The company’s 2012 shipments of military equipment to 60 countries up 20% year-on-year

Moscow, February  13, 2013
Press release

Rosoboronexport shipped approximately US$ 12.9 billion worth of military goods to 60 countries in 2012, with assistance from Rostechnologii Government Corporation (Rostec) – a 20% increase year-on-year. Exports composition became more balanced, with the greatest share – 37% of the total – going to aviation equipment.

The Russian Foreign Ministry’s Press Center hosted a press conference with Anatoly Isaikin, General Director of Rosoboronexport, a Rostec company, on February 13, 2013, to disclose the company’s full-year 2012 results. In addition, discussion at the press conference touched upon various matters of military technology cooperation between Russia and other countries.

Rosoboronexport shipped approximately US$ 12.9 billion worth of Russian military goods to 60 other countries in 2012 as exports, up from US$ 10.7 billion in 2011 and US$ 8.7 billion in 2010.

The composition of exports became more balanced by equipment type in 2012. Aviation equipment accounted for most of the shipments with 37% of the total. At the same time, the value share of weapons, military equipment and systems for ground troops expanded to 27% of the total. The share of naval equipment and air defense systems also increased – to 18% and 15% of the total, respectively. Exports of other types of military products contributed around 4% to the total. The breakdown of Russian military exports by equipment type is generally in line with the current global trends.

“Even through competition on the global armaments market increases, Rosoboronexport expects to see continued growth in our key numbers in 2013,” the company’s General Director Anatoly Isaikin said. “We are optimistic because Russian military products are highly competitive.”

Southeast Asia and Asia Pacific were the primary destination for Russian weapons and military equipment in 2012 (with 43% of the total). The Middle East, Southwest Asia and North Africa are the second most significant regional market for Rosoboronexport (with 23%). Latin America accounts for another 18%. The company has been able to keep exports to the former Soviet Union (FSU) at a reasonably high level, selling 12% of total exports to this market. Sub-Saharan Africa contributed 1% to the total, while the share of Europe and North America was 3%.

Rosoboronexport received 1,877 requests and expressions of interest from international customers and prospects in 2012. After review of incoming requests, 1,309 contracts were signed, a 2.5x increase over the previous year. Rosoboronexport’s current contract portfolio exceeds US$ 37.3 billion, with contracts signed with 65 countries.

The aggregate amount of new aviation equipment contracts in 2012 increased by a factor of 1.9 year-on-year, the total amount of new contracts for armaments and military equipment for ground troops increased by a factor of 2.9 year-on-year, the value of new air defense systems contracts more than doubled (a 2.1x increase), while the value of naval equipment contracts increased by a factor of 7 year-on-year. As in previous years, finished, ready-to-use weapons and military equipment accounted for the bulk of 2012 contracts – 62% of the total contract value, up from around 40% in 2011. Spare parts, components, accessories and attachments accounted for 17.1% of the total contract value. Contracts dealing with organization of and support for production of Russian weapons and military equipment and systems overseas under license accounted 5% of the total contracted value. Repairs of previously delivered weapons, military equipment and systems contributed 1% to the total.

Rosoboronexport explains the strengthening of its positions going forward with promotion of Sukhoi and MiG fighters, Yakovlev Yak-130 military trainer aircraft, Mil and Kamov helicopters, antiaircraft missile systems and complexes Antey-2500, Buk-M2E, Tor-M2E, Pantsir-S1, Igla-S man-portable SAM, Project 11356 and Gepard 3.9 frigates, Project 636 and Amur-1650 submarines, Svetlyak patrol boats and Molniya missile corvettes, upgraded T-90S tanks, BMP-3 personnel carriers and derivatives, Tigr armored cars, Cornet family of anti-tank missile launchers.

Rosoboronexport OJSC is the only government-run organization in Russia to export the entire spectrum of defense and dual-purpose products, services and technologies, operated as part of Rostec Corporation. Rosoboronexport is one of the global leaders in the armaments market. The company accounts for more than 80% of Russian exports of weapons and military equipment. Rosoboronexport collaborates with more than 700 of Russian defense manufacturers and suppliers. Russia has a wide geography of military technology cooperation, spanning more than 70 countries around the world.

Rostechnologii State Corporation is a Russian government corporation established in 2007 to promote design, manufacture and exports of high-tech manufacturing products for civilian and military use. The corporation comprises 663 companies and organizations, currently grouped under eight holding companies in the defense industry sector, and five companies in civilian manufacturing sectors. Rostec subsidiaries lie in 60 Russian regions, shipping their products to the markets of more than 70 countries around the world. Rostec generated RUB  45.6 billion in net earnings in 2011, paying RUB 100 billion in federal, regional and local taxes.

Media contact:
Alexey Ventslovsky
+ 7 (495) 739-60-09
ventslovsky@post.rusarm.ru