it from being used as an assault troop carrier. SU-25 Frogfoot Ground Attack Aircraft. Used to attack insurgent positions, it has a payload of 10,000 pounds. It is armed with 30-mm cannon, 57-mm and 80-mm rockets, and assorted bombs. Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret as part of their table of equipment in 1984 and 1985 as part of the modernization effort occurring throughout the Soviet forces. At the same time, the Soviets began to expand their inventory by placing artillery in units that normally did not have it The Costs of Military Operations in Afghanistan Figure 3 Soviet Costs for Afghan War: Distribution by Resource Category, 1980-86a Construction 2 and maintenance (O&M). We estimate that, from late December 1979 through December 1986, the Soviets spent about 15 billion rubles on the direct conduct of the war (to put these outlays in perspective, we estimate that in 1982, the Soviet military spent 8-9 billion rubles for aircraft procurement alone).' Figure 3 shows the distribution of these costs by the major resource categories of procurement, construction, personnel, and operations A dollar valuation of the Soviet activities in Afghani- stan for 1980-86 is about $48 billion in 1984 prices or an average annual year (1968) outlay of $65 billion. cost of about $7 billion. This amount is calculated by applying prevailing US prices and wages to the Soviet activities in Afghanistan: the US cost of procuring the same supplies and equipment, maintaining the same military force in Afghanistan, and operating that force in the same manner as the Soviets. Over the 13-year period 1964-76, the United States spent the equivalent of nearly $330 billion (in 1984 prices) on its involvement in Southeast Asia. On an average annual basis, US outlays were four times greater than those of the USSR for its involvement in Afghanistan. The dollar value of the Soviet peak-year (1986) outlay in Afghanistan is less than 15 percent of the US peak- Since the invasion of Afghanistan in 1979, the war has become increasingly costly to the Soviets. Over the past seven years they have built up their weapons inventories, experienced greater aircraft and equip- ment losses, and sharply increased their use of ammu- nition. In 1980 the USSR spent about 1.5 billion rubles, or 1.5 percent of its total defense budget, on Afghanistan. Outlays grew at an average annual rate Operations and maintenance 30 Personnel 19 Procurement 49 Ammunition 24 Equipment replacement 19 Organizational equipment 6 of 12 percent, so that by 1985 total expenditures amounted to 2.7 billion rubles and took about 2.5 percent of the total. Combat activity by Soviet ground forces in 1986 was substantially reduced as part of the Soviet policy of turning more of the combat burden over to the Afghan army. In terms of ruble outlays, the cutback by the ground forces has been more than offset by increased air forces activity and related expenditures. These increases do not extend to air- craft losses, however, where we estimate the Soviets suffered fewer losses in 1986 than in 1985. Our preliminary estimate of costs for 1986 shows only a slight increase over those for 1985. Of the 15 billion rubles of total estimated costs through 1986, about 12 billion rubles are expenses directly incurred by the war for such things as equipment losses, ammunition expended, shipping Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret costs, and out-of-country pay. The remainder repre- sents the peacetime costs of the forces that are deployed to Afghanistan-costs that would have been incurred even without the war. Our estimate of total costs through 1986 is more likely to be high than low. In calculating the total, we used the high side of a range of estimated aircraft losses Use of the low estimate for aircraft losses would reduce our estimate of the total cost of the war by nearly 2 billion rubles. Together, these lower estimates amount to one-half a Figure 4 Soviet Expenditure of Ammunition in Afghanistan, 1980-86 percent of cumulative a Soviet defense spending for the 40 The estimate of total expenditures is subject to other uncertainties. Given the varying rates of uncertainty among the many components of the estimate, we calculate that a worst case-where all individual components of the estimate are either understated or overstated to subjectively derived limits-would result in an error of ? 4 billion rubles, or about 25 percent of the total through 1986. Because of the tendency for errors to be partially offsetting, however, the uncer- tainty of our estimate probably is more in the range of ? 2 billion rubles or less. Procurement Over the seven-year period of the estimate, procure- ment accounted for one-half of all Soviet costs. This category includes the costs of ammunition, replacing destroyed equipment, and procuring organizational equipment. For purposes of this estimate we have assumed that the Soviets replaced all destroyed equip- ment with new equipment of the same kind and paid the full replacement cost. Ammunition. The Soviets' largest procurement expen- diture was for ammunition. I I I I I I I 0 1980 81 82 83 84 85 86 We estimate that during the period 1980-86, the Soviets used more than 780,000 metric tons of ground and air munitions at a cost of 3.7 billion rubles. This includes the value of all ammunition, some of which was stolen and some of which was captured or destroyed, that the Soviets shipped to Afghanistan.2 In 1983 they began to rely much more heavily on air operations as a tactical option. This resulted in a dramatic increase in the use of air munitions (see figure 4). Gravity bombs represent the largest