Konstantin Biryulin , Federal Service for Military and Technical Cooperation - ФСВТС России
Release Date: 2010-06-30
Konstantin Biryulin was interviewed by RussianAvia.net on the eve of Forum for Technical and Military Cooperation (June 30 - July 4, Zhukovsky)Could we start with a short overview of the role of FSMTC for our foreign colleagues to understand it?
FSMTC first appeared, formally, in 1953 to regulate the system of military technical cooperation (MTC). Its newest history started in 1993 when it gradually emerged from a complex structure initially governed by the Ministry of Foreign Economic Relations, then – by the Ministry of Trade, afterwards – the Ministry of Industry, until finally the Committee of the Russian Federation for MTC was formed in December 2000. It was renamed as the FSMTC due to the state reform when all the former committees were renamed as ministries, agencies and services.
FSMTC is a federal executive authority granted wide powers in the area of military and technical cooperation (MTC) by the President of Russia. It is governed by the President of Russia. FSMTC reviews all issues related to MTC and takes the corresponding decisions regarding, for instance, the export of military products, military supplies, as well as organizing negotiations and dealing with the inquiries of foreign partners.
Are the inquiries sent to the manufacturers or directly to the FSMTC?
According to the standards of the FSMTC, all applications, even if received by enterprises, are redirected to the FSMTC for registration and consideration. However there are no rigid rules that would regulate the receiving of applications, the enterprises are obliged to direct them to the FSMTC. If necessary, the FSMTC takes part in the negotiations or authorizes the companies to do it with subsequent reporting to the FSMTC concerning the decisions taken at the negotiations.
Touching upon the main activities of the FSMTC, one of the important areas of our work concerns marketing, advertising and exhibitions, namely where to participate. FSMTC tries to ensure that its enterprises are represented as widely as possible. One of the steps that we would like to take is to take over the control of distributing the advertising materials on any product produced by the industry so that the business structures could enjoy more openness and could optimize their relations with the industry and the official authorities. As all the final decisions are taken by the President of Russia, FSMTC does the required formal arrangements, negotiations and understands the interest to this or that question and the need to find mutual benefits which also implies good understanding of the internal processes. Same as for the decisions on military supplies, the FSMTC is in charge of preparing drafts of the decisions to be taken by the Government and the President of Russia.
Finally, the FSMTC issues licenses to authorize military exports.
From a foreign visitor’s perspective, Rosoroboronexport has more awareness on the world stage. What’s your relation with Rosoboronexport and how are the functions divided between the two bodies?
FSMTC is in charge of state decision making and state regulation for MTC. Rosoboronexport is in charge of the commercial issues, signing contracts and legalization of the agreements. FSMTC is less exhibited as we’re not the sellers; we’re representing the state and take decisions on selling. Rosoboronexport’s economic activity is independent except for the areas stipulated in the law where the FSMTC is entitled to restrict or approve certain agreements or negotiations.
FSMTC has 23 subjects inside its structure but there’s an important detail: each subject enjoys authorities granted by the President to take decisions concerning the manufactured products whereas Rosoboronexport is an intermediary authorized to solve any issues and represents Russia as the sole intermediary with the widest authorities for the products manufactured in Russia. Its presence on the market is justified.
Concerning the current situation, what countries are Russia’s main partners for military equipment? We know there are countries that to a big extent use and are “interested” in Soviet or Russian military equipment, but at the same time Russian president called for diversifying the export markets… What direction is more of a priority for FSMTC today?
Russia cooperates with about 90 countries in the area of MTC. Cooperation with the majority of countries, since the Soviet times, has been linked to equipment supplies, and it’s important for us to keep our position. Our President has done a lot to promote it and has taken important decisions to increase the potential of further progress. Now the economic possibilities are different as compared to the pre-market period. Whether India, Yemen, or any even small country wants to work with us, we should approach each country equally and reasonably and cannot prioritize between the countries as each partner should respect his counterpart. Of course, Russia has established strategic cooperation and deeper contacts with India, for instance, which allows us expand the contacts with other countries, but it does not give a ground to treat them differently.
The priority of the upcoming Forum is, obviously, to promote international contacts. Why do you think such a good opportunity to do it has appeared in 2010?
This exhibition is organized by FSMTC jointly with Russian Technologies. As the FSMTC is responsible for exhibiting and advertising in the area of MTC, we have been long planning this event to accomplish it as a new platform. The idea of this forum was voiced at its last edition two years ago but there was lacking political will to take this decision. Now that the President has taken a decision to convert Ramenskoye exhibitory and transport complex in a new platform to show equipment and make business projects to involve our companies in international cooperation, last year we have gathered a large Forum and took a joint decision to pursue this initiative and hold a new Forum in 2010 to showcase innovative technologies in action.
The big idea is that the products should be competitive and Russia should show the opportunities and capabilities of its MTC. To make this, we understand the need for wide international participation and attracting investments in terms of technologies – which has long been a lag for us and we’re aware of the need to progress. FSMTC is responsible for state regulation in a complicated area but further promotion of the state products is impossible without changing the principles of our work. Our task is to make it the first step to form a platform for a dialogue.
We plan to make this platform effective in terms of infrastructure but the first solution concerns financing. The city of Zhukovsky (Moscow region – Editor’s Notes) requires subsidies to modernize its infrastructure and make it more convenient.
What are the main tasks that the Forum faces and your expectations?
Most importantly, we have done what we wanted: we announced the Forum and converted it into a platform for a dialogue where we invite everyone. We would like to see even more participants but the important thing is to get started and create something new and efficient. Our main objective - to offer a new platform and involve all the potential partners of the Russian businesses - is not easy as Russia used to be a very closed country and it’s only now that we’re talking about opening the military and defense complex (OPK) which is a somewhat sensitive issue.
Secondly, this action would attract the attention of the Russian government and the political leaders and would, hopefully, push them to modernize Zhukovsky’s infrastructure and the social issues. Further, we hope to sign serious contacts at the next Forum better and establish a serious dialogue between the industry and the businesses of Russia and the West. For the rest, I would like the participants to come and make sure that the organization of work and the offer is better than even at the major Russian exhibitions and airshows.
You final message to the potential partners of the Russian military industry?
Don’t be afraid to come to Russia and work with us! I know it’s difficult, it’s sometimes hard to predict the outcome and there are difficult decision-making procedures but we’re aware of the internal restrictions that we’re committed to overcome. If we are given good offers, the FSMTC will ensure its support.
| Company: | Federal Service for Military and Technical Cooperation - ФСВТС России |
| Position: | Deputy Director |
| Country: | Russian Federation |