Arms Trade Database for January-April 2002

Supplier	Recipient	Date	Description of Event	Value	Notes
Information for previous period
USA	Kyrgyzstan	19.12.01	US decided to help Kyrgyzstan obtain spare parts and  repair its outdated air fleet.[1]	$3.5 mln
Russia		21.12.01	The first project 20380 corvette for the Russian Navy was lain down at Severnaya Verf.[2]		The vessel is to be commissioned by 2004. The planned series is for up to 10 corvettes.[3]
Russia		27.12.01	The board of the Russian Agency for Conventional Ar­maments defined the core companies of future integrated defense industry holdings.[4]		Izhmash will be the core company of the corporation for small arms and ammunition, the Tula-based Instru­ment Building Design Bureau – the corpora­tion for high precision weapons, Central De­sign Bureau of Machine Building in St. Peters­burg – the corporation for tanks and armored vehicles.[5] The holdings are formed under a pro­gram of restructuring the Russian military-in­dustrial complex.
Russia, IAPO		28.12.01	The maiden flight of the first Su-30MKI multi-role fighter made for the Indian Air Force.[6]		The contract for devel­oping and delivering the fighters to India was concluded on 30.11.1996.
Russia		2001	In the first 11 months of 2001 total production in the Russian defense industry grew 5.2% against the same period of 2000.[7]		The growth was achieved mainly thanks to a 12% rise in civilian product output.
Russia		2001	OJSC Izhmash overall produc­tion in 2001 stood at 6.6 bln rubles ($220 mln).[8]		In 2000 it amounted to 4.6 billion rubles (about $160 mln).[9]
Russia		2001	Russia’s foreign currency re­turns from arms exports amounted to $4.5 billion  con­stituting 11.5% of planned budget revenues.[10]	$4.5 bln
Russia		2001	According to preliminary re­ports, net profits of JSC Degtyaryov Plant grew 120% against 2000 to 485 mln rubles (about $16 mln).[11]		The Degtyaryov Plant is Russia’s biggest manufacturer of rocket systems and small arms.
Russia		2001	The Russian army adopted 9 new weapons developed and manufactured by companies supervised by the Russian Agency for Conventional Ar­maments.[12]		They were an infantry flame-thrower (Instru­ment Building Design Bureau, Tula), four models of 1PN93 sights (Tochpribor design bu­reau, Novosibirsk), a special round (Precision Machine-Building Cen­tral SRI, Klimovsk), assault rifles ??-103 and ??-104 of 7,62 mm caliber and ??-105 of 5,45 mm caliber (Izhmash, Izhevsk)
Russia		2001	The administration of Vladimir region reported a 24.7% rise in local defense industry produc­tion to 7,188 mln rubles (about $240 mln).[13]		Precision Machine-Building Central SRI boosted production 13.7%, Elekropribor ra­dio equipment plant - 17%, JSC Kovrov Me­chanical Plant - 52%, the Degtyaryov Plant - 11,2%, the Kovrov Elec­tromechanical Plant - 3.5%.[14]
Russia		2001	The personnel of the Russian Armed Forces was reduced by 91,000 servicemen and 14,500 civilians. On January 1, 2002 the total personnel amounted to 1,274,000.[15]		In 1999-2000 70% of budget spending on the Armed Forces was as­signed to maintenance and 30% to develop­ment. In 2001 56% was spent on maintenance and 44% on develop­ment.[16]
Ukraine		2001	The volume of Ukrainian arms exports grew 10% against 2000 to $500 mln.[17]
Russia		2001	Total exports of companies of the Russian Agency for Con­ventional Armaments rose 3.9% against 2000.[18]		42 companies exported military goods to 20 countries. Commodity output at research cen­ters and design bureaus went up 35.8%. Invest­ments in fixed capital increased 6.7%. Almost 3 bln rubles ($100 mln) were spent on technical modernization of the industry.[19]
Russia		2001	Baltiysky Zavod shipyard sales shrank 21% against 2000 to 5.2 bln rubles (about $173 mln), engineering production output  grew 26.5% to 283.6 mln ru­bles (about $9.5 mln).[20]
Ukraine		2001	Ukraine reduced its tank fleet by 33 units to 3,895, artillery systems by 21 units to 3,705, attack helicopters by 35 to 205, warplanes by 19 to 855. The number of armored vehi­cles grew by 55 units to 4,725.[21]
Russia		2001	The share of defense contracts at Chelyabinsk region defense plants rose almost to 40%.[22]
January
Russia		2002	The government order for Ataka (AT-9) anti-tank guided missiles doubled for 2002.[23]
Russia, Rosoboron­export	China	03.01.02	Rosoboronexport and China signed a contract for the con­struction and delivery to China of two project 956EM (Sovremenny class) destroyers.[24]	About $1.4 bln[25]	Initially the contract was supposed to go to Baltiysky Zavod ship­yard, but in March 2002 it was given to Severnaya Verf which carried out the previous contract for two de­stroyers for the Chinese Navy concluded in 1997.
Russia		17.01.02	At a closed session the Russian Cabinet approved the govern­ment defense contract for 2002.[26]	79 bln rubles (about $2.6 bln)[27]	The defense contract soared 40% compared to the previous year.[28] The bulk of the money will be spent on up­grading existing mili­tary equipment and R&D. Only individual types of arms will be purchased.
Russia		23.01.02	Nizhny Novgorod regional ad­ministration signed a coopera­tion agreement with five de­fense agencies: the Russian Agency of Control Systems, Rosaviakosmos, the Agency for Conventional Ar­maments, the  Agency for Shipbuilding and the Agency for Ammunition.[29]		The agreement implies support for Krasnoye Sormovo shipyard, Gidromash aircraft chassis-maker, Sverdlov plant, Aircraft-Building Plant Sokol, several re­search centers and de­sign bureaus.
