PDF Russian Aviation & Military Guide, 2017
Russian Aviation & Military Guide ¹ 01(08) February, 2017
Military-technical cooperation

Military-technical cooperation

Rosoboronexport: more than 85% of Russia's arms exports

On November 4, this year JSC Rosoboronexport (part of the Rostec State Corporation) will mark its 17th anniversary. 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 was set up by the RF President’s Decree in 2000. This is a 100% state-owned company.

The Joint Stock Company Rosoboronexport, part of the Russian Technologies State Corporation, is the sole Russian state intermediary agency responsible for import/export of the full range of defense and dual-use end products, technologies and services. Rosoboronexport was set up by RF President’s Decree 1834 of 4 November 2000 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.

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.

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$ 45 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 1 July 2011 Rosoboronexport has been operating as an open 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.
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