Military and technical cooperation

Russia remains one of the world’s top defense products suppliers

Since 2000, the Russian Federation has established a sufficiently effective system to manage military-technical cooperation between the Russian Federation and foreign states, incorporating the Federal Service for Military-Technical Cooperation (“FSMTC of Russia”) as its critical enabler. The Federal Service for Military-Technical Cooperation is empowered with control and supervision functions in the MTC area. FSMTC of Russia shall be a decision making authority on import to and export from the Russian Federation of military purpose products as decreed by the President of the Russian Federation, also in the established manner and as authorized by the Russian Federation President, issue of licenses to military-technical cooperation-affiliated entities for import to and export from the Russian Federation of military purpose products.

“FSMTC of Russia” granting in the established manner foreign trade licenses to (from) corporate developers and manufacturers of military-purpose products and arranging exhibitions and shows of specimens of military purpose products in the Russian Federation and foreign states as required by the Government of the Russian Federation; and in the established manner and as required by competent authorities of foreign states, issue of end user’s certificates for import military purpose products to corporate developers and manufactures of military purpose products.

For example, on the conference on summarizing of the results of advertising and exhibition activity in the area of military-technical cooperation of the Russian Federation with foreign countries in 2015 and activity planning for 2016 with participation of representatives of the interested federal executive authorities, military-technical cooperation affiliated entities and other Russian organizations was held on December FSMTC of Russia presented the departmental awards to the most active participants of the advertising and exhibition activity in the area of military-technical cooperation. Among the award recipients were the representatives of the Ministry of Defence of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation, the Federal Service for Technical and Export Control, State Corporation «Rostec», JSC «Rosoboronexport», JSC «UAC», «Almaz-Antey» Corp., JSC «Russian Helicopters», JSC «RPC «Uralvagonzavod», JSC «SPA «Bazalt», JSC «KBP», FSUE «Gamma Scientific and Production Enterprise», JSC «Exhibition Companies Group «Bizon», company «International Congresses and Expositions».

Military and technical cooperation between Russia and pacific region states is on the rise now. Pacific region nations account for considerable part of Russian defense products delivery. This number may quite possibly rise significantly. Besides, seeing the growing interest toward aviation and air defense equipment, we hope for stepping up of cooperation in this regard. Russian planes and helicopters have proven themselves highly efficient during large-scale counter-terrorism operations worldwide. Their air superiority and anti-ground high-precision strikes capabilities are also well known to our partners in other states. Among others, in this region large export potential belongs to gunships and transport helicopters, various air defense systems, antiaircraft gun and missile system.

From recent examples of successful participation российско the equipment in the international exhibitions can remember a little. So, Russia takes part in the arms exhibition in Gulf Defence & Aerospace 2015, an international exhibition of arms and military equipment to be held from 8 to 10 December in Kuwait City (Kuwait). “Rosoboronexport seeks to intensify cooperation with the Gulf countries, which are interested in strengthening their armed forces. Russia has deservedly earned recognition as a reliable and independent partner while Russian weapons have proven their effectiveness and reliability in challenging combat and climatic conditions. The participation in the exhibition in Kuwait is another step to strengthen our position in the region,” said Rosoboronexport Deputy Director General Sergey Goreslavsky, who heads the Company’s delegation at the exhibition.

The Gulf states are showing interest in Russia’s army, air force and air defense weaponry. In addition, Rosoboronexport promotes naval equipment here such as patrol boats, frigates, and coastal missile systems. The foreign delegations are expected to pay more attention to the T-90MS MBT, TOS-1A heavy flamethrower system, Typhoon-K MRAP vehicle, Kornet-EM ATGM system, Su-35 and MiG-29M/M2 fighters, Ka-52, Mi-28NE and Mi-35M attack helicopters, Mi-17 and Mi-26T2 transport helicopters, Yak-130 combat training aircraft, Il-76MD-90A military transport aircraft, as well as air defense weapons of various classes, including the Antey-2500 and S-400 long-range air defense missile systems, Buk-M2E medium-range SAM system, Pantsir-S1 air defense missile/gun system and Igla-S MANPADS.

