From
July 31st to August 2nd, a large meeting which was
attended by more than 150 participants was held in
Rostec with representatives of the State Corporation
in foreign countries. Heads of Rostec and a number
of holdings, industrial directors, heads of
departments of the central office spoke at the
meeting. Work with representatives was carried out
in the divisions of the Corporation and
Rosoboronexport for the purposes of analysis of the
2018 results and setting objectives for the near
future. More on the results of the year of the
export, plans and capabilities of Rostec in the
world – in our material.
Export Beats Records
2018, Rosoboronexport delivered products overseas
for a record amount of 13.7 billion dollars, the
largest for its entire period of existence. A solid
portfolio of foreign orders for the Russian military
equipment reached the figure of 55 billion dollars.
We managed to achieve these indicators in the
conditions of an utmost difficult foreign policy
situation, the most powerful sanction pressure on
the Russian defense industry complex, on the State
Corporation and its organizations, as well as unfair
competition. The final figures for the supply of
Russian military products and an impressive
portfolio of orders demonstrate that the efforts of
competitors did not lead to significant results.
Work of local level representatives of Rostec was of
great importance in achieving record results.
‘Last year’s record results are not the reason to
rest on our laurels. There are quite enough problems
in the sphere of Russian military-technical
cooperation. Firstly, it is settlements with
partners. The sanctions caused damage in this regard,
although this issue can be resolved, including by
converting contracts into national currencies.
Secondly, the difficult geopolitical situation does
not allow us to count on a sharp increase in
militarytechnical cooperation in the near future’,
noted on the current situation Sergey Chemezov,
General Director of Rostec.
Today, Rostec representatives around the world are
doing a great job of finding new markets, but this
is a long and laborious process. A possible solution
here could be to increase the share of exports of
civilian products and technologies from Rostec.
Transition to Civilian Tracks
The State Corporation’s development strategy until
year 2025 sets ambitious goals of increasing the
share of civilian products in total revenue up to 50
percent. This indicator amounted to slightly more
than 30 percent according to the results of 2018.
Significant increase of the civilian products
production which are in demand both in the Russian
and foreign markets is to be made in the next five
years. Rostec representative offices in foreign
countries have an important informational and
analytical role in solving this problem.
Their task is to provide the Corporation and its
organizations with the required information, data on
potential partners and recommendations for entering
new markets. It is due to the close and productive
cooperation with Rostec representative offices that
Corporation organizations will be able to form an
effective sales system and competently build service
processes for their civilian products. Extensive
experience in cooperation with foreign structures
through the MTC will help Rostec representatives
organize the promotion of Russian civilian products.
The work of representative offices in the most
technologically advanced countries of the world has
its own peculiarities. It should be aimed primarily
at attracting technology and investment in Rostec
organizations. It is planned to pay more attention
to the promising Asian direction in this matter:
India, China, South Korea, Singapore and other
countries. Unfortunately, due to the sanctions
imposed, cooperation with Western companies in the
field of technology transfer and joint Research and
Advance Development seems extremely difficult. ‘They
lose their business opportunities, money and the
voluminous Russian market at the same time’, added
Sergey Chemezov. – But this is the choice of the
political leadership of Western countries. I think
that is short-sighted.‘
Peaceful Products for the Whole World
If Russian weapons are traditionally in high demand
all over the world, then in the ‘civilian‘ sphere we
have to work more actively. Rostec is a unique
conglomerate of defense industry enterprises with
great opportunities for diversification of
production. The corporation can offer the world
community a wide range of civilian products.
For example, the Russian Helicopters holding company
introduces new models of civilian helicopters for
various purposes on the market. The multi-purpose
Ansat and Mi-171A2 vehicles made a demonstration
tour in countries of the Southeast Asia in 2018,
which resulted in the signing of a number of
contracts. The civilian sector of the domestic
helicopter industry is actively developing, and the
excellent reputation of our military vehicles helps
to promote the civilian ones abroad. A lot of work
is being done on after-sales service and repair of
helicopter equipment on the spot. Such a
corresponding center was opened in Peru last year,
it is planned to open centers in other countries.
The organization of a support system for the entire
life cycle of Rostec products abroad is one of the
promising areas of the Corporation's development.
The Shvabe holding company offers comprehensive
lighting projects Svetly Gorod (Bright city) for the
cities, which have been successfully implemented for
several years in the regions of Russia. In addition,
Shvabe and other Rostec enterprises in cooperation
carry out the construction and equipping of medical
centers, including the production of modern neonatal
equipment. Today, Schwabe medical equipment is
supplied to 95 countries.
Another example of the civilian products that can
adequately represent the State Corporation in the
world are telecommunication equipment and robotics
of the Roselectronika holding. The most striking
civil project of the holding, implemented in 2018,
was the construction of information and
telecommunications infrastructure for the Football
World Cup. The solutions of Roselectronics ensured
the unprecedented quality of television broadcasts
and uninterrupted communication for viewers from 220
countries.
KAMAZ heavy load trucks and specialized machinery
are also actively exported. The auto giant shipped
just over 4 thousand cars and assembly sets of parts
in 2018 only. KAMAZ was recognized as the Best
Russian Exporter 14 times. PJSC AvtoVAZ does not
fall behind KAMAZ and: the export of a passenger car
manufacturer in 2018 increased by 57percent compared
to the previous year and amounted to about 38
thousand cars. Lada branded cars are sold in 34
countries.
The Rostec strategy is determined up to the year
2025 and involves solving the problem of the State
Corporation reaching the level of global players.
The development is focused on the production of
smart civilian products and their promotion in
fast-growing world markets, as traditional markets
have already reached maturity. And here the role of
Rostec representatives in foreign countries is
significant. Using their knowledge, experience and
connections, they promote new Russian products for
the market, find out the needs of local businesses
and government agencies, formulate product
requirements and, importantly, service. The
development of the export capabilities of the
Corporation is mostly in their hands.