The order book for Russian arms exports exceed $ 40 billion

 

The order book without Russia ‘frozen’ obligations to Libya and Iran due to the sanctions the UN Security Council, more than 40 billion dollars. In an interview to "Interfax" said First Deputy Director FSMTC Alexander Fomin.

According to him, "today prevails in the portfolio, as before, aviation technology, including aircraft grade" Su ", helicopters marks" Mi "and" Ka "(over 40%). Great demand by foreign customers of air defense equipment, including the S-300 air defense missile systems "Buk" ZRPK "Armour-C1." Its volume is the fifth part of the existing commitments. Approximately at the same level is the volume of orders in the interest of the Navy and the Army. "

Answering the question of "Interfax" on exports of defense products MTC entitled to conduct independent foreign economic activities in terms of the supply of spare parts, service and repair, A.Fomin replied that "the volume of exports of MTC" small "law, which is now 21 per year increases. In 2011, it reached $ 2.5 billion. Among the best possible note of "PCU", JSC "RAC" MiG ", OJSC" Company "Sukhoi" JSC "MIC" NPO Machine Building ", FSUE" MSC ", FSUE" SPC Gas Turbine "Salute" and others. "

Full text of the interview below. 

 

Interview of the First Deputy Director of the Russian FSMTC AV Fomin agency "Interfax"

 1. What are the preliminary results of the military-technical cooperation between Russia and foreign countries in 2011? What is the total volume of Russian arms and military equipment abroad? How did the geography of supplies? Who are the most rapidly developing relationship? What is the structure of the arms deliveries?

The past year marked the MTC-fulfillment of planned targets. The volume of exports of defense products to foreign customers exceeded 13 billion dollars.

Our main partner in military-technical sphere is India in this country put a quarter of all the exported products. Among the major countries importing Russian arms also includes China, Venezuela, and Vietnam.

Traditionally, the share of aircraft accounted for more than half of all deliveries. A quarter of the exports amounted equipment of the Army. Deliveries in the interest of the naval forces and air defense forces of foreign customers accounted for approximately 10 percent.

2. What is the outlook for 2012? Will it be possible to provide record levels again? In what amount assessed "portfolio" of orders? What is included in this "portfolio"?
Export forecast for 2012 we estimate will exceed that of 2011, and will reach more than $ 13.5 billion.

The order book, excluding the "frozen" due to UN sanctions obligations to Libya and Iran, more than 40 billion dollars, over the next several years will provide stable operation of military-technical cooperation.

To date, the portfolio structure prevails, as before, aviation technology, including aircraft grade "Su", helicopters marks "Mi" and "Ka" (over 40%). Great demand by foreign customers of air defense equipment, including the S-300 air defense missile systems "Buk" ZRPK "Armour-1C." Its volume is the fifth part of the existing commitments. Approximately at the same level is the volume of orders in the interest of the Navy and the Army.

3. How justified it was decided to provide a number of defense enterprises franchisees to market services previously supplied weapons? How many businesses have such a right, what volume of foreign exchange earnings, they have provided in the past year? Who can be mentioned with the best hand?

Providing individual enterprises of the defense-industrial complex, as a rule, is the lead developer and manufacturer of arms and military equipment, the right of foreign trade activities in the supply of spare parts, repair and maintenance of previously delivered abroad technique has paid off.

With the ability to "parent" organizations, which hold the technical documentation, provide the most complete and quality after-sales service, as well as a more flexible pricing policy in the sale of spare parts and more quickly resolve questions of their supplies, exports of subjects "small" law, which is now 21 increase each year. In 2011, it reached $ 2.5 billion. Among the best it can be noted: SUE "CBI", JSC "RAC" MiG ", OJSC" Company "Sukhoi" JSC "MIC" NPO Machine Building ", FSUE" MSC ", FSUE" SPC Gas Turbine "Salute" and others.