At Gulf Defence & Aerospace 2015, Rosoboronexport will hold talks with the representatives of the armed forces of the countries from the Middle East and other regions over the prospects for expanding military-technical cooperation.

The Russian delegation will also include JSC NPO Splav (part of JSC NPO Tehmash) and JSC High-Precision Systems (Vysokotochnye Kompleksy) represented by JSC Shipunov KBP Instrument Design Bureau, JSC Tula Arms Plant, JSC Kovrov Electromechanical Plant, JSC VNII Signal Research Institute and JSC Nudelman Precision Engineering Design Bureau (KBtochmash)

Military and technical cooperation with the region’s nations tends to increase both in terms of quality and quantity. Thus, recently FSMTC of Russia experts have participated in ‘DUBAI AIRSHOW-2015’ international airspace exhibition held on November 8-12, 2015 in Dubai (United Arab Emirates). Russia has been an exhibitor at ‘DUBAI AIRSHOW’ since 1993. The Russian display area this year has been 678 square meters. The exposition involved 23 Russian enterprises including the largest ones like ‘Rostech’ State Corporation, ‘Rosoboronexport’, ‘Almaz Antei’, Russian aircraft Corporation MiG, ‘Sukhoi’, ‘Vertoley Rossii’ (Russian Helicopters). Altogether about 200 samples of Russian advanced defense products have been shown in Dubai.

During the exhibition Russia has held negotiations with delegations of UAE, Kuwait, India, RSA, Malaysia, Bahrain, Egypt, Iraq, Indonesia, Jordan, Oman and other countries. They discussed prospects for Russian armament supply including aircraft, air weapons and air defense equipment as well as issues of creating maintenance facilities and establishing after-sale service.

Russia considers Kuwait to be among the most signficant partners as to military and technical cooperation in this region and in whole Asia. Military and technical cooperation between our two countries goes deep. It began in 1978 and advanced in a rather active manner. Thus, back then our country provided Kuwait with about 700 ‘Strela’ portable antiaircraft missile systems and twenty ‘Osa’ air defense missile systems.

Extending cooperation between Russia and Kuwait is spoken by the Memorandum of military and technical cooperation between ‘Rosoboronexport’ and Defense Ministry of Kuwait undersigned in November this year, which shows Kuwaiti military’s profound interest towards purchasing Russian military equipment. In particular, Kuwait is interested in Russian battle aircraft and air defense systems. More details of types and purchases will go public later. So far only growing interest can be observed. Besides, much attention has been paid to creation of heavy infantry fighting vehicle (IFV) based on Enigma IFV developed by UAE and Russian AU-220M weapon station equipped with 57mm gun.

In this year at the Bahrain International Airshow 2016 (January 21-23) many countries displayed an interest in buying Russian aircraft, helicopters and air weapons. The Su-35 and MiG-29M/M2 multirole fighters, Yak-130 combat trainer, Il-76MD-90A military transport, Ka-52 and Mi-28NE attack helicopters, Mi-35M transport/attack helicopter, and Mi-17 type military transport helicopters have great export potential in the region.

“Rosoboronexport’s order portfolio for aviation equipment exceeds currently $22 billion. Interest from foreign customers, including in the Middle East and North Africa, is growing. This stems from both launching new aircraft models to the international market and high operational effectiveness of modern Russian military aircraft, including its capabilities for delivering surgical strikes on ground targets. Demand is supported by an excellent cost-effectiveness ratio and Russia’s reputation as a reliable and responsible partner in military-technical cooperation,” said Sergey Kornev, Head of Air Force Equipment Export Department, who leads the Rosoboronexport’s delegation at the exhibition. At the exhibition, Rosoboronexport showed the open presentation “Russian Military Aircraft Fighting against Terrorism,” which analyzes the Russian aircraft’s capabilities for use in counter-terrorist operations.

