Rosoboronexport yearly sales to stand at approx. $13 bln for next 3 years - Rostec
MOSCOW. Nov 15 (Interfax-AVN) - The Rosoboronexport development strategy in the period until 2020 has been approved by the company's board of directors, the Rostec state corporation said.
"The document envisages that the deliveries made by Rosoboronexport, which accounts for more than 80% of Russia's total military exports, will be retained at the current level, approximately $13 billion, in 2013-2016," says a Rostec report obtained by Interfax-AVN on Friday.
The new strategy "will preserve Russia's leading positions on the global arms market despite increasing competition with other states," the report said.
"Rosoboronexport has long earned the reputation of a reliable and fair partner that operates in strict compliance with international laws," Rostec General Director, Rosoboronexport Board of Directors Chairman Sergei Chemezov said. "The new strategy will strengthen positions of Russia on the global arms market. There is every prerequisite for doing so."
"A key goal of the strategy is to broaden the geography of foreign customers and the range of services," Rosoboronexport General Director Anatoly Isaikin said. "It is also planned to foster relations with enterprises of the defense sector, including armament research and development programs, modernization and disposal of armaments."
Rosoboronexport expects to broaden its participation in international cooperation projects of the development, production and distribution of military products. Rostec has proposed to entitle leading organizations of the corporation's holdings to direct post-sale maintenance of military hardware delivered to foreign clients.
The global arms market has been growing by approximately $3-3.5 billion per year since 2000. More than 70% of military exports have been supplied in recent yeas by the top five states - the United States, Russia, France, Germany and the United Kingdom. However, the number of arms exporting countries is growing and competition between the champions is increasing. Meanwhile, 55% of global acquisitions of military products fell on only 13 countries in the past five years.
Rosoboronexport was established in November 2000 in line with the Russian president's ordinance through the merger of Promexport and Rosvooruzhenie. Rosoboronexport augmented its sales by nearly four times, from $3.2 billion to $12.9 billion, in 2001-2012. "The sale dynamics of 2013 shows that the targets of this year will be achieved. The company's portfolio tops $35 billion. Russia ranks second in the world in terms of arms exports," the report said.
