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Moscow Defense Brief


#2 (28), 2012

CONTENTS

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Facts & Figures

Arms Trade Database for October-December 2001


Supplier

Recipient

Date

Description of Event

Financial Parameters

Notes

Information for previous period

Russia

Iran

Summer 2001

Signing of the contract on delivery of 30 Mi-8 (Hip) military transport helicop­ters to Iran.[1]

$150 mln

The helicopters will be manu­factured at Ulan-Ude Aviation Plant.

Russia

 

January- November 2001

Total production volume of Izhmash Group enterprises for the first 10 month of 2001 accounted for 5 289 mln rubles (more than $180 mln) that is 67% higher than in the same period of 2000.[2]

   

October

Russia

Afghanistan

Beginning of Septem­ber 2001

Information about Russia’s plans to start arms deliveries to Afghanistan.

$30-45 mln[3]

These deliveries are supposed to include 40 T-55 tanks, 80 BMP-1 and BMP-2 AIFVs, several dozens BTR-60 APCs[4], up to 40 23-mm self-propelled ZSU-4-23 AD guns, 2 batteries of 100 mm MT-12 anti-tank guns, 6 batteries of 122-mm D-30 howitzers, 4 batteries of 120-mm 2B11 mortars, 2-3 batteries of 82-mm 2B9 auto­matic mor­tars, up to 10 122-mm Grad MLRS, portable Grad-P launchers, up to 100 Malutka (AT-3) and Fagot (AT-4) ATGM, 4-6 Mi-8 (Hip) and 4-6 Mi-24 (Hind) helicopters. The deliveries were carried out from the Rus­sian Defense Min­istry’s sur­plus.[5] The total vol­ume of Rus­sia’s arms deliveries to Af­ghanistan in 2001 is $167 mln.[6]

Russia

 

Beginning of October 2001

Raduga Machine-Building Design Bureau finished the ground tests of Kh-59MK air-to-ground missile.[7]

 

The new Kh-59MK based on anti-ship Kh-59M (AS-18) is equipped with electronic homing head and has the effec­tive range up to 285 km.[8]

Russia

Iran

02.10.01

Defense ministers of Russia and Iran signed an agree­ment on military technical cooperation.[9]

   

Russia

 

11.10.01

Order by the Russian gov­ernment on putting into ef­fect the Program of reform­ing and developing of the national defense industry in 2002-2006.[10]

 

The program envisages, in par­ticular, the creation of 36 de­fense corporations.

Russia

 

17.10.01

Under the presidential bill Ilya Klebanov is appointed a Vice-premier, Minister of Industry, Science and Technology.[11]

 

Earlier the post of the Minister of Science, Industry and Tech­nology was held by Alexander Dondukov.

Russia

 

17.10.01

The Russian Vice-premier and Minster of Finance Alexei Kudrin said that the expenditures on arms pur­chases for Russia’s Armed Forces would grow by 27 bln rubles (about $900 mln) in 2002.[12]

   

Russia

 

18.10.01

Rosoboronexport and the administration of Ryazan re­gion signed a general agree­ment on cooperation.[13]

   

Russia

 

22.10.01

Rosoboronexport and the Russian Agency on Conven­tional Arms signed a general agreement on cooperation.[14]

   

Russia

Yugoslavia

23.10.01

The Russian President signed a bill on lifting the embargo on arms deliveries to Yugoslavia.[15]

 

The restrictions on arms deliv­eries to Yugoslavia were im­posed under the UN Security Council’s resolution 1160 from 31.03.98.

Russia

 

24.10.01

General Director of JSC De­fense Systems Sergei Batekhin said that the com­pany’s revenues for the 9 month of 2001 accounted for 300 mln rubles ($10 mln), net profits – 50 mln rubles ($1.7 mln).[16]

   

Ukraine

Egypt

24.10.01

SDO Yuzhnoye and the Egyptian National Authority for Remote Sensing and Space Sciences signed a con­tract on construction of Egypsat-1 satellite.[17]

 

Ukraine also trains Egyptian specialists for design of the satellites of this class.

Russia

 

25.10.01

The Government of Moscow signed a five-year agreement on cooperation with Rosobo­ronexport, Rosaviakosmos, the Russian agencies on con­ventional arms, control sys­tems, ammunition and ship­building.[18]

 

The agreement envisages coor­dination in promoting the pro­duction by Moscow defense companies into foreign markets.