Russia		25.01.02	Rosoboronexport and Bryansk region administration signed a cooperation agreement.[30]
Russia	Brazil	January 2002	Rosoboronexport and the Bra­zilian Avibras Industria Aeroespacial company signed several cooperation agree­ments.[31]		Avibras makes aircraft-borne missile systems.
Russia	Turkey	January 2002	Russia and Turkey signed a bi­lateral military cooperation agreement.[32]
Russia, USA	Uzbekistan	January 2002	Uzbekistan received 8 Russian-made full-wheel driven vehicles UAZ-3153.[33]	$70,000	The vehicles were sup­plied under a $3 mln US program of helping Uzbekistan tighten bor­der controls, resist ter­rorism and illegal arms trade.
Russia		January 2002	President Putin signed the Government Program of Arma­ments to the Year 2010.[34]
Russia		January 2002	The government of Moscow region offered tax breaks to lo­cal defense plants involved in the implementation of the gov­ernment defense contract.[35]		The property tax of the plants was cut by half allowing them to an addi­tional spend 100 mln rubles (abot $3.3 mln) on production develop­ment and tests.
Russia		January 2002	The Military Insurance Com­pany quadrupled its charter capital to 700 mln rubles (about $23 mln).[36]		The biggest sharehold­ers of the company, formed in 1992, are the Military Insurance Company Group, Planta state enteprirse, Beis Holding, Military Medical Insurance Company, Vek-B, VNI­INS research institute, and VSK Trading House.
Russia	Vietnam	January 2002	Kronshtadt JSC (Moscow) de­livered the first Laguna-1241RE integrated marine sur­face ship simulator to the Vietnamese Navy.[37]
Russia		January 2002	The Defense Ministry paid 85% of its debts for deliveries made by 65 companies of the Russian Agency for Conven­tional Armaments in 1996-1999.[38]	894.5 mln rubles (about $30 mln).[39]	In 2001, 98 companies of the agency were in­volved in the fulfill­ment of defense contract.
February
Russia	India	05-08.02.02	Delhi hosted a session of the Russian-Indian intergovern­mental commission for mili­tary-technical cooperation.[40]
Russia	Afghanistan	11.02.02	Afghan Defense Minister Mohammad Fahim visited Moscow.		Russia agreed to help Afghanistan with logis­tical and technical sup­plies of its armed forces.[41]
Russia		11.02.02	Rosoboronexport and Tatneft oil company signed a general cooperation agreement.[42]		The agreement simpli­fies mechanisms of set­tlements with arms buyers who have poten­tial oil reserves.
Ukraine		13.02.02	The Ukrainian government ap­proved the Concept of Restruc­turing the National Defense In­dustry.[43]		The Concept implies the formation of 7-9 power­ful vertically-integrated companies with a com­plete development and production cycle. An aerospace holding is to be formed on the basis of Yuzhmash, an aircraft holding on the basis of the Antonov ANTK aircraft complex.
Russia		13.02.02	Progress aircraft company (Ar­senyev, Primorye) received an export order for Moskit (SS-N-22) ship-to-ship missiles for China.[44]		No details of the con­tract were disclosed.
Russia		14.02.02	The State Duma tasked the Audit Chamber to conduct a comprehensive probe of the use by the Defense Ministry of funds assigned from the federal budget for financing the Rus­sian defense industry in 1997-2001.[45]
Russia		18.02.02	Ilya Klebanov was dismissed from the post of deputy prime minister by presidential de­cree.[46]		Prime Minister Mikhail Kasyanov was placed in charge of MTC with foreign states. Klebanov retained the post of minister of industry, science and technology.
Russia	Vietnam	20.02.02	A contract was signed with Vietnam on the delivery of 50 Igla man portable surface-to-air missiles (SA-18) and their production technology.[47]	$ 64 mln [48]	LOMO, the manufac­turer of Igla warheads, will get $16 mln under the contract.[49]
Russia		23.02.02	Russia pledged to deliver mili­tary goods worth $24 mln to the Bulgarian army under a debts-for-arms deal.[50]	$24 mln	The new pattern of debt payments was defined by the Russian-Bulgar­ian intergovernmental commission for trade, economic, scientific and technical cooperation in Sofia. Russia managed to negotiate the reduc­tion of total debts from $100 mln to $88 mln. It pledged to complete payments by 2004.
Belarus		24.02.02	Belarus approved a new na­tional security concept, a concept of developing its armed forces to 2010 and a new military doctrine.[51]
Russia		February 2002	Rosoboronexport and RSC En­ergia signed a general coopera­tion agreement.[52]		Cooperation will be ex­ercised torugh of joint foreign trade and technical assistance to foreign states.
Russia		February 2002	The Finance Ministry exceeded planned spending on the government defense contract by 10%. Ef­forts to develop and purchase weaponry were funded 106.6% of budgeted funds.[53]
Russia	India	February 2002	Russia began the transfer of technical documents for the li­censed production of T-90C tanks to India.[54]		Under the 2001 con­tract for 310 tanks, In­dia will get 124 assem­bled tanks, 186 in parts and components for assembly in Avadi.
March
