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#5 (67), 2018

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Facts & Figures

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US decided to help Kyrgyzstan obtain spare parts and  repair its outdated air fleet.[1]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.

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