Russia

Czech Republic

26.10.01

The Czech Defense Minister Yaroslav Tvrdyk agreed with delivery of 6 Russian Mi-35M (Hind E/F) heli­copters to Czech Republic and modernization of Czech Mi-24 (Hind) helicopters in exchange of clearing off the Russian debt.[19]

 

The Russian debt to Czech Republic totals $3.6 bln. The parties signed an agreement on clearing off $2.5 bln of the debt.[20]

Russia

India

30.10.01

Completion of the moderni­zation of the project 877EKM (Kilo class) sub­marine for the Indian Navy.[21]

 

The modernization is carried our by the Admiralty Ship­yards.

Russia

 

30.10.01

The Russian President signed a bill on creation of JSC “Aviatzionnaya khold­ingovaya kompaniya “Suk­hoi” (AKhK Sukhoi, JSC Sukhoi Aircraft Holding Company).[22]

 

The bill stipulates merging of Sukhoi Design Bureau and two serial plants KnAAPO and NAPA that will be privatized into one corporation.

Russia

 

30.10.01

The basic principles of de­velopment of the Russian defense industry until 2010 and further were approved at the joint meeting of the State Council’s presidium and the Security Council.[23]

 

This document envisages re­forming Russia’s defense in­dustry by creating 50 large holdings.

Russia

 

October 2001

The Russian Air Forces and IAIA signed an agreement on modernization of Su-30 and Su-27 aircraft in 2002-2004.[24]

 

Under the agreement 30 Su-27UB and Su-30 fighters will be upgraded into Su-27UBM and Su-30M versions.[25]

Russia

India

October 2001

Signing of a protocol on technical parameters of transfer of Admiral Gorshkov (Kiev class) air­craft carrier to India.[26]

   

Russia

Philippines

October 2001

Negotiations between Beriev Aircraft Company and the representatives of Philip­pines Air Forces on delivery of 6 Be-200 amphibious aircraft.[27]

 

The planes are to be delivered in patrol version.

Russia

 

October 2001

New Programs and Concepts Holding sold out its shares of LOMO PLC and V.A. Dyagterev plant that par­ticipated in production of portable Igla SAM (SA-18).[28]

   

Russia

Bangladesh

October 2001

Rosoboronexport signed an agreement on delivery of 78 BTR-80 APCs for the Bang­ladesh Army units that par­ticipate in the UN peace­keeping missions.[29]

Estimated cost - $16 mln.[30]

The UN will pay for the deliv­ery. The first half of APCs will be transferred in 2001, the second one – in 2002.

Russia

Kyrgyzstan

End of October 2001

Kyrgyzstan asked Russia for communication means, ar­maments, ammunition and new engines for combat heli­copters.[31]

$2.5 mln[32]

In exchange Kyrgyzstan is ready to take no rent from the Russian troops stationed on its territory.

November

Russia

Global market

Beginning of November 2001

Rosoboronexport’s Deputy General Director Sergei Chemezov said that as for 01.11.2001 the company’s currency revenues accounted for $3.6 bln.[33]

$3.6 bln

 

Russia

Hungary

Beginning of Novem­ber 2001

The Hungarian Defense Ministry and RAC “MiG” signed and agreement on service life extension for the engines of the Hungarian Air Forces’ MiG-29 aircraft.[34]

 

The Hungarian Air Forces have 27 MiG-29s (Ful­crum).[35]

Russia

CIS countries

14.11.01

Russia’s Federation Council ratified the agreement on ba­sic principles of military-technical cooperation be­tween the member-states of the Collective Security Treaty from 15.05.1992.[36]

 

The agreement stipulates de­liveries of Russian arms to the members of the Collective Se­curity Treaty at Russian do­mestic prices.

