Rostec Сorporation official statement

Rostec Сorporation official statement


We regret that new sanctions have been imposed. Unfortunately, European politicians do not listen to the voice of business. The European Union escalates the conflict, even now when there is a real potential for a ceasefire and stabilisation in Ukraine.

Undoubtedly, cooperation between Russian and European industries is much broader and deeper than between anyone else. Yet those who impose sanctions should understand that such cooperation is double-sided. Both sides will suffer as a result of a breakdown.

The sanctions can essentially be divided into several categories.

The first category includes concerns Machine Engineering Technologies, Kalashnikov, Sirius, holdings High Precision Systems (“Vysokotochnye Kompleksy”) Stankoinstrument, RT-Chemcomposite, Tula Arms Plant (JSC "Tulsky Oruzheiny Zavod") and NPO Basalt. The sanctions will not have an impact on state defense order production, because no European components are used in military production.

However, these sanctions will have an impact on European military industrial enterprises whose products are used in military production supplied by Rosoboronexport to third country markets. According to preliminary estimates, losses on the European side may amount to up to $1 billion in the short term.

The second category includes sanctions against Oboronprom. This holding has not sought and does not seek loans from European banks and other foreign financial institutions. Bond issues of Oboronprom are purchased by Russian banks (in particular, VTB). As a result, a new round of sanctions will have no impact on the holding's current business activities.

Sanctions against the Director General of Rostec, Sergei Chemezov, apply to his property and accounts opened in European banks. All Mr. Chemezov’s property and funds are held in Russia. In this regard, the EU sanctions will not have a significant impact.

The imposed sanctions will encourage the expansion of import substitution programs and will accelerate the process of developing and implementing new domestic technologies. Rostec has all the necessary intellectual and financial resources to address these issues.