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PDF Russian Aviation & Military Guide, 2017
Russian Aviation & Military Guide ¹ 09(16) October, 2017
Russia at the BIDEC-2017

Russia at the BIDEC-2017

Rosoboronexport develops military and technical cooperation with Bahrain

Rosoboronexport (part of the Rostec State Corporation) notes the increasing interest of the Middle East and North Africa countries in the progressive development of the military and technical cooperation with the Russian Federation. In this context, being invited by the Kingdom of Bahrain, an official Rosoboronexport delegation will head to Manama in October to take part in the BIDEC-2017 International Defence Exhibition & Conference, which is to be held under the auspices of His Majesty King Hamad bin Isa Al Khalifa, King of Bahrain.

‘In 2015 our countries signed an agreement on military and technical cooperation. In line with the document, Rosoboronexport already in 2016 made several supplies of the Russian defence products for the Bahraini armed forces, including the “Kornet-E” anti-tank missile launcher and close combat weapons. Several contracts were signed this year. Besides, currently we are actively negotiating a possibility to provide a wide range of military equipment and materiel for our partners,’ said Alexander Mikheev, Rosoboronexport’s Director General.

Sergey Goreslavskiy, company’s Deputy Director General, is appointed head of the Rosoboronexport’s delegation to the 1st International Defence Exhibition & Conference BIDEC-2017.

‘Rosoboronexport highly appreciates Bahrain’s interest in the Russian weapons. Active development of bilateral cooperation and good relations between our countries, undoubtedly, influenced positively the decision to take part in the BIDEC-2017. At the exhibition we are going to set up a unified Russian exposition where Rosoboronexport will demonstrate all the state-of-the-art Russian weapon systems to the representatives of the armed forces of Bahrain and other Middle East countries. It is expedient to mention that those weapon systems have already shown their worth in the region: aggregate proportion of the Middle East and North Africa countries in the volume of the company’s exports in 2016 made up around 50 percent. This is the highest rate in this market of weapons throughout the whole period of Rosoboronexport’s operation,’ added Alexander Mikheev.

Rosoboronexport is performing a wide range of marketing activities in the countries of the region, also by accelerating its advertising and exhibition activities. Earlier, at the International Aviation and Space Salon MAKS-2017 Rosoboronexport confirmed to the Kingdom’s Minister of Transportation and Telecommunications Kamal bin Ahmed Mohammed its intention to take part in the Bahrain International Airshow-2018".

It is important to remember that only Rosoboronexport has the right to supply the world market with a full range of arms and military equipment manufactured by Russia’s 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.

Rosoboronexport was set up by RF President’s Decree as a federal state unitary enterprise tasked to implement the national policy in the area of military-technical cooperation between Russia and foreign countries. Since 1 July 2011 Rosoboronexport has been operating as an open joint stock company. Rosoboronexport operates under the strict supervision of the Russian President, the Russian Government and in full conformity with the UN arms control treaties and the relevant international agreements.

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 Russia’s 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.
Rosoboronexport is the only state-owned arms trade company in the Russian Federation authorized to export the full range of military and dual-purpose products, technologies and services. It is a subsidiary of the Rostec Corporation. Founded on 4 November, 2000, now Rosoboronexport is one of the leading world arms exporters to the international market. Its share in Russia's military exports exceeds 85 percent. Rosoboronexport cooperates with more than 700 enterprises and organizations in the Russian defence industrial complex. Russia maintains military technical cooperation with more than 70 countries around the world.

Rostec State Corporation is a Russian corporation that was established in 2007 to facilitate the development, production and export of high-tech industrial products designed for civilian and military applications. The Corporation comprises over 700 organizations that are currently part of 11 holding companies operating in the military-industrial complex and 3 holding companies working in civilian industry, as well as 80 directly managed organizations. Rostec's portfolio includes well-known brands such as AVTOVAZ, KAMAZ, Kalashnikov Concern, Russian Helicopters, VSMPO AVISMA, UralVagonZavod, etc. Rostec companies are located in 60 constituent entities of the Russian Federation and supply products to more than 70 countries. In 2016, the consolidated revenue of Rostec amounted to 1 trillion 266 billion rubles, while the consolidated net income and EBITDA amounted to 88 and 268 billion rubles respectively. In 2016, the average salary in the Corporation was 44,000 rubles. According to Rostec strategy, the main objective of the Corporation is to ensure that Russia has a technological advantage in highly competitive global markets. Rostec's key objectives include the introduction of a new techno-economic paradigm and the digitalization of the Russian economy.
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