Russian arms exports portfolio stands at $48 billion

Russian arms exports have tripled in the past eleven years, from $5 billion to $15.3 billion in 2014, Director of the Federal Service for Military-Technological Cooperation (FSMTC) Alexander Fomin said on Friday. "The export order portfolio of the Russian defense sector stands at $48 billion," he added.

It was announced on Friday that Russia is ready to lease a second Project 971 Shchuka-B submarine to India for a period of ten years. Source: wikipedia.org

Russian arms exports have tripled in the past eleven years, from $5 billion to $15.3 billion in 2014, Director of the Federal Service for Military-Technological Cooperation (FSMTC) Alexander Fomin said on Friday. "The export order portfolio of the Russian defense sector stands at $48 billion," he added.

The 2014 exports plan was met 99.5 percent, Fomin said. "We planned to deliver $15.59 billion worth of products but the actual cost of deliveries was $15.3 billion. Foreign currency revenue exceeded $14 billion," he noted.

"The state-run intermediary Rosoboronexport exported $13.2 billion worth of military products in 2014 or 85 percent of total military exports," Fomin said. "The share of other entities involved in military-technological cooperation projects was 15 percent or $2.3 billion."

In his words, Russian Aircraft Corporation MiG, United Shipbuilding Corporation, Almaz-Antei Concern, the Urals Optical-Mechanical Plant, Tactical Missiles Corporation and Admiralty Shipyards were the most successful in 2014.

"Exports of Russian Defense Ministry stock were extremely large in 2014, over $1.3 billion," Fomin stated.

"Products worth of over $120 million were supplied within the CSTO framework, and the order portfolio grew to $620 million," he said.

Vigorous marketing campaigns conducted by various Russian organizations have allowed Russia to maintain its positions on the global arms market, Fomin said on Friday. "Contracts worth over $15 billion were signed last year alone," he said.

When commenting on the structure of Russia's military-purpose exports, Fomin said that "it is still dominated by aircraft (44 percent), to be followed by hardware for the Land Forces (26 percent), air defense systems (15 percent), naval hardware (12 percent), and other systems (3 percent)."

"Asia (60 percent) remains the biggest market" for Russian military-purpose products, he said.

"Our main partners there are India and China. Vigorous cooperation continues with Vietnam, Malaysia and Myanmar as well," he said.

Africa accounts for 33 percent of Russia's military-technological cooperation deals, Fomin said. "Our major markets in this region are Algeria and Egypt. In South America our leading customers are Venezuela, Brazil, Peru and Argentine. This region accounts for 5 percent of the overall volume of our military produce exports, and Europe accounts for 1 percent," Fomin said.

At the same time, Russia has dropped out of about 30 sectors of the global arms market or is in the process of doing so, chief of the Rosoboronexport general director's advisory team Alexander Brindikov said on Friday.

"We are monitoring 64 sectors. We have either quit practically half of market segments or are leaving them now," he said at a meeting of the Federation Council's Expert Board.  This is not about marketing, Brindikov added. "The reason is that we are not competitive in these segments," he said.

"We have a very serious rivalry with China and, naturally, with Germany. I would say that Ukraine has also challenged us," Brindikov said. Ukraine has become a stronger rival in the sales of armored personnel carriers, he said. "So, we have left because we are not competitive. We have problems with the industry, with the delivery of such vehicles," Brindikov noted.

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