Russian-Malaysian cooperation

Mikhail Petukhov: «We believe that the test of time is the best advertisement one can ever have»

Federal Service for Military-Technical Cooperation ('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. The Russian Federation has a very effective system to manage military-technical cooperation with foreign states. The main element of this system — 'FSMTC of Russia'. Before the LIMA-2017 «Russian Aviation & Military Guide» magazine asked a few questions to the head of the official Russian delegation at LIMA-2017 exhibition, deputy director of ‘FSMTC of Russia’ Mikhail Petukhov.

— Mr. Petukhov, what types of Russian military equipment are the most familiar in Southeast Asia? In what areas cooperation is most active today?
— As per the volumes of Russian defense products’ exports to the Southeast Asian countries aviation is number one. As we all know, Southeast Asia (SEA) has historically been a naval region. Therefore naval equipment is in high demand here as well. We also cooperate in the field of the land forces materiel. Our partners are interested in the newest highly maneuverable land systems and equipment designed on the modular basis.

Our equipment is well-known in the countries of Southeast Asia. And, as far as we know, our partners are quite satisfied with its technical parameters and operational capabilities. We believe that the test of time is the best advertisement one can ever have.

— What main competitive advantages does Russian military equipment have in terms of being used in the region?
— The main competitive advantage of Russian defense equipment is the optimum ratio of price, quality, reliability, easiness of operation and maintenance. Russian defense manufacturers are also ready to offer overhaul and repair on the spot without involving their technicians, which makes repair easier and much cheaper.

Talking of the specific conditions in Southeast Asia related to defense equipment operations one should not forget that the region has extreme climate and landscape. Despite this, our equipment has proved its high capacity, reliability and efficiency in all types of difficult conditions.

— When did the military-technical cooperation between Russia and India start?
— The military-technical cooperation with some of the Southeast Asian countries has a story that totals dozens of years. For example, the military-technical cooperation with the Republic of Indonesia has been successfully developed since 1958. But it is not about the dates. We are happy with the open and constructive mode of cooperation we share with both our traditional and new partners in the region.

— What can the Russian Federation offer to its partners form SEA in terms of modernization of Russian military equipment?
— Initially all exported Russian military products have a huge potential for modernization, and the military equipment supplied to SEA is no exception.

Proceeding from the nomenclature of the materiel previously supplied to the Southeast Asian countries, our customers are, mainly, interested in modernization of aviation and helicopter equipment, as well as air-defense means.

Jointly with our partners we analyze their requirements pertaining to modernization of defense equipment that has been supplied to them earlier. We always try to find a mutually beneficial solution that would cater to their needs. Russian companies are flexible in the issues of repair and modernization, we are always ready to make a step towards our partners.

— What pieces of equipment presented at LIMA-2017 will potentially raise high interest among partners?
— Well, at LIMA-2017 we will showcase a wide range of defense solutions. Certainly, aviation equipment will be of interest to our partners. I primarily mean our fighter jets of the ‘Sukhoi’ and ‘MiG’ families as well as Yak-130 aircraft. We hope that partners will show interest in the Russian naval equipment, including project 636 diesel submarines, ‘Gepard’ patrol ships, missile and patrol boats of various classes. Our experience at previous exhibitions in Southeast Asia show that potential customers display interest in air defense missile systems and complexes and antitank guided missile systems of Russian produce.

— Is Russia ready to consider joint ventures in SEA countries? Is there any existing experience of such kind of cooperation?
— Setting up joint ventures on repair and maintenance of Russian arms and military equipment, as well as building service maintenance centers on the soil of foreign customers is a major backbone of after sale support system for defense products. Russia is ready to offer joint venture (JVs) to the countries of Southeast Asia with which we cooperate actively in the military-technical field. Moreover, we already have positive experience of JVs in SEA.

For instance, in Malaysia the service maintenance center for Su-30MKM is put into operation. In the Republic of the Union of Myanmar the project of building a service maintenance center for MiG-29 fighters is well under way. Together with the leading Indonesian industrial enterprises we consider setting up similar centers for helicopters and armor materiel repair and servicing in the country. Whereas in the Socialist Republic of Vietnam we are planning to establish naval servicing centers for submarines and surface ships. Hope all these projects will soon be operational.

The military-technical cooperation with some of the Southeast Asian countries has a story that totals dozens of years. For example, the military-technical cooperation with the Republic of Indonesia has been successfully developed since 1958. But it is not about the dates. We are happy with the open and constructive mode of cooperation we share with both our traditional and new partners in the region.

The main competitive advantage of Russian defense equipment is the optimum ratio of price, quality, reliability, easiness of operation and maintenance. Russian defense manufacturers are also ready to offer overhaul and repair on the spot without involving their technicians, which makes repair easier and much cheaper. Talking of the specific conditions in Southeast Asia related to defense equipment operations one should not forget that the region has extreme climate and landscape. Despite this, our equipment has proved its high capacity, reliability and efficiency in all types of difficult conditions.

Jointly with our partners we analyze their requirements pertaining to modernization of defense equipment that has been supplied to them earlier. We always try to find a mutually beneficial solution that would cater to their needs. Russian companies are flexible in the issues of repair and modernization, we are always ready to make a step towards our partners.

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.