catego- ry of air munitions expended. We estimate that Soviet aircraft stationed in Afghanistan dropped more bombs in 1985 than the total they dropped in the first 25X1 25X1 25X1 25X1 6 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 secret Artillery represented the largest category of ground ammunition expended, accounting for nearly 45 per- cent of total ground forces munitions costs throughout the seven-year period. In the early 1980s the Soviets deployed automatic mortars to Afghanistan. In 1984-85 longer range field guns and more self- propelled artillery were brought in. These measures resulted in increased expenditures of ammunition. number lost in each category through 1985. Equipment Replacement. Between 1980 and 1986 we estimate that the Soviets replaced aircraft, armored vehicles, ground forces weapons, tanks, and trucks valued at 3 billion rubles. Aircraft accounted for more than 80 percent of the total. Table 3 shows the There is a wide range in the estimates of the number of Soviet aircraft destroyed in Afghanistan since 1979. The cost estimates in this paper reflect the higher numbers-750 aircraft through 1985. If we used the lower numbers-some 320 aircraft-our cost estimates would be reduced by nearly 2 billion rubles.' Of the estimated 750 Soviet aircraft destroyed from all causes during the period 1980-85, nearly 640, or 85 percent, were helicopters (see figures 5 and 6). The value of helicopters destroyed in 1985 is estimated to be equal to 35 percent of the value of all helicopters procured by the military in that year. Despite the large numbers of helicopters lost by the Soviets in Afghanistan, we did not detect increases in production to make up for these losses. Losses may have been replaced out of existing stocks, delaying the introduc- tion of new equipment into peacetime units, In contrast, we estimate that fewer than 100 fighter and ground attack aircraft were lost from all causes during the period 1980-85. This six-year total is only Table 3 Soviet Equipment Losses in Afghanistan, 1980-85 a Includes field artillery, mortars, and multiple rocket launchers. b Figures for air forces are the high end of a range of estimates. c Includes transports. slightly greater than the annual peacetime training attrition rate of about 70 tactical aircraft for the Soviet Air Forces. The relatively small number of fixed-wing aircraft lost may reflect the difficulty the insurgents have in tracking and destroying Soviet fighters as well as the success of the countermeasures taken by the Soviets to offset growing insurgent capabilities. Preliminary estimates for the year 1986 indicate that Soviet aircraft losses were less than they were in 1985. The value of Soviet ground forces equipment losses in Afghanistan for the period 1980-86 is estimated at nearly 500 million rubles. Most equipment losses occur during attacks on convoys and perimeter pa- trols. Cargo trucks represented the greatest loss in terms of numbers, but they accounted for only about 10 percent of the estimated total value of ground 25X1 25X1 forces equipment destroyed. The largest loss was that of more than 300 tanks, whose replacement cost amounted to 45 percent of the value of all ground forces equipment estimated to have been lost. Other 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret Figure 5 Afghan Insurgents and Their Weapons These weapons are responsible for the destruction of the majority of Soviet aircraft lost in combat. Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret Figure 6 Soviet Aircraft Destroyed in Afghanistan, 1980-86a Q Transports Ground attack Q Helicopters 1980-85. escort vehicles such as APCs suffered relatively high casualties because they are among the first to be targeted in a convoy attack. We estimate that more than 650 of these escort vehicles, valued at 125 million rubles, were destroyed over the period percent of the total. Organizational Equipment. Organizational equip- ment consists of supplies necessary for the smooth operation of any unit. The category includes mess gear, tents, cots, typewriters, communications sys- tems, test equipment, repair manuals, tools, and thou- sands of other'items. The cost of supplying organiza- tional equipment to Soviet troops in Afghanistan through 1986 is estimated at over 800 million rubles, with ground forces accounting for more than 90 Construction During the period 1980-86, Soviet expenditures for construction in Afghanistan amounted to 350 million rubles, or 2 percent of the total. Sixty percent of this amount is estimated to have been spent during the first three years. Construction projects counted in this estimate include pipelines and portable pumping stations; airfield run- ways, taxiways, and parking areas; housing and sup- port areas; and a small thermal-electric power plant. Not included were the costs of repairing damaged roads, pipelines, and facilities. We assume that these repairs were made by Soviet mili- tary personnel, for whom costs are already included in our estimate. Thus, we believe that any additional costs of repair were small Most of the facilities constructed were relatively low cost and semipermanent-for example, storage build- ings, Quonset huts, barracks, tents, and small aircraft hangars. The most costly facilities were 375 kilome- ters of oil-supply pipeline with 46 portable pumping stations, a small 12,000-kilowatt thermal-electric power plant in Kabul, and some new airfield runways and parking areas constructed of pierced steel plank. The facilities that the Soviets use in Afghanistan are barely adequate to support the present force and level of operations. Any significant buildup of forces would require an expansion of these facilities. Personnel Personnel expenditures amounted to 2.9 billion rubles, or 19 percent of the total, during the 1980-86 period. Personnel outlays include pay and allowances, food, clothing, and transportation costs for the 80,000 to 120,000 Soviet troops in country over the seven-year period (including those of the military advisory group) and the estimated 20,000 to 40,000 support personnel in the Turkestan Military District. Forty percent of personnel expenditures represents the out-of-country bonus of double base pay for Soviet career military personnel and the additional cost of food, clothing, and transportation in Afghanistan.F_ 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 We have high confidence in our estimate of personnel costs. We believe it is correct to within ? 