Russia	India	08.02-15.03.02	Sea trials of the first Talwar (Krivak class) frigate built at Baltiysky Zavod shipyard for the Indian Navy.[55]		The frigate was built under the 1997 contract for 3 frigates for India. The first should be transferred to the In­dian Navy in May 2002.[56]
Russia		12.03.02	Rosoboronexport and Rosbank signed a cooperation agree­ment.[57]
Russia		14.03.02	Rosoboronexport and the Rus­sian Regional Development Bank (RRDB) signed a coop­eration agreement.[58]		The agreement gives the bank additional opportunities to credit defense companies.
Russia		15.03.02	The Russian Agency for Con­ventional Armaments and the Federal Agency for the Legal Protection of the Military, Special and Dual Purpose In­tellectual Property Rights signed a cooperation agree­ment.[59]		The agreement is aimed at more effective legal protection of the inter­ests of the state in the use and transfer of Rus­sian intellectual prop­erty in the defense in­dustry.
Russia		16.03.02	The Yak-130 combat trainer developed by the Yakovlev Special Design Bureau won a Russian Air Force tender for combat trainers.[60]		The contest also in­volved the MiG-AT trainer of RAC “MiG”.
Russia		20.03.02	The Federal Securities’ Com­mission registered the first IAPO bond loan.[61]		The nominal sum of the loan will be 600 mln rubles ($20 mln).[62]
Russia	Bulgaria	26.03.02	RAC “MiG” signed a general agreement to revitalize 20 MiG-29 (Fulcrum) fighters of the Bulgarian Air Force.[63]		RAC “MiG” won a tender for repairing and upgrading 20 Bulgarian MiG-29 fighters in Feb­ruary 2002.[64] The Bul­garian Air Force has 21 MiG-29 fighters.
Russia		27.03.02	The Su-35 fighter failed to reach the final stage of the South Korean tender for 40 fight­ers.[65]	$4 bln	The final choice will be made in April between The F-15K (Boeing) and Rafale (Dassault Aviation).
Russia		March 2002	President Vladimir Putin signed a decree on the forma­tion of new integrated holding:  the Tactical Missile Corpora­tion.[66]		The corporation will be formed around the State Scientific and Produc­tion Center Zvezda-Strela, the leading Rus­sian designer and manu­facturer of air-to-surface tactical missiles. Six plants and design bu­reaus out of 20 con­nected with Zvezda-Strela will join the cor­poration.[67]
Russia	Malaysia	March 2002	Malaysia decided to acquire 10 Mi-171 (Hip H) helicopters.[68]	About $50 mln[69]
Russia	China	March 2002	Russian Prime Minister Mik­hail Kasyanov appointed AMIC Sukhoi the prime con­tractor for the delivery to China of 40 Su-30MKK fight­ers for $1.5 bln.[70]	$1.5 bln	The contract was signed in 2001 and initially KnAAPO was named the prime contractor.
Russia		March 2002	IST Group controlling Baltiy­sky Zavod reportedly acquired a minority stake (18.8%) in the Severnaya Verf shipyard.[71]	No more than $5 mln[72]	53% of Severnaya Verf belongs to New Pro­grams and Concepts holding, 21% to the Russian Federal Prop­erty Fund, and the rest is distributed among 1,324 shareholders.[73]
Russia		March 2002	Omsk Transmash Production Association received a govern­ment contract for upgrading T-62 and T-72 tanks.[74]	Several hundred million rubles[75]
Russia	India	March 2002	Indian Defense Ministry in­quired at Rosoboronexport about the chances of Russian involvement in upgrading the T-72M1 tanks of the Indian Armed Forces.[76]		India plans to upgrade 600-800 of its 1,500 T-72 tanks.[77]
Russia		March 2002	It is reported that since the beginning of the year the Bank of Moscow assigned over $50 mln for pre-export funding of defense industry facilities.[78]	$50 mln	Credit lines were open to the Instrument Building Design Bureau (Tula) - $8.1 mln, FSUE IEMZ Kupol (Izhevsk) – 900 mln rubles ($30 mln), Avitek (Kirov) – 150 mln rubles ($5 mln), JSC Kazan Helicopters - $10 mln.[79]
April
Russia, Rosoboron­export	Uruguay	Begin­ning of April 2002	A contract was signed for delivery of 400 Ural full-wheel drive heavy-duty trucks, jeeps and other vehicles for the army of Uruguay.[80]	$10 mln[81]	Deliveries should be completed in October 2002. Uruguay intends the Russian vehicles mainly for use by its contingent of the UN peacekeeping force.
Russia, Rosoboron­export	Malaysia	08-11.04.02	A contract was signed for the delivery of a batch of Igla-9K38 man portable surface-to-air missiles.[82]	$48 mln[83]	Deliveries will be made over 3 years. Igla was designed by the Kolomna Machine-Building Design Bureau.
Ukraine	Pakistan	09.04.02	It is reported that Ukraine signed a contract with Pakistan for the delivery of engines for 300 Al Khalid tanks over a period of 3 years.[84]	$150 mln[85]	The engines will be made at the Malyshev Plant State Enterprise (Kharkiv).
Russia	India	12.04.02	FSUE Zvyozdochka Engineering Plant completed the upgrading of an Indian Kilo class submarine Sindhuratna.[86]		It is the fourth INS upgraded in Russia under contract with Rosoboronexport. It will be transferred to the Indian Navy in August 2002.
Russia		13.04.02	Russian Prime Minister Mikhail Kasyanov signed instructions dismissing Vladimir Simonov from the post of general director of the Russian Agency of Control Systems.[87]
Russia	Czech Republic	April 2002	The Czech government approved a plan under which Russia will pay part of its debts to the Czech Republic with arms deliveries[88]	$300-400 mln[89]	Under the plan, in 2003-2006 the Czech army should receive 2-3 An-70 transport planes, 7 Mi-24 (Hind) assault helicopters and spares for Russian-made weaponry.

