Arms Trade Database for August-September 2002

Supplier	Recipient	Date	Description of Event	Value	Notes
Information for previous period
Russia		2001	According to Rosoboronexport Deputy General Director Vik­tor Komardin, his company signed over 1,300 contracts in 2001[1].
Russia		First half of 2002	In the first half of 2002, Rus­sian Agency for Conventional Armaments output grew by 123,7%; pre-tax profits were 3,623 mln rubles ($115 mln); total exports rose 340% to $450.6 mln ($15 mln), deliv­eries of military goods 690%[2].		The agency's 28 compa­nies delivered military goods to 22 countries[3].
Russia	Kenya	Spring 2002	Kenya imported 200 Kalash­nikov assault rifles[4].
Russia, Ro­soboronex­port	China	30.07.02	The drafting of a new contract for the delivery of 40 Su-30MK multirole fighters with the supersonic X-31A missile (AS-17 Krypton) to China was announced[5].	$1.8 bln[6]
Russia		30.07.02	General Director of the Rus­sian Agency for Ammunition Zinovy Pak declared that the SUE Kuibyshev Chemical Plant and the Novosibirsk Measuring Instrument Test Plant would become the first Russian state ammunition plants[7].		The agency’s ten facili­ties are located in the Novosibirsk region. The Novosibirsk Institute of Applied Physics and the Novosibirsk Low Volt­age Equipment Plant are also subordinate to it. They are responsible for 28% of the region’s defense industry out­put[8].
Russia		30.07.02	Air Force Commander-in-Chief Col. Gen. Vladimir Mikhailov declared that the Russian Air Force plans to upgrade 20-25% of its frontline bombers to 4+ generation by 2005[9].		After 2005, the Armed Forces will begin re­ceiving the advanced Su-27IB aircraft, the testing of which should be completed by 2004-2005. In military trans­port aviation the up­grading of An-124 cargo aircraft to An-124-100 level will continue. Il-76 will be equipped with new PS-90A en­gines[10].
Russia	Finland	July 2002	Tranzas Company delivered the latest naval simulator to Meriturva center in Finland[11].		The simulator was de­livered under the 18.04.2001 agreement between Mashinoexport foreign trader and Meriturva naval train­ing center as partial payment of Soviet-era debts to Finland.
August
Russia		02.08.02	At an extraordinary meeting, shareholders of the JSC Degtyaryov Plant decided to increase the charter capital from 174,840, 000 to 1,748,400,000 rubles (about $55 mln)[12].		To increase charter capital they raised the par value of shares from 1 to 10 rubles through a revaluation of the plant’s fixed assets.
Belarus	India	02.08.02	Contracts were signed speci­fying the delivery of spare parts and armaments for heli­copters of the Mi family and Il-76 aircraft and licensed pro­duction of laser sights for T-90 tanks (delivered by Russia) and Indian T-72 main battle tanks[13].		India will also have the right to export goods made under license to third countries.
Russia	Nigeria	05.08.02	Mi-Light Helicopters JSC de­livered three Mi-34S helicop­ters to Nigeria[14].		This is the second deliv­ery of Mi-34S to Nigeria in 2002. The first three helicopters were deliv­ered in January.
Russia	India	05.08.02	Uralvagonzavod completed the delivery of 124 T-90S tanks to India[15].	Total sum of contract - $800 mln.	In the framework of the 2001 contract for the delivery of 124 T-90S tanks and the licensed production of 186 tanks in India. The first 40 tanks were delivered to India in December 2001.
Russia		06.08.02	IAIA decided to increase its charter capital from 632,841,500 to 2,373,155,625 rubles (about $75 mln)[16].		The IAIA charter capi­tal consists of 791,051,875 common shares with the par value of 0.8 rubles. The main shareholders are FTK Company (19,97%), Forpost bank (19,86%), AVPK Suk­hoi (14,7%), CJSC Aerocom  (10,18%). Brunswick UBS War­burg Nominees is a nominal holder of 25.76%.