10 percent. We have less confidence in other estimates, such as the cost of supplies and equipment and the cost of treating the wounded. If our estimate of outside support-our least reliable manpower estimate- should be off by as much as ? 50 percent (10,000 to 20,000 men), the effect on total costs would amount to about ? 200 million rubles over the entire six-year period. Thus, the impact of uncertainty in this catego- ry is minimal. Operations and Maintenance Expenditures for O&M for the period 1980-86 amounted to 4.6 billion rubles, or 30 percent of the estimated total. The biggest expense in this catego- ry-some 3.6 billion rubles-was the cost of main- taining ground and air forces equipment in a war environment. In addition, some 675 million rubles were spent to repair war damage to this equipment. maintenance costs went up by about 150 percent, and those of the ground forces increased by nearly 30 percent. Military and Economic Aid The value of military and economic aid deliveries from the USSR to the Democratic Republic of Afghanistan (DRA) has remained steady, averaging 400-600 million rubles per year.' The total-3.5 billion rubles in 1980-86-is not included in our 15-billion-ruble estimate of the cost of the war for the same time period because, with the exception of ammunition and some used equipment that the Sovi- ets may provide free, the Afghan Government report- edly pays for its arms imports and about one-third of its economic aid from the USSR. The DRA pays for its military and economic aid largely through the sale of its natural gas. The Soviets take about 90 percent of Afghanistan's annual production, which reduces its debt to the Soviet Union by more than $300 million a Outlays for POL during the period 1980-86 are estimated at 330 million rubles. In 1980, Soviet forces used an estimated 360,000 metric tons of POL. By 1986 use had increased to over 650,000 metric tons. About 65 percent of the total value was accounted for by air forces. Much of the increasing cost of the war was the result of the rising number of hours flown by more sophisti- cated Soviet aircraft. In 1980 a MIG-21 averaged less than 100 hours of flying time per year at a cost of 4,600 rubles per hour. Nearly 60 percent of this cost was for the one-half metric ton of ordnance it carried and expended during each sortie. Most of the remain- der was the cost of maintenance. POL accounted for slightly more than 3 percent of the cost of an hour's flying. By 1985 the MIG-21 had been replaced by the SU-17 and SU-25, which were flying three to four times as often at an hourly cost averaging nearly 15,000 rubles. Larger payloads and higher mainte- nance costs per aircraft contributed to these increas- ing outlays. During the seven-year period, air forces year. Arms transfers from the USSR to Afghanistan place that country behind only Vietnam and Cuba in terms of value received by Marxist Third World states since the start of the Afghan war. Most arms deliveries consisted of.ammunition, spare parts, and some re- placement equipment. Replacement equipment is dif- ficult to track, but that provided to the Afghans, while sufficient to maintain Kabul's forces at their current size, is less sophisticated than that provided to most other arms clients in the Third World or used by the Soviets themselves in Afghanistan. Moreover, there are indications the Soviets are unwilling to replace all Afghan equipment that has been lost, stolen, or destroyed. In some cases, armored personnel carriers have been replaced by less expensive trucks, probably because of the Afghan army's relatively poor record of caring for its equipment. ' Unlike estimates for the cost of Soviet involvement in Afghani- stan, which are in constant prices, ruble estimates for military and 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret work on road and rail transport facilities. Since the war, the USSR has largely replaced West- ern lenders and donors in providing economic support to the DRA. Deliveries from the USSR since 1979 are estimated at approximately 1.5 billion rubles. They included basic commodities such as wheat, sugar, oil products, consumer goods, and industrial raw materi- als under a grant aid program. Much of the economic development that is being paid for by the DRA was designed to support Soviet military logistic require- ments. To this extent, the Soviets are transferring part of the burden of the war to the DRA. This activity includes such projects as the new bridge over the Amu Darya, two oil-product pipelines, expansion at Kabul airport, the construction of seven new airfields, and the DRA. Thus far, the war in Afghanistan has been relatively inexpensive for the Soviets for the following reasons: ? Less than 3 percent of the USSR's armed forces is engaged full-time in the conduct