Restrictions ease on export of military products

Published: 2/3/2000

It seems that the state export agency"s stranglehold is lessening, with the news that the Russian government has granted the Tula Instrument Manufacturing Design Bureau the right to export military products for the next five years. According to a report in Prime-TASS, the relevant decree has been signed by acting President Putin and a particular product range for export has been specified. The range comprises some 90 state-of-the-art examples of armament and military hardware created by the design bureau over the past few years. In addition to exporting armaments, Tula may now sell manufacturing licences to foreign countries and try out foreign-made hardware at its own testing grounds. The role of the export agencies in the aerospace sector has always been a bone of contention for many producers, ranging from those who believe that they could do a better job themselves, to those who consider that the additional layer merely reduces the flow of cash down the chain. Some of the major manufacturers, such as RSK MiG, can already negotiate and supply independently of Rosvooruzhenie and a number of others are keen to follow suit. Rosvooruzhenie has been regarded by some as a plum for the incumbent administration, owing to the large amounts of cash that pass through it. With the exception of one recent General Director, whose ability kept him in the job, the Head of the agency has always been perceived as being “close" to the government.

Article ID: 1387