Ukraine	Pakistan	12.08.02	A contract was signed for the delivery of 285 en­gine/transmission kits for ???-2000 (Al-Khalid) tanks over a period of three years[17].	About $ 100 mln.
Russia		12.08.02	Prime Minister Mikhail Kasyanov approved the Minis­try of Finance (MOF) pro­posal to raise spending on arms procurements and the devel­opment of new arms in 2003 to 110 bln rubles (about $3.5 bln)[18].		Compared to 2002, the government order for new armaments will grow by 31 bln rubles(about $1 bln)  and the share of the arms order in military spending will grow from 28% to 31%. Total military spending is expected to rise to 353 bln rubles (about $11 bln), the share of the defense budget in the GDP from 2.6% to 2.7% and spending on arms pro­curements and R&D from 0.72% to 0.84% of the GDP[19].
Russia		12.08.02	The Russian Defense Ministry gave a technical order for the development of fifth genera­tion aircraft (I-21 program) to AVPK Sukhoi, which was ap­pointed the core developer of such aircraft by a government resolution[20].	The program is estimated at $1.5 bln[21].
Russia	China	19.08.02	A batch of 10 fighters was transferred to China under the second 2001 contract for 40 Su-30MKK multirole fight­ers[22].
Russia	Vietnam	26.08.02	A transfer act for two Svetlyak patrol boats built at Almaz shipyard in St. Petersburg un­der a 2001 contract with Viet­nam was signed[23].	$40 mln[24]	Svetlyak patrol boats have a displacement of 65 tones and a speed of 30 knots. Almaz Gen­eral Director Leonid Grabovets has said that his shipyard will fill the new Vietnamese Navy order for 10-12 Svetlyak patrol boats[25].
Russia		29.08.02	Total operations performed by companies of the Russian Agency for Conventional Ar­maments at Russian govern­ment orders increased by 47.6% in 2002 against 2001 and the volume of R&D was up 31.5%[26].
Russia		29.08.02	The Russian Economics Minis­try forecast that, in 2003, the total output of the defense in­dustry would grow 13.5-16.2% as compared to 2002 esti­mates[27].		The share of military output in the overall output of the Russian defense industry in 2003 is expected to be 57.7-58.1% (in 2000 it was 56%, in 2002 – 58,1%)[28].
Russia	India	30.08.02	The Indian project 877EKM (Kilo class) diesel electric submarine Sindhugosh arrived at Zvezdochka shipyard in Severodvinsk for planned re­pairs and upgrading[29].
Belarus	Egypt	30.08.02	Minotor-Service company from Minsk and the Egyptian De­fense Ministry signed a con­tract for the upgrading of BTR-50PK APCs[30].		.
Russia		31.08.02	The Minister of Industry, Sci­ence and technology Ilya Klebanov chaired the first ses­sion of the commission for im­plementing the federal pro­gram of reforming the defense industry sector for 2002-2006[31].		Its main result was the decision that the com­mission should consider all draft documents of defense agencies on the formation of integrated defense industry struc­tures.
Russia	China	August 2002	The Russian Higher Arbitra­tion Court rejected the KnAAPO’s complaint against the Russian government over the appointment of AVPK Sukhoi as the core contractor for the delivery of 38 Su-30MKK multirole fighters to China[32].	The contract price is $1.5 bln.	Initially KnAAPO was appointed the core con­tractor.
Russia		August 2002	It was reported that the MDM group had offered Rosoboron­export to purchase a 25% stake in the Volgograd Tractor Plant[33].		The Volgograd Tractor Plant makes tractors as well as combat landing vehicles and self-pro­pelled artillery guns.
September
Russia	India	June-Septem­ber 2002	Transfer of 10 Su-30MKI mul­tirole fighters to India[34].		This was the first deliv­ery of Su-30MKI under the 1996 contract for 40 multirole fighters (eight Su-30K and 32 Su-30MKI) .
Russia		02.09.02	It was reported that the Rus­sian military leadership de­cided to subordinate the avia­tion of the Ground Forces to the Air Force by November 1, 2002[35].