4. Many skeptics predicted that because of events in the Middle East and North Africa, Russia’s arms exports is seriously hurt. How much money has missed Russia’s arms exports from the fact that we actually turned MTC with Libya? Is there a chance to return to this market?

It should be noted that the suspending Libya’s military-technical cooperation with the Russian Federation to fulfill a resolution to the UN Security Council. It was not our decision, but a necessary measure. As a result, Russia’s arms exports has missed about 2 billion U.S. dollars. Chance of returning to the market remain. One of the objective reasons for this is the large number of surviving in Libya since the Soviet era military equipment requiring maintenance, repair and modernization.

5. In recent years, Russian exporters have seriously stepped up its work in Latin America. How are the major arms contracts with Venezuela, in particular, the construction of two plants to produce Kalashnikov rifles and ammunition, as well as the supply of air defense systems and armored vehicles?

Cooperation in the military-technical sphere with Central and Latin America, in particular, with Venezuela is developing dynamically. Inmates with the country contracts are implemented on a scheduled basis. Leaders of Venezuela expresses its satisfaction with the delivery of Russian art.

6. Are there any talks on the delivery to Brazil an additional batch of Mi-35 helicopters or other? How many of the 12 Mi-35 have already been delivered to the customer?

Currently, the Federative Republic of Brazil delivered 6 units of Mi-35M. We would like to hope for continued cooperation in this area.

7. When a contract can be signed for the supply of Russian armored vehicles to Brazil "Tiger"? Completed to test this car in Brazil?

The car was delivered in the city of Rio de Janeiro for the demonstration test. Upon request, additional equipment was installed and upgraded. Currently testing the upgraded machines completed, and representatives of foreign customers analyze the results. Negotiations on this subject, I hope, will continue.

8. Do we have the arms contracts with Chile, Argentina, Mexico? What is the Russian technique, these countries are interested in?

In Chile we have, unfortunately, there is no contract.

In August 2010, signed a contract for the supply of 2-Mi-171E in Argentina and at the end of 2011 they were delivered.

Military-technical cooperation with Mexico can not be considered widespread, but there are positive trends in its development. In particular, Russian and Mexican sides have decided to return to the dialogue on the conclusion of an intergovernmental agreement on military-technical cooperation, in December 2011 signed a contract for the supply of 3 units of the Mi-17-B5.

9. At what stage is the execution of a
contract for the delivery of 21 Russian helicopter Afghanistan? How many cars have been delivered?

The Russian side continues to successfully fulfill its obligations under the contract between JSC "Rosoboronexport" and the Ministry of Defense of the United States of America for the supply of 21 military-transport helicopter Mi-17-V5 in the interests of the Afghan National Army.

As of December 29, 2011 in Afghanistan delivered 9 Mi-17-V5. During the first half of 2012, is scheduled to perform the delivery of the remaining 12 Mi-17-B5 and property to them.

10. Are there any talks on the purchase of an additional party in Israel unmanned aerial vehicles? (Reported to be preparing a contract for $ 100 million). How much has already been purchased drones?

In 2010, he successfully completed the purchase of the Israeli side several reconnaissance complexes with unmanned aerial vehicles. Continued cooperation on UAVs possible.

11. Does any Russian military-technical cooperation with North Korea, at least in terms of the supply of spare parts?

Currently, the military-technical cooperation with North Korea almost done with the constraints imposed by the Decree of the President of the Russian Federation dated May 27, 2007 № 665 "On measures to implement UN Security Council Resolution 1718 of 14 October 2006" and on March 27 2010 № 381 "On measures to implement UN Security Council Resolution 1874 of 12 June 2009."

12. How successfully implemented an intergovernmental agreement on Russian-Indian fifth-generation fighter and medium transport aircraft, known as the MTA project?

Agreement between the Government of the Russian Federation and the Government of the Republic of India on cooperation in the development and production of perspective multi-purpose fighter, as well as cooperation in the development and production of multi-role transport aircraft in general are implemented successfully.