The Bahrain International Airshow has been held since 2010. This year, along with Rosoboronexport, it was attended by Russia’s Federal Service for Military-Technical Cooperation, Russian Helicopters and United Aircraft Corporation delegations.

The special story is demanded by a subject of the Russian-Indian relations. The Russian-Indian scientific and technical conference “Effective after sale service – assurance of high operability of arms and military equipment” was held within the International Aviation and Space Salon “MAKS-2015” in Zhukovsky at the House of Scientists TSAGI under the aegis of FSMTC of Russia on August 25, 2015.

A.V.Fomin, Director of FSMTC of Russia, A.V.Potapov, Deputy Minister of Industry and Trade of the Russian Federation, representatives of JSC “Rosoboronexport” and leading military-industrial complex enterprises, whose production is in demand at Indian arms market, took part in the conference work from the Russian side.

A.K.Gupta, Secretary (Defence Production) of the Ministry of Defence of the Republic of India, S.Garg, Joint Secretary (Defence Industry Development) of the Indian Ministry of Defence, representatives of Armed Forces Headquarters (Air Force, Navy, Army), Indian enterprises concerned with operating, maintenance and repair of Russian origin military equipment.

During the Conference, its participants discussed the existing issues in area of after sale service of Russian origin military equipment in India and exchanged opinions about its effectiveness increase. It was proposed to Indian partners a comprehensive approach for maintenance of arms and military equipment during the whole life cycle from delivery to utilization. During the Conference, held in close friendly atmosphere, the representatives of Russian and Indian military-industrial complex established direct contacts and achieved a number of arrangements on improving of maintenance quality of Russian origin arms and military equipment.

In his interview for Russian Industrial Weekly newspaper Alexander Fomin, Director of FSMTC of Russia has described the extent to which the current stage of military and technical cooperation with other countries is significant. Among other things he said the following.

“Today the situation of world armament and military equipment market depends on many factors. These are ongoing global economic crisis, complex military and political situation in Middle East and North Africa, stepping up of military production competitors which include first of all the USA, Germany and France.

We should recognize stepping up of such armament exporters as China, Republic of Korea, Israel and Turkey as well as entry of new ambitious players like Japan and Republic of South Africa. It is needless to say that development of military and technical cooperation between Russia and other countries is to some extent influenced by so-called ‘anti-Russian sanctions’. Nevertheless, Russia is still one of the largest global defense suppliers and it is keeping intensive military and technical cooperation underway.

Indian Air Force and Navy are armed with many Russian (Soviet) aviation equipment such as Su-30MKI, MiG-21, MiG-23, MiG-29 ground and ship-based fighters, Il-76 transport aircraft and Il-78 tankers, naval Tu-142M and Il-38, Mi-17, Mi-26, Ka-28 and Ka-31 helicopters. The mentioned aircraft are going to be used by Air Force and Navy of India for next decades and should be constantly maintained by Russia.

Nowadays India is much interested in establishing production of Ka-226T helicopters in India. There are negotiations underway as to cooperation conditions under this project. There is a possibility of additional lots of Mi-17V-5 helicopters to be delivered and increasing the number of Su-30MKI planes being produced under license in India. All this makes us enthusiastic in Russian and Indian cooperation in terms of battle aircraft.

Main areas of cooperation with Malaysia in this regard include after-sale service of Su-30MKM aircraft. In 2012 a maintenance facility was established under the delivery contract. Besides, there are efforts to promote additional lot of Su-30MKM’s to Malaysian market. Currently Malaysia is considering proposals for upgrading MiG-29 planes delivered before.

Military and technical cooperation between Russia and China as to battle aircraft is also promising”.

Answering the question of joint defense production to be established by Russia in partner countries, Director of FSVTS emphasized as follows:
“Decisions to establish joint defense-oriented enterprises are made by the President of the Russian Federation and the Government of the Russian Federation. Our Federal Service is responsible for implementing the mentioned decisions and monitoring.

