Booming military exports fueled by aircraft sales

Published: 2/10/2000

According to Ilya Klebanov, Russian Deputy Prime Minister responsible for the defence and aerospace industries, 2000 promises to be a bumper year for Russian arms makers, with sales expected to top $4 billion, exceeding the 1999 figure of $3.5 billion and the country"s highest sales since 1991. One of the primary drivers for the growth in exports has been the sales of Sukhoi and MiG aircraft, particularly to China and India. Russia has become India"s largest equipment supplier, with a number of aerospace contracts. Rosvooruzhenyie, the state export agency, is reported to have a backlog of orders of $10 billion. Customers are coming to Russia according to the agency due to simplicity and cost. Sales in general have, however, been assisted by the devaluation of the ruble and particularly helped in less affluent markets in Africa. The export scene is still not without problems and the crash at last year"s Paris Air Show, of an Su-30, shook Russia"s most successful exporter with over half of the country"s total sales. It does not appear to have had unduly negative effect on exports, as it was followed by large orders from China for the Su-30MKK. India has also seemed undaunted by reports of engine unreliability among its Su-30 fleet. For MiG, the ascendancy of its rival has been marked by its own decline, with significantly fewer sales and little consolation in recent orders from India for the carrier borne MiG-29K and for MiG-29s from Bangladesh.

Article ID: 1407