Rosoboronexport Top Official Says Company's Major Task Is To Conquer New Markets
Source : Rosoboronexport ; issued Dec. 11, 2001)


MOSCOW --- In an interview with Nezavisimaya Gazeta daily on Tuesday Rosoboronexport's First Deputy General Director Sergei Chemezov said that during the first year of company's activity it had "succeeded in maintaining the pace and volume of arms sales."

"I would like to highlight that as our main achievement. As of now, we have already surpassed the target for hard currency revenues set for Rosoboronexport by the government and the president. We have collected $3.6 billion, while the volume of supplies in money terms will amount to $3.3 billion by year-end. Thus, for the first time in history we received our hard currency revenues ahead of supplies," Chemezov added.

Chemezov said he expected that Russia could count on boosting arms exports to Arab countries and Africa. "That is the prospect we should work for. But, of course, we should not forget Latin America. Unfortunately, Latin American sales are now slightly lagging behind, although the predecessor team, which worked for Rosvooruzheniye, took active measures to boost sales in that market. I think one of our major goals is to achieve serious changes in that sector."

He also said that aircraft, primarily fighters produced under the Sukhoi brand, accounted for the majority of Russia's arms exports, totaling about 65-70%.

Speaking about the attempts of Russian arms producers to enter the world markets on their own, Chemezov said, "My unambiguous opinion is that the end products should be distributed by a sole state agent. It is the state representative that should promote Russian products abroad, penetrate new markets. The producers should follow the state agent, supplying spare parts, providing repair and post-sale services."

Chemezov also said that Rosoboronexport's commission was 1% to maximum 5% of the contract's volume. "I know only two or three cases when the commission was over 5%. In all other cases the commission, as a rule, does not exceed 5%. Our commission amounts to 1-2%, when the arms are supplied from the Defense Ministry's stock. In this case, we do not aim at taking high profits. We just cover our expenses on selling arms that the Defense Ministry does not need," he said.

"There should remain the sole state agent, which would sell the end products. Our major task is penetrating new markets, conquering them, promoting Russian arms," Chemezov added.

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