Russian weapons resist the global crisis
Release Date: 2009-07-01
Source: KommersantRussian exports in 2008 were based on sales of military aviation equipment. Nevertheless, the largest Russian military supplier over 2008 is PVO Almaz-Antey, not related to aviation. No decrease in military supplies are expected, in spite of the crisis.
Centre for Analysis of Strategies and Technologies (CAST) published yesterday the rating of largest Russian military and industrial enterprises (ranked in terms of volume of revenue). According to the rating, the largest Russian player on the market of armaments in 2008 is PVO Almaz-Antey (manufacturer of air defense systems S-300 and S-400) with revenues of RUR 115 bln. It is notable that this amount accounts for almost military sales only - the share of civil contracts does not exceed 6.1% in the company’s revenue while many other enterprises have it over 50%.
The second is Sukhoi Holding with exports of Su-30 fighters to India, Algeria and Venezuela. Fighter aviation in Russia is in general the main component of military exports: according to the Federal Service for Military and Technical Cooperation, in 2008 Russia sold weapons worth over USD 8 bln, with 50.4% in aviation equipment (data provided by CASТ). The new ‘aviation’ participant of the CAST rating is the newly formed holding Russian Helicopters (previously its enterprises were ranked separately). 2008 was a record year for Russian helicopter construction: 122 helicopter sold, mainly modifications of Mi helicopters.
The third is Uralvagonzavod, due to a large civil contract (61%) with Russian Railways; its current military export contracts with India and Algeria, and the state defense contract allowed achieving in 2008 a post-Soviet record in tank production - according to CAST, 175 machines have been produced.
Growing exports of military aviation stimulated growing contracts for the suppliers: some Russian enterprises like Tactic and Rocket Arms, Ufa MPO, NPO Saturn and KB Proborostroyenia entered the top 20 thanks to their contracts with the Navy and upgrade of a few corvettes for Algeria.
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