We Succeeded Doubling Portfolio of Orders

Interview with Boris OBNOSOV, Director of Defense Technologies and Space Department of Rosoboronexport

Could you tell us about the history of your department? When was it set up and in which of the arms trade state mediator companies: Rosvoorouzhenie, Promexport or Rossiiskiye Tekhnologii?

The Defense Technologies and Space Depart­ment was set up in its present form only at the beginning of 2001 within Rosoboronexport on the basis of the Department for Defense Tech­nologies. The core of the personnel comprised former staff members of Rossiiskiye Tekhnologii (Russian Technologies), Promexport and the Department for Space and Special Systems of Rosvoorouzhenie state company. Several sections specializing in contract work under joint R&D projects and R&D on order from the delivery side of Rosoboronexport were also added.

What relative and absolute figures can you name to describe the operations of your de­partment? What is the outlook for 2001?

I would prefer to leave absolute figures undis­closed until the end of the year. I would only want to say that during the short time of its existence the department has managed to double the portfolio of its orders. Today, 140 contract documents concerning 35 countries are being worked upon. We expect the target indicators for 2001 to be fulfilled.

What are the specific features of trade in de­fense technologies? How does it differ from traditional arms sales?

There are quite a few distinctive features. I will name only the most important of them. Any contract in this sphere is unique and requires relatively deep specialist knowledge. The con­tracts themselves as a rule are not sizeable (compared to pure deliveries) but their imple­mentation consists of many stages. The existing system of permits envisaged by the acting legis­lation on military-technical cooperation (MTC) is more intricate and as a rule each contract re­quires preparatory work and direct instructions from the Russian president and government.

At the same time work in this sphere allows our leading research and scientific centers develop­ing modern and advanced weaponry to survive. Besides, practice has shown that R&D contracts create an environment for ensuing bigger, sometimes by one or two orders, as you say, traditional arms sales.

Space contracts still constitute, probably, only a fraction of all Rosoboronexport's contracts.

In what new directions are you planning to ex­pand in order to increase the effectiveness of your department? For several years Rosobo­ronexport has been offering the launch ser­vices of the Kosmos-3M launch vehicle. Are you planning to start using other launch vehi­cles as well?

Space cooperation with foreign states itself is a relatively new sphere for the company's opera­tions. Long and thorough work is required to create a good portfolio of orders. Our company attaches serious attention to it. Today the vol­ume of cooperation is not very great but the existing headway gives optimism to look into the future. The department is working on sev­eral orders from foreign clients to design and build satellite communication systems, systems for earth remote sensing and other space data systems. Some projects are already being carried out on a contract basis.

Since 1998 our company has been offering launch services for foreign spacecraft. Kosmos-3M launch vehicles have placed eight spacecraft in low terrestrial orbits. We are also considering the possibility of using all launch vehicles ex­isting in Russia to meet the needs of foreign cli­ents, including Dnepr (Dnipro) and Strela launch vehicles developed on the basis of inter­continental ballistic missiles.

There have been press reports that Rosoboron­export signed a contract on the launch of German SAR-Lupe radar reconnaissance satel­lites with Kosmos-3M. Are there any legisla­tive obstacles today for the launch of foreign spacecraft from Russian territory? If any, how do you plan to clear them?

It is true that there have been such press reports but they proved premature. It is not clear yet which Russian launch vehicle the foreign client will choose. The final decision may be made be­fore the end of this year or at the beginning of next.

The question of offering services to launch for­eign spacecraft was settled a long time ago and there are no legislative obstacles. In keeping with the established order, foreign spacecraft, including military spacecraft, are launched from Russian territory under federal government decisions.

Several years ago Russia and the United States started working on RAMOS, the first joint military space project. How is work pro­gressing now? How can participation in the pro­ject benefit the Russian side?

At present the Russian-American Observation Satellite (RAMOS) project of monitoring the earth and atmosphere from space is unfolding on the scope and within the timeframe set by con­tract between Rosoboronexport and the Space Dynamics Laboratory of Utah State University. The Russian-American scientific and technical groups meet regularly. They coordinate require­ments to the system, design and mock up high precision units of the system, work out the sci­entific program of the project and plan of experiments.

Participation in the project will allow the Rus­sian side to form a database of stereo images in various spectral bands, collect new data on the distribution of temperatures on the underlying earth surface and summarize data on convective heat transfer in the lower atmosphere level for developing background atmospheric radiation patterns necessary for weather forecasting and resolving certain environmental problems. In addition, the Russian side will be able to design new onboard and ground equipment and appara­tuses and develop the technology of making space-based data systems of a new generation.

Rosoboronexport official statements note that your department engages in space remote sensing. Commercial companies have appeared in the United States and Israel selling compa­rable products. They are selling high-resolu­tion images (1 m and more) and fulfil orders quickly (in several days). Are you planning to compete with them for contracts? After all Russian earth remote sensing systems are not known to be as fast.

In the first place, not everything is as bad as the press sometimes says: the Russian potential in space remote sensing is far from being ex­hausted. Neither is everything ideal with our foreign "colleagues": it takes them several months to carry out orders. A satellite crosses the same point once in several days and the earth is almost 70% covered with clouds.

It's true that we have lost our monopoly posi­tion and the possibility of dictating our own terms. A market is a market. But unlike our competitors we are not offering for export raw material in the form of unprocessed images but high tech products made on their basis: very de­tailed and accurate maps, digital terrain models, geodata systems. A short contract implementa­tion time is not decisive for most of these products.

Besides, no other country in the world has caught up with Russia's capacity to cover big territories in one image. It takes many months for foreign satellites to image a comparable area.

At the same time I would want to wish our in­dustry to get more funds to develop new sys­tems for remote sensing from space. The latest developments in the world have clearly demon­strated growing demand for space imaging and we are sure that revenues from foreign trade could be significantly greater.

How did the formation of the Space Forces as a separate arm of service affect your work?

The separation of the Space Forces from the Strategic Rocket Forces into a distinct arm of service, of course, promotes more purposeful ef­forts to advance space services on foreign markets.

We established close ties since the very first days of the existence of the Space Forces. The Space Forces' command thinks it very important to participate in joint space projects through Rosoboronexport for the benefit of foreign cli­ents in order to strengthen Russia's international reputation as an advanced space power.

Representatives of the Space Forces take part in the work of a mixed working group of technical experts set up under a joint decision of the chief of the General Staff of the Russian Armed Forces, the general director of the Russian Avia­tion and Space Agency, the chairman of the Russian Committee for Military-Technical Co­operation with Foreign States (CMTC) and general director of Rosoboronexport. Group ses­sions discuss concrete aspects of cooperation with foreign countries paying maximum atten­tion to the interests of the Russian Defense Ministry.

In January 2001 the Russian Security Council decided to give several military space systems the status of dual-purpose systems. What new opportunities did this give to your operations?

Almost none, as we work mainly with military clients and under the law on military-technical cooperation the general rules of MTC apply to dual-purpose goods delivered for military purposes.

Can you confirm reports that China has been showing interest in the joint use with Russia of GLONASS global navigation system? What concrete forms can Russian-Chinese cooperation in this sphere have?

As you know, Russia, unlike the United States, has declared many times its readiness to build, maintain and use GLONASS system together with other countries in the interests of the en­tire world community. It is common knowledge that to this end Russia for several years held talks on cooperation with the European Union. However, Europe announced intentions to de­velop its own Galileo system. Nobody can tell definitely whether the system will need Russian technical or industrial potential in any way. Hence, if China is ready to join the use of GLONASS, we will be ready for such cooperation.