Tesla is working on new battery cell designs, and a way to make their own cells, with R&D teams in a lab near its car plant in Fremont, California.Technologyread more
The Federal Reserve and the market are miles apart on interest rate expectations, and the disparity could cost the stock market a 7%-10% drop, economists say.Economyread more
President Trump lambastes Twitter, Google and other technology giants for what he claims as their efforts to stifle him.US Economyread more
Underneath the impressive market rally is a trend that doesn't seem quite right, according to J.P. Morgan.Marketsread more
Mnuchin tells CNBC he's confident President Trump and China's Xi Jinping can make progress in stalled trade talks.World Economyread more
JP Morgan's Jamie Dimon says student lending "is a disgrace and it's hurting America."Economyread more
The Supreme Court refused to overturn a precedent that strengthened the power of government regulators in a closely watched case that could have had broad ramifications for...Politicsread more
Shares of Paychex dropped on Tuesday after Bank of America downgraded the stock due to its "excessive valuation" and "underwhelming fundamentals."Marketsread more
A full-time worker earning the federal minimum wage of $7.25 per hour cannot rent an affordable two-bedroom apartment anywhere in the country, where affordable is defined as...Spendread more
The president raised $6 million alone at a fundraiser he attended at the Trump International Hotel on Tuesday in Washington.Politicsread more
The first debates will give most of the contenders their biggest platform yet to present themselves to the American people.Politicsread more
WASHINGTON — The Russian S-400 missile system costs a fraction of rival platforms made by U.S. companies, one of the major reasons several countries are interested in dealing with the Kremlin despite the potential for blowback.
Russia's S-400, a mobile long-range surface-to-air missile system, costs approximately $500 million, whereas a Patriot Pac-2 battery costs $1 billion and a THAAD battery rings in at about $3 billion, according to people with first-hand knowledge of a U.S. intelligence assessment.
Nearly 13 countries have expressed interest in buying Russia's S-400, a move that could trigger potential U.S. sanctions under the Countering America's Adversaries Through Sanctions Act, which President Donald Trump signed in August 2017. In September, the U.S. slapped sanctions on China for buying fighter jets and missiles from Russia. However, the U.S. could grant sanction waivers.
Russian arms are generally considered less expensive than American weapons, in large part because they come without extensive maintenance support.
"When foreign militaries buy American, above and beyond the purchase, they are buying a partnership with the U.S. military," Andrew Hunter, director of the Defense-Industrial Initiatives Group at the Center for Strategic and International Studies, told CNBC. "And that plus the maintenance and technical assistance is a big part of the cost difference."
The Pentagon did not immediately respond to a request for comment for this article.
The S-400 system, the successor to the S-200 and S-300 missile systems, made its debut on the world stage in 2007. Compared with U.S. systems, the Russian-made S-400 is capable of engaging a wider array of targets, at longer ranges and against multiple threats simultaneously.
In terms of capability, one source noted that while there is no perfect weapon, the S-400 eclipses even THAAD, America's missile defense crown jewel.
When asked why nations seek to buy the S-400 instead of America's Patriot or THAAD systems, one of the people with knowledge of the intelligence report explained that foreign militaries aren't willing to stick with the cumbersome process of buying weapons from the U.S. government.
"Many of these countries do not want to wait for U.S. regulatory hurdles," said a source with first-hand knowledge of the assessment. "The S-400 has less export restrictions and the Kremlin is willing to expedite sales by skipping over any regulatory hurdles."
China, India and Turkey have already signed purchase agreements with the Kremlin.
China, which is embroiled in a trade battle with the U.S., is in the middle of receiving its final shipment of the S-400 system. India, the top buyer of Russian arms, signed a deal with Moscow for the S-400 last month. Turkey, a NATO ally, is slated to receive its S-400 next year and is expected to have the system ready for use by 2020.