Russia’s Defence Export: Russia’s apex weapons trade body, the state owned Rosoboronexport, has sold weapons worth over $180 billion in the last two decades after it was created in the year 2000 by the Russian President Vladimir Putin through a Presidential decree.
Before 2000, deliveries of Russian arms exports were handled by two major entities – Rosvooruzhenie and Promexport – in addition to a large number of arms manufacturers.
In order to reform and consolidate the country’s all defence related trade under one umbrella entity, President Putin created Rosoboronexport.
Rosoboronexport was set up as the basis of effective vertical executive power in the field of military-technical cooperation. The company received the right to export the entire range of military products, said the company which is a part of state owned Rostec Corporation.
“Rosoboronexport has become a leader in the international arms market over the past two decades and achieved strong results in promoting products manufactured by domestic enterprises, including those affiliated to Rostec, said Sergey Chemezov, CEO of Rostec and Chairman of the Board of Directors of Rosoboronexport.
Sergey Chemzov said the company’s key financial indicators – the order book and the value of deliveries – have increased five-fold since 2000.
Russia sells weapons to 122 countries
Sergey Chemezov said Rosoboronexport has signed more than 26,000 contracts with partners over the years and delivered over US$180 billion worth of products to 122 countries around the world.
“A high level of competence, attention to trends and customer needs, demonstrated over the years, clearly suggest that the company has good prospects for expanding its footprint and deepening cooperation with partners,” he added.
The company said Russia has consistently ranked second among the world’s top arms exporters and foreign customers have been supplied with products for all services of the armed forces in the last two decades.
Fighter jets dominate the Russian defence export
According to information shared by Alexander Mikheev, Director General of Rosoboronexport, fighter jets and weapon platforms for air forces account for the biggest chunk of Russian defence exports.
“Our foreign partners have received products worth over $85 billion for their Air Force. Exports of equipment for Air Defense and Ground Forces exceeded $30 billion for each of these services of the armed forces and $28 billion for the Navy,” said Alexander Mikheev, who is also Deputy Chairman of the Russian Engineering Union.
A key challenge facing Rosoboronexport is to bring the latest high-tech weapons and military equipment to the global arms market.
Rosoboroexport to launch 50 new weapon systems
The company said it would launch about 50 new modern weapons and pieces of military equipment on the global arms market in the next five to seven years.
Russian defence giant said its potential ‘bestsellers’ include products developed and manufactured by Rostec subsidiaries: Armata-based armored vehicles assembled at UralVagonZavod (UVZ), Su-57E fifth-generation fighter jet from the United Aircraft Corporation (UAC), Ka-52K ship-based helicopter, and the upgraded Mi-28NE from Russian Helicopters.
“Among the products of other companies, the Antey-4000 air defense missile system from the Almaz-Antey Air and Space Corporation cannot be ignored,” said the nodal defence trade body of Russia.
In addition to the export of final products for the armed forces, Rosoboronexport is also offering construction of infrastructure facilities, provision of space services, and training of foreign specialists in the operation of Russian products.
Foreign customers appreciate Rosoboronexport competencies and the opportunity to cooperate with Russia’s defense industry through the company as a unique one-stop shop offering a full package of services for the export of high-tech military and civilian products and technology transfer, said the company.
The company said it pays special attention to industrial partnership projects with foreign customers.
It said it has a large portfolio of fulfilled projects for licensed production and joint ventures in India, Jordan, Malaysia, Vietnam and several other countries.
“Today the world’s economies require localization and are interested in technology transfer and job creation. Therefore, Southeast Asian and North African countries, India, and China have already established their own industrial platforms. Rosoboronexport is ready to work on them and, together with industry and Rostec State Corporation, promote Russian high-tech solutions, develop new products jointly with partners,” said Alexander Mikheev.
Rosoboronexport said promotion of dual-use and civilian products to foreign markets has become a new and promising area of its activities.
The company, which has extensive experience in integrated supplies of utility, fire and other specialized equipment, is also supplying specialised weapons for non-military use.
The company also delivers non-military and service weapons and is active in the markets of high-tech security equipment, medical equipment, hospitals, and special equipment for public and private structures.
“The President has challenged the defense industry to diversify into manufacturing of competitive civilian products. In order to promote them to the world market, Rosoboronexport has set up a special business unit that will deal only with non-military products and assist companies that have no experience in independent foreign trade activities,” said Alexander Mikheev.
Mikheev said the company was implementing a new vision in partnership with enterprises both inside and outside the Russian defense-industrial complex.
“Here we see our responsibility to develop the economy of Russian regions and industry in general,” he added.