13. What are our chances of winning the Indian tender for the purchase of 197 light helicopters? When it can be declared the winner of the tender?

The Government of the Republic of India in December 2008 announced an international tender for 197 light helicopters.

Continue to participate in the tender of "Rosoboronexport" and JSC "Helicopters of Russia" with the helicopter Ka-226T and the European company "Eurocopter".

Russian helicopter has passed all the stages of benchmarking, which is signed by the relevant regulations. At present, the Ministry of Defence of India completes technical evaluation test, after which a decision on the opening of commercial bids. According to available information, the Russian helicopter has a good chance of winning. We believe that the winner of the tender will be announced in the spring of this year.

14. When it can be contracted to supply to India, an additional batch of 42 Su-30MKI?

In December 2011 signed a protocol to the intergovernmental agreement to increase the licensed production of aircraft for 42 units. At present JSC "Rosoboronexport" is in talks to agree to a draft of the contract, the signing of which is expected in the second half of 2012.

15. How do you assess the prospects of China’s purchase of Russian air defense systems (S-300PMU-2 "Favorit" S-400 "Triumph", etc.), as well as Russia’s new multi-purpose fighter Su-35? According to unofficial data, a package of proposals of the Russian side includes, among other things, proposals for licensed production of the Su-35 in China.

In the period from 1993 to 2010 within the framework of military-technical cooperation in the People’s Republic of China was delivered a significant number of anti-aircraft missile systems produced in Russia, including the S-300PMU2 "Favorite". With regard to further cooperation with China in the field of defense, it is now our Chinese partners have expressed interest in acquiring anti-aircraft missile systems, the new generation S-400 "Triumph", the first batch of which they wish to receive in 2015. Prospects for exports to China of systems S-400 "Triumph", including the possible dates of these supplies can be defined as the solution of the above systems to equip the Armed Forces of the Russian Federation. Is currently under construction of additional facilities for the production of S-400 "Triumph". By purchasing Russian air defense systems of other Chinese Party has not yet shown interest.

Regarding prospects for exports to China Su-35 can say the following. In 2011, the Chinese side expressed its readiness to purchase a certain number of these aircraft, and turned to us with a proposal. At present, the issue being worked through authorized organizations of the Russian Party.

16. Are there any talks on delivery of a new batch of Vietnam Russian S-300PMU1 and Su-30MK2?

The official request from Vietnam for the supply of a new party Russian anti-aircraft missile systems S-300PMU1 and Su-30MK2 fighters have been received.

17. Malaysia announced its intention to buy another squadron of Su-30MKM. Are there any talks on this subject?

First of all I would like to emphasize that the Malaysian side has not announced its intention to purchase an additional batch of Su-30MKM. This kind of reports appeared in the media after the visit of Russian Defense Minister of Malaysia, and his visit to the Irkutsk aviation plant. These publications are not true.

As you know, Malaysia is planning to purchase a squadron of multi-role fighters. The decision about the type of aircraft to be taken on an international tender, the opening of which is expected in the current year and in which Russia plans to attend, along with American and European manufacturers. Depending on the availability of the Royal Malaysian Air Force aircraft operating experience of the Russian believe that we have a good chance to win this tender.

18. Russia, as you know, has bought from France, two helicopter carriers "Mistral". When will the construction of these ships? At what stage are the negotiations on the purchase, but rather build on the Russian shipyards have two helicopter?

Countdown construction contract period 2 helicopter landing ships, docks began November 1, 2011 in the city of Saint-Nazaire February 1, 2012 at the shipyard of the French company «STX» ceremony called "cutting the first steel" for the body of the 1st helicopter landing ship dock. Negotiations on the construction at Russian shipyards 3 and 4 of the helicopter landing ship dock of the "Mistral" will go into action after a decision of the Ministry of Defense of the Russian Federation.

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