Although Russia's military budget is 15 times smaller than that of the United States, Russia's military equipment still gains regular worldwide attention. It reserves the spot as the second biggest arms dealer on the world market with export revenues of around 15 billion USD annually. This is money very much welcomed and used for re-equipping Russia's own forces with new weapons. CGTN's Aljosa Milenkovic is in Moscow, where he checked out one of the most modern sniper rifles of the Russian military.

Under the watchful eye of an experienced instructor, we were allowed to test fire the T-5000, at a closed shooting range.

The state-of-the-art sniper rifle is used by the FSO – Russia's secret service agency in charge of protecting President Vladimir Putin.

It is produced by Orsis – a small weapons producer located on the outskirts of Moscow.

ALJOSA MILENKOVIC MOSCOW "This company's products are anything but the picture image of how everybody usually imagines Russian weapons - sturdy, rugged, bulky. Orsis is the face of Russia's new weapons and also a great example of the direction in which the Russian military is heading."

140 Orsis workers are producing arguably one of the best sniper rifles in the world.

And although weapons assembly is done by the hands of experienced craftsman, Orsis is implementing some of the latest production technologies.

And the results are widely acclaimed.

ALEKSANDAR FEDOTOV, GENERAL DIRECTOR ORSIS "On the basis of T-5000 sniper rifles with calibers of 7.62-by-51 and 8.6-by-69, we developed rifles that have been adopted by the armed forces of the Russian Federation and are now being delivered to them. They like our rifles, as can be seen by the increase in orders of our products."

A 700-billion-USD rearmament program running till 2020 has produced a new stealth fighter jet, the world's most modern tank Armata, drone aircraft and ground combat vehicles.

But still, despite all that progress in weapons systems development, delivery to units of the Russian Army is not going as planned.

Out of an expected 2,300 of the latest Armata tanks to be delivered by the year 2020, only 100 have been put into service.

A similar situation is with the Su-57 stealth fighter jet and the AK-12, a new assault rifle.

VIKTOR LITOVKIN MILITARY ANALYST "We are adopting new technologies, new combat tactics using that new equipment. But it doesn't mean we need to forget the (earlier) T-72 BM3 or modernized tank T-80. We are not throwing those away in order to use only the Armata tank. Why should we do that? That's insane. It is very expensive too. Russia can't afford those expenditures. We don't want to compete with the United States military budget."

Analysts say the Russian military budget and army rearmament is not just a matter of spending.

It's helping to upgrade the industry to a higher technological level. It gives permanent jobs to many high-skilled workers and experts, significantly increases the country's GDP and also leads to new businesses.

And Orsis is one example of that.

Aljosa Milenkovic, CGTN, Moscow.