Ukraine	United Arab Emirates	05.09.02	Malyshev Plant (Kharkiv) signed several contracts for the delivery of BTR-3U armored combat vehicles to the Untied Arab Emirates[36].		A BTR-3 weighs about 16 tons, has a 300 hp engine and develops a speed of 85 KpH. It is armed with an auto­matic gun and an auto­matic grenade-launcher both with a 30 mm caliber, a coupled ma­chinegun and 4 anti-tank rockets.
Russia	Afghanistan	06.09.02	During the visit of the Russian defense minister to Kabul, a fundamental understanding was reached that Russia will transfer military cargo planes, automobiles and means of communication to Afghanistan free of charge and also train officers for the Afghan army[37].		Russia will deliver means of communica­tion to Afghanistan be­fore the end of 2002[38].
Russia		10.09.02	The Moscow Narodny Bank and the Russian Federation Committee for Military-Tech­nical Cooperation with Foreign States (CMTC) signed an agreement on interaction[39].		Under the agreement the bank will conduct financial evaluations and expert examinations of projects for the de­velopment, manufac­ture, upgrading and ex­porting of military hardware; participate in crediting facilities that fill export contracts; obtain funds, including its own, to ensure in­vestment in MTC. The bank credited the Rus­sian defense industry sector with a total of $140 mln in 2001-2002[40].
USA	Russia	11.09.02	The USA imposed sanctions against the Russian Instrument Building Design Bureau, Ba­zalt State Research and Pro­duction Enterprise and Rost­vertol PLC helicopter plant for their cooperation with coun­tries, which the US believes sponsor terrorism[41].
Russia	India	12.09.02	The diesel electric submarine Sindhuratna was transferred to the Indian Navy after repairs and upgrades at the Zvezdo­chka shipyard in Severod­vinsk[42].	The contract price exceeds $50 mln[43].
Russia		17.09.02	Chief of Armaments of the Russian Armed Forces and Deputy Defense Minister Col. Gen. Alexei Moskovsky an­nounced that Russian defense industry facilities operate at 20-25% of their capacities ful­filling the government defense order[44].		Some 30-35% of capaci­ties are used for fulfill­ing export contracts[45].
Russia	Poland	26.09.02	RAC "MiG" and the Polish aircraft repair facility WZL-2 in Bydgoszcz signed a contract for the repairs and mainte­nance of MiG-29 fighters of the Polish Air Force[46].	$50 mln
Russia	India	27.09.02	The Indian Air Force adopted the first 10 Su-30MKI multi­role fighters delivered from Russia under the 1996 con­tract[47].
Russia	Greece	30.09.02	The Greek Defense Ministry and Rosoboronexport signed a contract for the construction and delivery to the Greek Navy of the third landing hovercraft Zubr (project 12322, Pomornik class)[48].	$63.9 mln	The contract price in­cludes spares, arma­ments and training of technical personnel. The vessel will be built at the Almaz shipyard in St. Petersburg and de­livered in the middle of 2004. Russia delivered the first two Zubrs to Greece in 2000-2001 under a $102 mln con­tract.
Georgia	Turkmeni­stan	Septem­ber 2002	Between 1999 and September 2002, the Tbilisi Aircraft Plant repaired 30 Su-25 ground at­tack aircraft for Turkmeni­stan[49].	$24 mln.
Russia		Septem­ber 2002	JSFC Sistema purchased of a blocking stake in OJSC Ka­mov[50].		JSFC Sistema manages over 100 enterprises in different branches of the economy. As a stra­tegic partner of OJSC Kamov since 2001 it has accumulated a blocking stake in it (according to some estimates a con­trolling stake)[51].
Russia	China	Septem­ber 2002	The Kumertau Aircraft Pro­duction Enterprises completed the contract delivery of Ka-27 deck helicopters to China[52].		Ka-27 helicopters will be based on Chinese de­stroyers of Sovremenny class [53].

