Rostekh may entrust its holdings with servicing military hardware
MOSCOW. May 24 (Interfax-AVN) - Rostekh has proposed to entrust its holdings with direct provision of services to military hardware importers, says a state corporation report obtained by Interfax-AVN on Friday.
"Rostekh's Rosoboronexport will continue to deliver military end products, while holdings may offer services and sell parts directly to foreign partners," the report runs.
"Regulations on military-technical cooperation with foreign countries shall be adjusted for consistency with present-day arms market realities," Rostekh General Director Sergei Chemezov said.
"Service and after-sale maintenance are essential for being competitive on the global market. Bearing in mind the current level of defense industry development, we are confident that holdings of the corporation can render efficient services and deliver parts for military hardware sold earlier on their own. We will make this legislative initiative shortly," the press service quoted Chemezov.
The idea of a centralized arms and military hardware exporter was accomplished in May 1953 with the establishment of the Main Engineering Department. Disintegration of the former Soviet Union broke up many partnerships. Exports dipped to a record low level of $1.7 billion per annum in the 1990s. "The military-technical policy of the country started changing. The president took personal control of the sector and military exports began to grow. Rosoboronexport was formed in November 2000 at the initiative of Sergei Chemezov through the merger of Promexport and Rosvooruzhenie and became the main carrier of state interests on the global arms market. At present Russia is the world's second biggest arms exporter, after the U.S. It controls over 25% of the global [arms] market," the report said.
"The presidential vertical allowed Russia to restore military-technical cooperation with foreign countries, to promote Russian military products on foreign markets and to provide our economic and foreign political interests," Rosoboronexport General Director Anatoly Isaikin said. Company sales stood at slightly more than $5 billion in 2003 and hit a record of $12.9 billion in 2012, he said.
The company's order portfolio tops $34 billion. Besides, foreign customers are considering contracts valued at about $11 billion, Rostekh said.