of the war. ? Activity levels of a guerrilla war are generally much lower than those of a conventional theater conflict. Small-scale combat operations are the norm; large- scale offensives are the exception. ? Supply lines are relatively short, often shorter than some entirely within the Soviet Union. ? Older, less expensive equipment was used, at least in the early years. ? Military aid to Afghanistan is largely paid for by At the present level of effort, Afghan-related costs represent only 2 to 2.5 percent of total Soviet defense spending. Costs have risen at a rate of 12 percent a year, but there are signs they will grow more slowly or level off in the future. Over the past several months, Moscow has been showing some indications of at- tempting to lower its military profile in order to facilitate a political settlement. Gorbachev on 28 July, for example, announced a decision to withdraw six regiments from Afghanistan, which could have amounted to 7,000 to 8,000 troops. In fact, the net number of troops withdrawn was fewer than 2,000-a reduction that will have little or no effect on Soviet capabilities and will reduce costs associated with the war in Afghanistan by only 50 million rubles per year. Although the withdrawal was a sham, we think Moscow will not want to change its posture of main- taining that the forces on hand can control the insurgency. We do expect to see continued growth in the costs of air operations for at least another year: ? Increased Soviet use of airstrikes-as well as artil- lery support-is one of several ways of helping the Afghan army to get on its feet and of cutting back on direct operations by Soviet ground troops. ? Airfields in Afghanistan are being upgraded and improved. these improve- ments are probably intended to support more air- craft, expand logistic capabilities, and improve security. ? The number of Soviet helicopters in Afghanistan is increasing, and more helicopters are being used in support of Soviet special forces. This indicates at least a continuation and probably an expansion of the Soviets' successful policy of seeking out and sometimes ambushing resistance groups. At the same time, the insurgents are continuing to improve marginally their capabilities for downing Soviet and Afghan aircraft. We expect the Soviets to continue to limit the re- sources they are committing to ground operations as they pursue political and military strategies for disen- gaging their forces that include turning more of the burden of such operations over to the Afghan army. Over the last year the Soviet leadership has indicated more clearly than in the past that it is frustrated with the slow progress of the war and would like to be able to withdraw its troops. At the February 1986 party congress, General Secretary Gorbachev referred to the Afghanistan war as a "bleeding wound," the starkest description yet from a Soviet leader. Moscow 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret has mounted a steady propaganda campaign to con- vince both global opinion and its own population that it is sincerely seeking a political solution to the war. None of the changes in the Soviet military effort over the past year, however, appear to stem from a need to win the war quickly, or from a willingness to accept significantly higher costs, even temporarily, in the hope of a quick solution. On the political front, the Soviets have been unwilling to make even minor concessions that would affect their continuing mili- tary effort-witness the sham "withdrawal" in the fall. In short, the Soviets do not appear ready to abandon their fundamental goal of establishing in Kabul a pro- Communist regime that is stable and can rule the country without a large Soviet presence. The slow but steady rise in the economic cost of the war reflects Moscow's continued determination to do what is necessary to deal with the better armed resistance, while resisting the temptation to try to win the war quickly. Recent changes in strategy, especially the increase in air operations, have raised costs somewhat more rapidly than in the past, but the leadership apparently believes that such costs thus far have been relatively low and have not been a substantial drain on the Soviet economy. If the Soviets eventually decide to withdraw, we believe that decision would be based on political and military considerations rather than on economic factors. Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret Appendix A Table A-I USSR: The Ruble Cost of Involvement in Afghanistan, 1980-86 a 1980 1981 1982 1983 1984 1985 1986 Total Cost Total Incre- mental Cost b 198 226 290 358 439 470 450 2,430 59 68 84 98 122 132 115 678 678 16 18 20 19 25 29 15 142 Outside support 37 45 54 62 71 71 75 414 0 a Because of rounding, components may not add to totals shown. b Incremental costs are defined as those that are unique to a wartime situation. Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret Table A-2 USSR: The Dollar Cost of Involvement in Afghanistan, 1980-86 a Maintenance 995 1,036 1,039 1,102 1,164 1,332 1,400 8,068 Ground 917 944 949 999 1,027 1,192 1,190 7,219 Air 78 91 90 103 137 140 210 849 Organizational equipment 384 411 512 512 534 556 565 3,473 Ground 347 370 470 470 490 508 525 3,180 Air 37 40 42 42 45 47 40 294 Outside support 355 444 532 621 710 710 745 4,117 a Because of rounding, components may not add to totals shown. Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Iq Next 1 Page(s) In Document Denied Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0 Secret Secret Declassified in Part - Sanitized Copy Approved for Release 2012/05/24: CIA-RDP08S01350R000300950001-0