Russia

 

14.11.01

Rosoboronexport and the Russian Agency on Ship­building signed a general agreement on cooperation.[37]

   

Russia

China

16.11.01

Under the government’s or­der KnAAPO is appointed a prime contractor for the de­livery of 40 Su-30MKK fighters to China.[38]

$1.5 bln[39]

Rosoboronexport and the Chi­nese Defense Ministry signed the contract for the delivery of Su-30MKK fighters in summer 2001. AVPK Sukhoi also pre­tended to the role of prime contractor.[40]

Russia

 

17.11.01

Under the Russian govern­ment’s order Grigory Rapota dismissed from the post of the Deputy Minister of In­dustry, Science and Tech­nology. Mikhail Lychagin is appointed at his place.[41]

   

Russia

India

19.11.01

Beginning of the sea trials of the first project 1135.6 Tal­war frigate built at Baltiy­sky Zavod for the Indian Navy.[42]

 

It’s the first ship built under the 1997 contract for construc­tion of 3 frigates at total sum of $1 bln.

Russia

 

22.11.01

Rosoboronexport and the Russian Agency on Ammuni­tion signed a general agree­ment on cooperation.[43]

   

Russia

China

28.11.01

KnAAPO transferred to China the last batch of Su-30MKK fighters as per the 1999 contract on delivery of 40 Su-30MKK at the sum of $1.5 bln.[44]

   

Russia

Greece

November 2001

Antey Concern delivered 2 Tor-M1 (SA-15) SAMs to Greece.[45]

 

As per the contract for deliv­ery of 31 Tor-M1 SAMs at the sum of $800 mln. As for No­vember 2001 Antey transferred 29 complexes, the last 2 will be delivered to Greece before March 2002.[46]

Russia

USA

November 2001

The Russian government blocked the sale of about 100 Kh-31A (AS-17) super­sonic anti-ship missiles to the USA.[47]

$33 mln[48]

Boeing has already got 13 Kh-31A missiles to use as targets for the US Navy.

December

Russia

 

Beginning of December 2001

Yuri Valov is appointed a General Director of “Barri­cady” Production Association.[49]

 

Barricady is one of the largest Russian manufacturers of artil­lery and missiles.

Russia

India

01.12.01

Transfer of the first 40 T-90S tanks to India as per the 2001 contract for delivery and licensed production of 310 tanks.[50]

Total con­tract price - $700 mln

The contract envisages the de­livery of 124 tanks and the production of the other 186 at the Indian facilities.

Russia

 

03.12.01

Commission of Gepard (Akula II class) nuclear submarine.[51]

 

Gepard submarine was built at Sevmash shipyard and is to be given to the Russian Northern Fleet.[52]

Russia

Ethiopia

03-06.12.01

During the visit of the Ethiopian prime-minister Meles Zenaui to Moscow the parties reach an agreement on delivery of 6 Mi-35 (Hind E/F) combat heli­copters, up 100 Igla (SA-18) SAM, 20 BTR-80 APC and small arms and artillery ammunition to Ethiopia.[53]

Total transfer volume - $150 mln[54]

 

Russia

Global market

10.12.01

Rosoboronexport’s General Director Andrei Belyaninov said that the company’s or­der portfolio accounts for $11 bln.[55]

$11 bln

 

Russia

 

14.12.01

Russia’s President issued a bill allowing defense compa­nies independently provide materiel support for the ex­ported arms.[56]

 

According to the bill the Rus­sian Committee on Military-Technical Cooperation (KVTS) will grant this right to those companies where the state has not less than 51% shares.[57]

Russia

 

14.12.01

The Russian State Duma approved the federal budget for FY2002 that allots 284.1 bln rubles (about $9 bln) for the national defense.[58]

   

Russia

 

20.12.01

Rosoboronexport and Antey Concern signed a general agreement on cooperation.[59]

 

Under the agreement the mili­tary output produced by Antey can be exported either by the company itself or through Ro­soboronexport.[60]

Russia

Ukraine

 

21.12.01

Russia’s Rosoboronexport and Ukraine’s Ukrspetsex­port arms trade intermedi­aries signed an agreement on cooperation.[61]

   

Russia

 

21.12.01

Laying down the first pro­ject 20380 corvette for the Russian Navy.[62]

 

The ship is to be commissioned by 2004. The planned series is for up to 10 corvettes.[63]

Russia

Global market

24.12.01

KVTS Chairman Mikhail Dmitriev said that the port­folio of Russian military ex­port orders for 2002 exceeds $2 bln.[64]

$2 bln

This sum includes orders of all Russian arms exporters except Rosoboronexport.[65]

Russia

 

24.10.01

Rosoboronexport acquired 50% + 1 share of the Russian Insurance Center.[66]

   

Russia

Global market

26.12.01

The Russian President said that the revenues from the Russian arms export in 2001 accounted for $4.4 bln.[67]

$4.4 bln

In 2000 the revenues from the Russian arms export accounted for $2.8 bln.