In this regard I would like to state that while the decision to establish a joint enterprise is being prepared, the issue is to be addressed comprehensively in all departments and agencies including FSMTC of Russia, Russian Defense Ministry, and Ministry of Foreign Affairs, Ministry of Industry and Trade and other agencies in order to avoid losses for the Russian Federation. Besides, all factors like political, economic, military and technological ones should be taken into account. Targeted decisions are made as to each separate joint enterprise. Joint development and production are cross-pollinating and allow consolidating and developing technological potential of Russia as well as facilitate future innovation-driven growth”.

Nowadays, promotional and exhibition activity is becoming one of the most important mechanisms of strengthening political and economic positions of states-exporters of arms to different regions of the world and also a set of actions efficiently assisting in innovative development of economy, primarily, of all the military-industrial complex, manufacturing of competitive goods through attracting investments and new technologies.

From 2000 till 2010 FSMTC of Russia in association with the concerned federal bodies of the executive branch created a harmonic and effective system of exhibitions regarding military purpose products (further – MPP) in the Russian Federation. This system is based on 3 nationwide exhibitions, held in the Central Region of Russia and covering principal areas in the field of production of arms and military equipment:

The International Aviation and Space Salon MAKS held starting from 1992 in odd-numbered years at the grounds of FSUE Flight Research Institute named after M.M.Gromov in Zhukovsky, Moscow Oblast;
The International Maritime Defense Show IMDS held starting from 2003 at Lenexpo Exhibition Complex in St.-Petersburg;
The International Show of Weapons and Military Equipment MVSV organized since 2004 in Moscow, which in 2010 has become the core exhibition within the International Forum "Engineering Technologies" held at the grounds of JSC "TVK "Russia" in Zhukovsky, Moscow Oblast.

The International Exhibition of Arms, Military Equipment and Ammunition "Russian exhibition of arms. Nizhny Tagil" at the grounds of the State Exhibition Centre of FSE Nizhny Tagil Institute of Metal Testing held in odd-numbered years is an attractive show and a salon of significant interest for foreign customers and partners. The pivotal and obvious advantage of this event is a unique test range which makes it possible to showcase in action a great deal of arms and large-sized samples of military hardware of the Land Forces.

The exhibitions organized in the Russian Federation proactively assist in promoting military-technical cooperation of the Russian Federation with foreign states and strengthening political and economic stands of Russia in various regions of the world.

Major areas of FSMTC of Russia activities shall be:

To perform control and supervision functions in the area of military-technical cooperation in compliance with laws of the Russian Federation;
To participate jointly with other federal government authorities in elaboration of state policy in the area of military-technical cooperation and submit in the established manner relevant proposals to the President of the Russian Federation, the Government of the Russian Federation, and Defense Ministry of the Russian Federation;
To ensure jointly with other federal government authorities implementation of key state policy guidelines in the area of military-technical cooperation as set by the President of the Russian Federation; and Within its competence and jointly with other federal government authorities, to implement state regulations in the area of military-technical cooperation.

In conformity with laws of the Russian Federation, FSMTC of Russia shall perform control and supervision functions relating to:

Compliance, of activities in the field of military-technical cooperation of federal government authorities, government authorities of the Russian Federation constituencies, and Russian organizations empowered in the established manner to carry out foreign trade activities regarding military purpose products, corporate developers and manufacturers of military purpose products, other legal entities, officials and individuals, with legal acts and regulations of the Russian Federation and key state policy guidelines in the field of military-technical cooperation, requirements of the Russian Federation laws on export control over procurement of military purpose products;
Implementation of underlying state policy principles in the field of military-technical cooperation including state monopoly;
Efficient functioning of state regulatory system in the field of military-technical cooperation;
Fulfillment of international treaties of the Russian Federation in the field of military-technical cooperation;
Activities in the field of military-technical cooperation of representative offices of military-technical cooperation–affiliated entities in the Russian Federation and foreign states, as well as those of other organizations;
Marketing, advertising, and exhibition activities in the field of military-technical cooperation;
Efficient application of funds allocated from the federal budget to finance activities in the field of military-technical cooperation, as well as efficient use of federal property by military-technical cooperation–affiliated entities;
Level of foreign trade prices for export and import military purpose products with due regard to protection of economic interests of the Russian Federation;
Level of local prices for military purpose products to be funded out of the federal budget, and supplied to foreign customers under international treaties of the Russian Federation.