* This article is an extract from the report "Events in The Kodori Gorge. October, 2001," written by the Caucasus Forum following monitoring in Abkhazia and Georgia. The initiators and donors of this project are the CIS NGO Working Group on Conflict Management and the William R. Nelson Institute.

[1] Jane’s Defense Weekly, 09.01.2002, vol. 37#1.

[2] CAST information.

[3] Ibid.

[4] Izhmash press release. 25.01.2002.

[5] Ibid.

[6] “Aviatsiya, kosmos i oruzhie Rossii,” 28.12.2001.

[7] “Aviatsiya, kosmos i oruzhie Rossii,” 27.12.2001.

[8] Izhmash press service, 09.01.2002.

[9] Ibid.

[10] A. Lebedev, Izvestia, 21.01.2002, pp.1, 4.

[11] INFO-TASS database, Vega base, 23.01.2002.

[12] “Aviatsiya, kosmos i oruzhie Rossii,” 23.01.2002.

[13] INFO-TASS database, Vega base, 29.02.2002.

[14] Ibid.

[15] INFO-TASS database, Vega base, 31.01.2002.

[16] Ibid.

[17] Jane’s Defense Weekly, 20.02.2002, vol. 37 #8.

[18] “Aviatsiya, kosmos i oruzhie Rossii,” 06.03.2002; Interfax-AVN, March 2002.

[19] Ibid.