Russia

 

27.12.01

Russia’s vice-premier Ilya Klebanov said that in 2001 the production rise in the Russian defense industry accounted for 115%, military production rise – 118%.[68]

   

Russia

 

December 2001

Rosoboronexport and the government of Marij El Re­public signed a general agreement on cooperation.[69]

   

Russia

Algeria

December 2001

The fulfillment of the 2000 contract for delivery of 22 modernized second-hand Su-24MK (Fencer) bombers to Algeria is prolonged until the end of 2002.[70]

Estimated contract price - $120 mln[71]

In 2001 the prime contractor – NAPA delivered 10 Su-24MK bombers to Algeria.[72]

Russia

 

December 2001

Alexander Chernykh is ap­pointed an executive director of JSC “Izhevsky Oruzheiny Zavod”.[73]

 

JSC “Izhevsky Oruzheiny Zavod” is a subsidiary of JSC Izhmash.

Russia

 

December 2001

RAC “MiG” together with the Russian Air Forces and Rosaviakosmos started certi­fication tests of new MiG-AT trainer.[74]

   

Russia

 

December 2001

Completion of the flight tests of SUV-30K weapons control system for Su-30KN aircraft.[75]

   

Russia

 

December 2001

JSC Izhmash launched serial production of AK-108 as­sault rifle with balanced action.[76]

   

Russia

China

December 2001

Signing of a contract for de­livery of several battalions of S-300 PMU-2 SAM (SA-10) to China.[77]

$400 mln[78]

As a repayment of the Russian debt[79]

Russia

Global market

End of December 2001

The volume RAC “MiG” contracts concluded in 2001 is reported to account for about $900 mln.[80]

$900 mln

In 2001 RAC “MiG” con­cluded 5 contracts for delivery of aircraft and several deals for spare parts and maintenance.[81]

Russia

Global market

End of December 2001

Rostvertol’s production rise in 2001 is reported to ac­count for 15-20%.[82]

 

The exports share in overall production accounted for 90% in 2001. The company deliv­ered Mi-26 (Halo) helicopter to Mexico in 2001.[83]

Russia

India

End of December 2001

IAIA conducted flight test of the first serial Su-30MKI fighter built for India.[84]

   

Russia

Vietnam

End of 2001

Signing of a contract on construction and delivery of 2 project 10410 Svetlyak pa­trol boats to Vietnam.[85]

$40 mln[86]

ALMAZ Shipbuilding Com­pany is appointed as prime contractor.[87]




[1] Mikhail Kozyrev, “Vtoroe iranskoe dykhanie”, Vedomosti, 01.11.2001, p.A3.

[2] JSC Izmash Press-release, 06.11.2001.

[3] “Lend-lease ot Sergeya Ivanova”, Nezavisimaya gazeta, 04.10.2001

[4] Interfax-AVN, 17.10.2001

[5] Ibid.

[6] “Afghanistan pomog Rossii razoruzhitsya”, Kommersant, #46, 20.11.2001, p.14.

[7] Interfax-AVN, 01.10.2001.

[8] Ibid.

[9] Interfax-AVN, 02.10.2001.

[10] Interfax-AVN, 17.10.2001.

[11] Interfax-AVN, 17.10.2001.

[12] Interfax-AVN, 17.10.2001.

[13] Interfax-AVN, 18.10.2001.

[14] Interfax-AVN, 22.10.2001.

[15] Interfax-AVN, 25.10.2001.

[16] Interfax-AVN, 24.10.2001.

[17] Interfax-AVN, 24.10.2001.

[18] “Moskva zanyalas’ vooruzheniyami”, Kommersant, 26.10.2001.

[19] Ivan Safronov, Kommersant, 27.10.2001, p.3.

[20] Liberty Radio, 10.10.2001.

[21] “Aviatziya, kosmos i oruzhie Rossii”, 30.10.2001.