FSMTC of Russia shall:

Submit in the established manner draft decisions of the President of the Russian Federation and the Government of the Russian Federation on deliveries of military purpose products to foreign customers, as well as on other foreign trade issues relating to military purpose products;
Develop jointly with federal government stakeholders conceptual approaches for higher MTC efficiency, as well as review trends in the development of the world’s market of military purpose products;
Elaborate jointly with federal government stakeholders draft international treaties of the Russian Federation in the field of MTC and submit in the established manner proposals for concluding and implementation of any such treaties;
elaborate and submit in the established manner proposals for working out a state defense order regarding export and import military materiel under international treaties of the Russian Federation;
make analysis of effective long-term international treaties of the Russian Federation providing for export military materiel adjusted for mutual debts, ability to settle them through goods exchange, and, if necessary, submit in the established manner relevant proposals;
participate jointly with federal government stakeholders in drafting proposals for establishment, suspension, termination and resumption of MTC;
submit in the established manner proposals for creating, composition and arranging activities of bilateral and multilateral intergovernmental commissions relating to MTC;
set up relationships in the established manner with international organizations relating to MTC;
be in charge of Russian sections of intergovernmental commissions relating to MTC as instructed by the President of the Russian Federation and the Government of the Russian Federation;
review orders of foreign customers for supplies of military purpose products, record them, appoint contractors among MTC-affiliated entities, agree with federal government authorities on contractors among corporate developers and manufacturers of military purpose products contracted for supplies of the said products, inform foreign customers on accepting their orders for consideration, and supervise preparation and approval of relevant draft decisions, monitor progress of implementation of orders of foreign customers for supplies of military purpose products by MTC-affiliated entities;
maintain record of orders of foreign customers for supplies of military purpose products placed directly with MTC-affiliated entities, and monitor progress of their implementation;
streamline and supervise activities of MTC-affiliated entities, review and summarize results of their activities;
maintain the register of MTC-affiliated entities and issue to them appropriate certificates;
maintain record and registration, approve contracts for foreign trade activities relating to military purpose products, as well as maintain control of implementation of those contracts;
if necessary, participate in talks conducted by MTC-affiliated entities with foreign customers for supplies of military purpose products;
submit in the established manner proposals for implementation of key objectives and performance of functions of representative offices of the Russian Federation in foreign states regarding MTC;
make proposals in the established manner for empowering corporate developers and manufacturers of military purpose products to carry out foreign trade activities and revoke the same from them;
arrange exhibitions and shows of specimens of military purpose products in the Russian Federation and foreign countries as required by the Government of the Russian Federation;
participate in working out proposals for MTC development with CIS-member states, and draft international treaties with those states on MTC issues;
maintain relationships with authorized authorities of CIS-member states relating to export of military purpose products to third countries;
take interdepartmental joint efforts relating to supplies and control over intended use of military purpose products under the Agreement of MTC Fundamental Principles dated 15 May 1992 between member states of the Organization of the Collective Security Treaty;
maintain record of man-portable air defense systems sold and acquired by CIS-member states and promptly notify stakeholder states and international organizations of man-portable air defense systems sold and acquired by the Russian Federation;
elaborate a consolidated volume of export military purpose products for the next year and control its performance;
sponsor research and development of MTC-related works including its information coverage;
streamline specialty retraining and skill enhancement system for staff involved in MTC;
communicate to foreign customers scheduled phase-out of spare parts, plants, units, devices, and completing articles, specialty, training, and support materiel required for operability of earlier supplied military purpose products, as well as report about results of such communications to MTC-affiliated entities; and perform as state customer for export and import operations in the field of MTC to be carried out under international treaties of the Russian Federation, as well as customer for research and development works on MTC information coverage.