Cooperation for armament exports

Published: 3/28/2000

It has been reported that Rosvooruzhenie and the Russian Armament Agency (RAV) have signed a general agreement covering the main details of the cooperation for armament exports. The agreement also outlines government support for the export sector in both funding and the development of markets. RAV was set up in May 1999 to coordinate the activities of 150 enterprises, developers and producers of different armaments. This was part of the latest effort by the Russian government to revamp its huge and unwieldy military complex. Agencies were established for each sector: shipbuilding, weapons, radio technology, communications and ammunition. The recent high level of interest displayed by President Putin to the defence industries during his election campaign demonstrates the importance of the industry both as "drivers of the economy" and providers of valuable export revenues. Revenues that are increasingly important as a means of funding both the industry and the military's development requirements. Interestingly however, the importance of the agency to the sales of weapons did not prevent its Director General being excluded from an important defence equipment commission, where previously Rosvooruzhenie, reported to be heavily influenced by the Kremlin 'family', had been present. Suggesting that it may be losing some of its not inconsiderable muscle, despite its portrayal of its self as the re-equipper of the Russian armed forces as a result of revenues earned through exports.

Article ID: 1741