[22] Mikhail Kozyrev, Alexei Nikolski, Alexei Germanovich, «Pogosian ostaetsya”, Vedomosti, 31.10.2001.

[23] Ilya Bulavinov, Ivan Safronov, Kommersant, 01.11.2001, p.2.

[24] Interfax-AVN, 11.10.2001.

[25] Ibid.

[26] Interfax-AVN, 11.10.2001.

[27] Interfax-AVN, 11.10.2001.

[28] “NPK slezaet s “Igly”, Kommersant, 12.10.2001

[29] Mikhail Kozyrev, Alexei Nikolski, “Kak zarabotat’ na OON”, Vedomosti, 25.10.2001.

[30] Ibid.

[31] “Aviatziya, kosmos i oruzhie Rossii”, 31.10.2001.

[32] Ibid.

[33] Nikolai Novichkov, Vladimir Shvarev, “Export rastet”, Vremya MN, 09.11.2001.

[34] INFO-TASS electronic database, “Vega” base, 01.11.2000.

[35] The Military Balance 2001/2002, IISS.

[36] Yuri Golotyuk, “Tanki bez NDS”, Vremya novostei, 15.11.2001.

[37] INFO-TASS electronic database, “Vega” base, 15.11.2000.

[38] Ilya Bulavinov, “Komsomolskiy zavod vyigral $1.5 mlrd u AVPK “Sukhoi”, Kommersant, 19.11.2001.

[39] Ibid.

[40] Ibid.

[41] INFO-TASS electronic database, “Vega” base, 19.11.2000.

[42] Yuri Golotyuk, “Ognem I “Mechom”, Vremya novostei, 19.11.2001.

[43] INFO-TASS electronic database, “Vega” base, 22.11.2000.

[44] Vadim Egorov, “Kontrakt veka vypolnen”, Nezavisimoe voennoe obozrenie, #45, 07-14.12.2001.

[45] “Aviatziya, kosmos i oruzhie Rossii”, 21.11.2001.

[46] Ibid.

[47] “Aviatziya, kosmos i oruzhie Rossii”, 13.11.2001.

[48] Ibid.

[49] Interfax-AVN, 04.12.2001.

[50] INFO-TASS electronic database, “Vega” base, 03.12.2000.

[51] Interfax-AVN, 03.12.2001.

[52] Ibid.

[53] “Geroi Rossii”, Kommersant-Vlast, #49, 04-10.12.2001.

[54] Ibid.

[55] Interfax-AVN, 10.12.2001.

[56] Mikhail Kozyrev, Alexei Nikolski, «Zapchastyam ukazali put”, Vedomosti, 17.12.2001.

[57] Ibid.

[58] INFO-TASS electronic database, “Vega” base, 14.12.2000.

[59] Interfax-AVN, 20.12.2001.

[60] Ibid.

[61] Interfax-AVN, 21.12.2001.

[62] CAST own information.

[63] Ibid.

[64] Interfax-AVN, 24.12.2001.

[65] Ibid.

[66] Pavel Miledin, Mikhail Kozyrev, “Rosoboronexport” kupil strakhovshchika”, Vedomosti, 26.12.2001.

[67] Information of the Russian Presidential Administration Press-service, 26.12.2001, www.president.kremlin.ru.

[68] Interfax-AVN, 27.12.2001.

[69] Interfax-AVN, 18.12.2001.

[70] Interfax-AVN, 05.12.2001.

[71] Ibid.

[72] Ibid.

[73] Interfax-AVN, 25.12.2001.

[74] Interfax-AVN, 11.12.2001.

[75] Interfax-AVN, 14.12.2001.

[76] Interfax-AVN, 20.12.2001.

[77] Alexei Nikolski, Mikhail Kozyrev, “Mirnoe nebo nad Pekinom”, Vedomosti, 26.12.2001.

[78] Ibid.

[79] Ibid.

[80] Information of RAC “MiG” Press-service, cited in Interfax-AVN, 21.12.2001.

[81] Ibid.

[82] Interfax-AVN, 27.12.2001.

[83] Ibid.

[84] Interfax-AVN, 29.12.2001.

[85] Yuri Golotyuk, “Vietnamtzam ponravilis’ rossiiskie storozheviki”, Vremya novostei, 17.01.2002.

[86] Ibid.

[87] Ibid.

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