[20] Information by Baltiysky Zavod press service, 04.03.2002.

[21] INFO-TASS database, Vega base, 05.03.2002.

[22] “Aviatsiya, kosmos i oruzhie Rossii,” 12.03.2002.

[23] “Aviatsiya, kosmos i oruzhie Rossii,” 04.02.2002.

[24] “Aviatsiya, kosmos i oruzhie Rossii,” 03.01.2002; Anna Nevskaya, Ilya Bulavinov, Kommersant. 09.01.2002.

[25] Ibid.

[26] S. Sokut, Nezavisimaya Gazeta, 18.01.2002, p. 3; I. Bulavinov, Kommersant, 18.01.2002, p.2.

[27] Ibid.

[28] Ibid.

[29] INFO-TASS database, Vega base, 23.01.2002.

[30] INFO-TASS database, Vega base, 25.01.2002.

[31] “Aviatsiya, kosmos i oruzhie Rossii,” 14.01.2002.

[32] INFO-TASS database, Vega base, 15.01.2002.

[33] Jane’s Defense Weekly, 16.01.2002, vol. 37, #3.

[34] Yu. Golotyuk, Vremya Novostei, 24.01.2002, p. 2.

[35] INFO-TASS database, Vega base, 17.01.2002.

[36] INFO-TASS database, Vega base, 17.01.2002.

[37] “Aviatsiya, kosmos i oruzhie Rossii,” 30.01.2002.

[38] “Aviatsiya, kosmos i oruzhie Rossii,” 25.01.2002.

[39] Ibid.

[40] INFO-TASS database, 06.02.2002.

[41] Yu. Golotyuk, Vremya Novostei, 13.02.2002, pp. 1, 3.

[42] Yu. Golotyuk, Vremya Novostei, 12.02.2002, p.4.

[43] INFO-TASS database, 13.02.2002.

[44] Interfax-AVN, “VPK Rossii I export oruzhiya”, January, 2002, #1.

[45] INFO-TASS database, Vega base, 15.02.2002.

[46] I.Bulavinov, K. Smirnov, Kommersant, 19.02.2002, pp. 1-2.

[47] Interfax-AVN, “VPK Rossii i eksport oruzhiya,” January 2002, No. 1.

[48] Ibid.

[49] Ibid.

[50] INFO-TASS database, Vega base, 23.02.2002.

[51] INFO-TASS database, Vega base, 25.02.2002.

[52] INFO-TASS database, Vega base. 12.02.2002.

[53] INFO-TASS database, Vega base. 19.02.2002.

[54] “Aviatsiya, kosmos i oruzhie Rossii,” 21.02.2002.

[55] Interfax-AVN, 26.03.2002.

[56] Ibid.

[57] INFO-TASS database, Vega base, 12.03.2002.

[58] Interfax-FIA, 14.03.2002.

[59] INFO-TASS database, Vega base, 15.03.2002.

[60] Sergei Sokut, “Pyatoye pokoleniye Klebanova,” Nezavisimaya Gazeta, 18.03.2002, p.1.

[61] Interfax-AVN, 20.03.2002.

[62] Ibid.

[63] Interfax-AVN, 26.03.2002.

[64] INFO-TASS database, Vega base, 19.02.2002.

[65] VPK Rossii i eksport oruzhiya, No.3, Interfax-AVN, March 2002.

[66] “Aviatsiya, kosmos i oruzhie Rossii,” 11.03.2002.

[67] Ibid.

[68] INFO-TASS database, Vega base, 18.03.2002.

[69] Ibid.

[70] Ilya Bulavinov, Kommersant, 19.03.2002, p.1.

[71] Anatoly Tyomkin, “Ist zarabatyvayet na esmintsakh,” Vedomosti, 20.03.2002, p. B1.

[72] Expert estimate, ibid.

[73] Ibid.

[74] Boris Kurkin, Vremya Novostei, 22.03.2002, p. 7.

[75] Ibid.

[76] “Aviatsiya, kosmos i oruzhie Rossii,” 22.03.2002.

[77] Ibid; Military Balance 2001-2002, IISS.

[78] VPK Rossii I eksport oruzhiya, No.3, Interfax-AVN, March 2002.

^[79] Ibid.

[80] ITAR-TASS, 02.04.2002.

[81] Ibid.

[82] Interfax-AVN, 10.04.2002.

[83] Ibid.

[84] Interfax-Asia, 09.04.2002.

[85] Ibid.

[86] ABNews, 12.04.2002.

[87] Interfax, 13.04.2002.

[88] Interfax-Europe, 11.04.2002.

[89] Ibid.