A: Last year the volume of Russian military export that went via my organisation amounted to $5.12 billion. That is more than 90% of the total for all Russian arms exporters. Aviation items and space services accounted for over 60% of my company's export volume.
We bid in almost all large international tenders for tactical fighters and combat helicopters. In most instances, our offers tended to be among the best in terms of price/quality ratio - Russia is traditionally strong in that. A new thing is that our offset programmes and licence production offers on both military and civil products have tended recently to win customer appeals.
Sukhoi and MiG jets, Mil and Kamov helicopters have remained among best-sellers in the international market. Russian aviation products have been winning new customers in various parts of the globe with their reputation for competitiveness and reliability in operation.
Q: Can you name major projects with Western countries, particularly France, that Rosoboronexport and Russian aerospace companies are involved in?
A: Russian companies possess some modern technologies and solutions to do with upgrade and modernisation of in-service weapons systems. Therefore, they are interested in participation in international tenders in the roles of head contractors or subcontractors.
The key to success in such projects is to provide long-term partnerships on equal terms. We believe that the best solution is industrial co-operation based on mutual benefits and long-term relationship. We already have a few positive examples.
For instance, EADS and missile maker MBDA are in agreement with Sukhoi and Rosoboronexport on future military systems. The respective protocol was signed sometime ago. It determines areas for our co-operation. These include unmanned air vehicles (UAV), use of MBDA missiles on Sukhoi aircraft, joint programmes on maintenance of certain aircraft types, their upgrade and modernisation.
French avionics items from Thales and Sagem are integrated onto customised variants of the MiG-29 and Su-30 fighters. Also, there is an agreement with Sagem on joint work on upgrade of Mi-24 helicopters.
Russian and French companies are increasingly involved in joint development of avionics items. For example, France's Sagem and Russia's Tekhnocomplex scientific-production centre have plans to start work in 2005 on development of the LINS-2000 laser inertial navigation system.
The Russian and French governments have tended to be more active in support of aviation programmes that call for joint development of future systems. In the past few years the two countries put a lot of effort into perfecting the MiG AT jet trainer equipped with Snecma engines and Thales avionics. Today, Russia and France have redoubled efforts to promote the aircraft in the international market.
Also worth mentioning is a protocol between Snecma, Rosoboronexport, Sukhoi and Saturn for joint development of aero engines for new era manned and unmanned military aircraft.
Q: In the past few years the focus of Russian export programmes has tended to shift to joint development and production of Russian systems under licence. Do you think that, having mastered Russian technologies, India and China will discontinue their relations with Russian partners and produce modern systems without outside help?
A: The Russian defence industry demonstrates its outstanding capabilities as a reliable strategic partner as it carries out long-term programmes in China and India. These programmes include direct deliveries and also transfer of technologies and licence production.
Let's take India for instance. In accordance with the agreement on long-term co-operation between our countries, the Russian industry delivers equipment and renders help to the local manufacturers in setting up local production of military systems for all services of the Indian armed forces. It also acts as co-developer in some new weapons programmes.
This direction is most promising not only for Russia. Other countries also go this way. Co-operation in development and production of modern military equipment is a global trend. It is no longer possible to keep your market position if you restrict your offering to direct deliveries of ready-to-use products.
I think the future belongs to such co-operative projects as the Brahmos and Multirole Transport Aircraft (MTA). Russia and other exporting countries have a number of such projects.
I think it does not make sense to speak of would-be bad consequences in this case. India and China continue to enjoy the status of priority strategic partners for Russia. This also includes military technical co-operation.
Q: What are your comments on Rosoboronexport becoming more active in its effort to control Russian export-oriented manufacturers?
A: We are interested in expanding our presence in large vertically-integrated companies that are being created under directives of the Russian government. We want to be visible and influential there. We want to play our role in control of such companies with large export backlogs.
Our goals are to maintain links within the industry and strengthen them for the sake of higher efficiency. Today, Rosoboronexport is represented on the boards of more than 20 Russian export-oriented companies and holding structures. The list contains Sukhoi, Almaz-Antei, Tactical Missile Corporation, Irkut, Helicopter Holding and others.
Our timely corrective inputs in the control of certain defence enterprises have helped them save unique technologies and production capabilities. We also offer our creative ideas when it comes to production and upgrade of military equipment. We have a strategic programme on Rosoboronexport involvement in the process of forming vertically integrated structures, concerns and holdings. In particular, we have accepted a role in forming the so-called Mi-Helicopters.
Q: Please clarify the role Rosoboronexport plays in the merger of Russian helicopter companies?
A: In November 2004 the president of the Russian Federation issued a decree on inclusion of developers and manufacturers of Mil helicopters into this merger. The list contains the Moscow Helicopter Plant (Mil design house), Kazan Helicopters, Ulan-Ude aviation plant, Vpered Moscow machinery plant and Stupino machinery-building industrial enterprise.
The Russian government anticipates a sizeable effect from the merger. It would greatly strengthen positions of the Mil developers and manufacturers, and Russian helicopter makers in general, on the international market.
The state will hold 51% of shares in the merger. A leading role in the creation of the new integrated structure is given to United Industrial Corporation (Oboronprom). At this time Rosoboronexport and the federal agency for property are equal joint owners of this structure.
We are optimistic about export potential of Russian helicopters. There have been several new orders recently. They have extended the geographical coverage for Mil helicopters.
This year Venezuela awarded us a contract. This country will become a large operator of Mi-17 transport helicopters in Latin America. There are some good prospects for Mil products in other Latin American countries.
Deliveries of Mi-35 helicopters have started to The Czech Republic, as payment for Russian state debts.
Russian helicopters are operated and popular in Mexico, Colombia, India, China and other countries.
We are set to pay more attention to the issues of maintenance, spare parts delivery, scheduled and non-scheduled repair work. For this purpose we continue working on creation of maintenance and repair centres around the globe, with participation of Mil design house. These centres would offer comprehensive packages to end-users, helping them properly maintain and operate Russian-made equipment.
Q: What has Rosoboronexport brought to Paris this time?
A: Rosoboronexport is again the organiser of the Russian exposition. We represent over 40 enterprises and organisations of the Russian military industrial complex. Over 250 equipment items, mockups and models are on display in our pavilion.
Traditionally, the Russian exposition contains all export versions of Sukhoi jets. This time it again includes the Su-30MK family of multirole fighters, Su-32 fighter-bomber, Su-39 attack aircraft with Kopyo radar set and Su-47 experimental fighter with forward-swept wing. You can see models of the MiG-29 fighter and MiG AT jet trainer on the RSK MiG stand.
Sukhoi has chosen to focus at the show on modernisation and upgrade of the Su-27, the most numerous fighter in the inventory of the Russian air force. The type is also popular with other nations' air forces. The Su-27SKM on display here incorporates some of the best upgrade ideas.
A considerable part of the Russian exposition is taken up by rotorcraft. The Mil grouping demonstrates a number of new versions and models, including Mi-171Sh transport-assault and Mi-35M attack helicopter. There is also the Mi-28NE next-generation attack helicopter.
Kamov products on display are Ka-50, Ka-60 and Ka-31.
Speaking of rotary wing machines, I would like to mention an increasing demand for helicopters able to work reliably in hot-and-high and adverse weather conditions, while maintaining their capabilities to detect, select and strike targets with high accuracy. Rosoboronexport offers some solutions. We are ready to fulfil requests in that area.
Wrapping up, I would like to express hope that such a sizeable Russian participation at Paris will facilitate further development of military technical co-operation between Russia and other countries in aerospace.
Source: Flight Daily News