Rosoboronexport looks at Russian opportunities in world markets

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IL Serge Pod #05.09.2001 07:12

Serge Pod


Rosoboronexport looks at Russian opportunities in world markets

4 September 2001

At the Moscow international air and space show in Zhukovsky Andrei Belyaninov, general director of the state company Rosoboronexport, Russia's largest arms exporter, said that the company was now negotiating export contracts worth $6.5 billion. So far this year Rosoboronexport had received $2.8 billion in export revenues against the 2001 target of $3.2 billion. The company's existing contract portfolio now stands at $13.1 billion.

Rosoboronexport says its estimates show that before 2010 the annual global market demand for combat planes will stand at 150 to 200 aircraft, training planes at 80 to 90 and military transport planes at 40. Annual global market for helicopters is estimated at 400 to 500. Rosoboronexport is confident Russian enterprises are capable of winning a considerable share of this market.

Belyaninov pointed to a certain "geographic bias" in the export of Russian military hardware with main buyers being India, China and countries in Southeast Asia. "In the meantime, there are whole continents where we are not present and we have been taking steps to change the situation. Recently we signed a contract with Uruguay on auto vehicle supplies. True, the contract is just over one million dollars but what is more important is that a precedent has been set. This was our first step into the South American market," Belyaninov said.

Commenting on the merger of three Russian state arms exporting companies in November 2000 Belyaninov said most foreign partners welcomed the creation of Rosoboronexport. "Over the past nine months we have managed to create a new market brand and make it well-known," Belyaninov said.

Russian military hardware is exported to more than 60 countries. Rosoboronexport aims at re-entering the markets earlier dominated by the Soviet exporters, primarily Eastern Europe and the Middle East. And Andrei Belyaninov is confident the company's annual revenues will soon be over $4 billion.


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