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PDF International Aerospace Technology Guide, 2017
International Aerospace Technology Guide 10(17) November, 2017
Rosoboronexport: 17 years of success

Rosoboronexport: 17 years of success

One of the major operators in the world market for arms and military equipment

On November 4, JSC Rosoboronexport (part of the Rostec State Corporation) celebrated its 17th anniversary. The company was set up by the Russian Presidents Decree in 2000 as Russia's state intermediary for importing and exporting a full range of military and dual-use products, technologies and services. Rosoboronexport is a 100% state-owned company. In 2007, the management of its stocks was transferred to the Rostec State Corporation.

Over 17 years, Rosoboronexport has become one of the leaders in arms supplies, having sold products worth a total of over $140 billion. We show good results in foreign trade, and the country's leadership doesn't leave this success unnoticed. For their great contribution in developing military-technical cooperation with foreign countries, 34 Rosoboronexport employees were awarded by Russian President Vladimir Putin, said the CEO of Roctes, Sergey Chemezov.

In 2017, Rosoboronexport did a lot to expand export geography of Russian armament and military equipment, as well as to increase the range of Russian military and dual-use products, supplied to foreign customers. Rosoboronexport is actively cooperating with more than 50 countries worldwide; and their number will further increase by the end of 2017, despite unscrupulous actions of some countries, competing with Russia in the global arms market.

Rosoboronexport's order portfolio currently amounts to about $45 billion, which proves high competitive edge of Russian defense products on the global level. A considerable share of the portfolio are contracts to purchase Russian high-tech systems, primarily aircraft and air defense systems. In addition, Rosoboronexport is discovering new market segments, developing exports of civilian and sporting weapons and making turnkey national security systems that use cutting-edge information security solutions. For hundreds of Russian companies Rosoboronexport became a guide to international success, an indispensable assistant, and sort of a one-stop service, which has powerful governmental support, respect from foreign partners, expertise accumulated over tens of years, and latest marketing technologies, said the CEO of Rosoboronexport Alexander Mikheev.

Rosoboronexport the sole Russian state intermediary agency, which is responsible for import/export of the full range of defense and dual-use end products, technologies and services. Only Rosoboronexport has the right to supply the world market with a full range of arms and military equipment manufactured by Russias defense industrial complex and approved to be exported. Rosoboronexport accounts for more than 85% of Russia's arms exports. Rosoboronexport is among the major operators in the world market for arms and military equipment.

The official status of the exclusive state intermediary agency gives Rosoboronexport unique opportunities to expand long-term mutually beneficial cooperation with foreign partners, provide guaranteed state support of all export-import operations, and strengthen Russias leadership in the world arms market.

The main result of biography of Rosoboronexport, despite the difficult economic conditions and fierce, often unfair, competition in the global arms market, that company have managed not only to carry its sales, but also significantly enlarge its footprint in the traditional and new arms markets. Through integrated marketing strategies, company have ensured that order book today exceeds US$ 46 billion.

The special exporter makes painstaking efforts on a daily basis to increase Russian arms exports resulting in more than a thousand contract documents signed with foreign customers every year. Over the period of its operation in the international market, Rosoboronexport has delivered hundreds of thousands of units of military equipment and weapons worth more than US$ 120 billion to 115 countries.

Rosoboronexport pays great attention to both major billion dollar contracts and small deals. The company seeks to operate flexibly and efficiently by using modern and advanced marketing and customer settlement methods. The special exporter cooperates with more than 700 Russian defense-industrial enterprises and organizations, which enables it to offer partner countries the comprehensive and cost-effective solutions for strengthening their defense capability and national security.

By concluding export contracts, Rosoboronexport supports the Russian defense industry, which is especially important under difficult conditions in the global market. High-tech products are in increased demand in the world arms market today and thus the company is interested in developing smart manufacturing in Russia.

In addition, Rosoboronexport is actively involved in a number of charitable and sponsorship projects. The company provides assistance to military hospitals, military historical museums, and children's educational institutions. Rosoboronexport supports major sporting events and various sports federations, acts as sponsor and partner of the largest industrial exhibitions and cultural events held in Russia and abroad.

Rosoboronexport pursues a marketing strategy targeted to expand the geography, range and volume of export deliveries. A number of special programs and projects for exporting products to specific countries have been developed based on a comprehensive analysis of the arms markets and foreign partners needs. Rosoboronexport seeks to operate flexibly and efficiently in the market, using modern and advanced marketing and customers' settlement methods.

Foreign customers are offered package solutions for national systems intended to defend land, air and seaside borders, which feature the optimal trade-off between cost and performance. These solutions may include both the supply of military products and services and organization of licensed production in customer countries, the setting-up of joint ventures to manufacture and maintain equipment, as well as joint R&D efforts. Rosoboronexport widely uses the optimal offset programs. With regard to foreign customers interests and the opportunities of the Russian defense industrial complex to increase its exports, Rosoboronexport pays much attention both to major billion-dollar contracts and small deals worth the hundreds of thousands to several millions of dollars.
The first Soviet state intermediary agency for military-technical cooperation with foreign countries was created on 8th May 1953 after the USSR Council of Ministers had decided on forming the General Engineering Department within the then Ministry of Domestic and Foreign Trade. Other special foreign trade bodies were created later on to provide for further expansion of military-technical cooperation activities. In the late 1990s there were two federal state unitary enterprises in Russia acting as state arms exporters Rosvoorouzhenie State Corporation and Promexport.

In November 2000 the two enterprises were merged into a single one Rosoboronexport Federal State Unitary Enterprise, the sole state intermediary for export/import of defence products, by the Presidential Decree No. 1834 dated 4th November 2000 aimed at restructuring the system of military and technical cooperation of the Russian Federation with foreign states, and improving its performance. Since September the 1st, 2014 Rosoboronexport has been operating as a joint stock company.

Core areas of activities of Rosoboronexport
  • Export / import of all types of conventional weapons, military and dual-use equipment and services.
  • Organization of licensed production of armaments and military equipment abroad, joint R&D efforts with foreign partners.
  • Maintenance and repair of earlier supplied weaponry and military equipment.
  • Modernization of Russian-made weapons and military equipment.
  • Training foreign specialists in Russia and customer countries in the operation and maintenance of supplied military equipment.
  • Technical assistance in the construction of military infrastructure facilities: defense plants, airfields, depots, ranges, training centers.

At the International military-technical forum Army-2017 Rosoboronexport will present their exposition in the framework of the demonstration center of the Rostec Corporation in the joint exhibition of the Corporation. Rosoboronexport's stand will be 222 sq. m, and will use the modern multimedia tools (a table with the effect of levitation, video wall, touch panels, etc.), where will be presented for a wide range offered for export military products from Russia. There is the latest exhibition technology, also with holographic multimedia catalogs and many other innovations.

Rosoboronexport pursues a marketing strategy targeted to expand the geography, range and volume of export deliveries. A number of special programs and projects for exporting products to specific countries have been developed based on a comprehensive analysis of the arms markets and foreign partners needs. Rosoboronexport seeks to operate flexibly and efficiently in the market, using modern and advanced marketing and customers' settlement methods.

Only Rosoboronexport has the right to supply the world market with a full range of arms and military equipment manufactured by Russias defense industrial complex and approved to be exported. Rosoboronexport accounts for more than 85% of Russia's arms exports. Rosoboronexport is among the major operators in the world market for arms and military equipment.

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