[1] Aviatsiya, kosmos i oruzhie Rossii, 21.08.2002.

[2] Aviatsiya, kosmos, vooruzheniya, 29.08.2002.

[3] Ibid.

[4] Aviatsiya, kosmos, vooruzheniya, 10.09.2002.

[5] Alexei Nikolsky, "Rossia prodolzhayet vooruzhat KNR", Vedomosti, 30.07.2002.

[6] Ibid.

[7] Yuri Prokopyev, "Boyepripasy stanut kazyonnymi", Rossiiskaya biznes gazeta, 30.07.2002.

[8] Ibid.

[9] "Chetvert samolyotov frontovoi aviatsii budet modernizirovana", Kommersant, 30.07.2002.

[10] Ibid.

[11] Aviatsiya, kosmos i oruzhie Rossii , 05.08.2002.

[12] Aviatsiya, kosmos i oruzhie Rossii, 02.08.2002.

[13] Aerospace Daily, 08.08.2002, Defense News, 12-18.08.2002, v.17, ?32.

[14] Aviatsiya, kosmos i oruzhie Rossii, 05.08.2002

[15] API (Yekaterinburg). Novosti, 06.08.2002.

[16] Interfax-AVN, 06.08.2002.

[17] INFO-TASS database, Vega base, 12.08.2002.

[18] Alexei Nikolsky, "Generalsky byudzhet", Vedomosti, 13.08.2002.

[19] Ibid.

[20] Ilya Bulavinov, "Istrebitel v obmen na investitsii", Kommersant, 12.08.2002.

[21] Ibid.

[22] "KnAAPO otpravilo v Kitai 10 istrebitelei", Nezavisimoe voennoe obozrenie, #29, 23-29.08.2002.

[23] Aviatsiya, kosmos, vooruzheniya,26.08.2002.

[24] Yuri Golotyuk, "Vyetnamtsam ponravilis rossiiskiye storozheviki", Vremya novostei, 17.01.2002.

[25] Aviatsiya, kosmos, vooruzheniya, 26.08.2002.

[26] Interfax-AVN, 29.08.2002.

[27] "V OPK ozhidayetsa rost obyomov proizvodstva", Nezavisimoe voennoe obozrenie, #29, 23-29.08.2002.

[28] Ibid.

[29] Aviatsiya, kosmos, vooruzheniya, 30.08.2002.

[30] Aviatsiya, kosmos, vooruzheniya, 30.08.2002.

[31] "Ilya Klebanov vernul sebe kontrol nad oboronkoi", Kommersant, 01.08.2002.

[32] Faddei Setkin, Ilya Bulavinov, "Sudba kitaiskikh istrebitelei reshitsya v rossiiskom sude", Kommersant, 08.08.2002.

[33] Mikhail Kozyrev, "Torgovtsy oruzhiyem skupayut aktsii", Vedomosti, 22.08.2002.

[34] Interfax-AVN, 16.09.2002.

[35] Interfax-AVN, 02.09.2002.

[36] Interfax-Ukraine, 05.09.2002.

[37] Interfax-AVN, 06.09.2002.

[38] Statement of Russian Defense Minister Sergei Ivanov, ITAR-TASS, 09.09.2002.

[39] RIA RosBusinessConsulting, 10.09.2002.

[40] Ibid.

[41] Nezavisimoe voennoe obozrenie, 20-26.09.2002; Alexei Nikolsky, "Bessmyslennye sanktsii", Vedomosti, 16.09.2002.

[42] Aviatsiya, kosmos, vooruzheniya,12.09.2002.

[43] Ibid.

[44] Interfax-AVN, 17.09.2002.

[45] Ibid.

[46] Aviatsiya, kosmos, vooruzheniya, 26.09.2002.

[47] Interfax-AVN, 27.09.2002.

[48] Aviatsiya, kosmos, vooruzheniya, 30.09.2002.

[49] Interfax-AVN,  02.09.2002.

[50] Andrei Krasavin, "Holding Sistema", Gazeta,17.09.2002.

[51] Ibid.

[52] ITAR-TASS, 12.09.2002.