Transcript The world’s no. 2 arms exporter

One of the leaders of weapons and
military equipment world market.
The arms industry
• Russia's military industry employs 2.5 – 3 million
people and accounts for 20% of all manufacturing
jobs
• While arms sales are a clear economic indicator,
they also demonstrate the extent of Russia's
influence around the world.
No 2 in the world (for now..)
Rosoboronexport is a legal successor of the state
arms exporters existed in the ex-USSR and
present-day Russia
values expressed in millions of US dollars at 1990s prices
Rank
Supplier
2010
2011
2012
1
USA
8641
9984
8760
2
Russia
6039
7874
8003
8
Israel
503
531
533
Brief history
• There were two state intermediary companies in the
country, the Rosvooruzhenie and Promexport.
• On November 4, 2000 , the two major Russian exporters
of defence-related products "Rosvooruzhenie" and
"Promexport" merged into the "Rosoboronexport".
Brief history cont.
• On January 19, 2007, Russian President Vladimir Putin
signed a decree making Rosoboronexport responsible
for all arms exports
• Accounts for more than 90% of Russia's annual arms
sales
Core areas of activities
• Export / import of all types of conventional weapons,
military equipment and services.
• Organization of licensed production of armaments and
military equipment abroad, joint R&D efforts with
foreign partners.
• Maintenance, repair and modernization of earlier
supplied weaponry and military equipment.
Core areas of activities cont.
• Training foreign specialists in operation and
maintenance.
• Technical assistance in the construction of military
infrastructure facilities: defense plants, airfields, depots,
ranges, training centers.
Globalization
• On 2008 it was reported that Rosoboronexport
had agreed to go ahead with the sale of advanced
S-300 Russian made anti-aircraft systems to Iran
• In 2012, Rosoboronexport was widely reported to
be Syria’s main weapons supplier
• In July of 2013, Rosoboronexport recorded $34
billion in orders for 66 countries
Globalization cont.
• Has cooperated with more than 70 countries during its
50-year history
• Major clients include India, China, Algeria, Syria,
Vietnam, Venezuela and recently Iraq
• Rosoboronexport cooperates with the companies
belonging to Italian, Spanish, French companies and
others.
Marketing
• ROE has pursued an aggressive marketing course
• Every acquisition by ROE has involved administrative
pressures characteristic of the siloviki (security
services).
• ROE controls companies by establishing a presence
on their board or by acquiring stock.
Marketing cont.
• ROE has steadily expanded its markets, supplemented
weapons sales with service centers worldwide.
• ROE insures its presence in every major armaments
fairs
• ROE offers credit guarantees for its own investment for
the development of designated weapon systems.
In conclusion
• ROE is a state endorsed monopoly in the Russian market.
• ROE uses it’s power and influence to control every other weapon
company in Russia.
• ROE manufactures a large variety of weapons and combat vehicles,
with joint efforts of other nations.
• ROE sells its products to more than 70 countries, regardless of
international embargos or policies.
• ROE also offers technical assistance in construction of military
facilities, and maintenance of supplied military equipment.
• All these aspects made Russia 2nd in the world of arms dealing (by an
ever shrinking margin).