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#5 (67), 2018

CONTENTS

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Facts & Figures

Arms Trade Database for October-December 2002

Supplier

Recipient

Date

Description of Event

Value

Notes

Information for previous period

Russia

India

2002

Instrument Building Design Bureau signed contract for de­livery to 28 upgraded Tun­guska-M1 anti-aircraft artillery systems to India[1].

   

Russia

 

January-September 2002

IAIA receipts stood at 12 bln rubles (about $390 mln) in first 9 months of 2002[2].

   

Russia

 

2002

Defense Minister Sergey Ivanov said 14 warships re­turned to service with the Pa­cific Fleet in 2002 after re­pairs[3].

   

Russia

 

January-November 2002

JSC Degtyaryov Plant in Kov­rov, Vladimir region, posted untaxed profits for 11 months of 2002 at 536.9 mln rubles (about $17 mln)[4].

 

Government defense order constituted 1.3% of overall production. The plant manufactures missile sys­tems and small arms[5].

October

Russia

 

Early October 2002

IST Group sold its 18.85% stake in JSC Shipbuilding plant Severnaya Verf to RI­NACO company of MDM Group[6].

 

Severnaya Verf currently builds two destroyers for China and a series of frig­ates for the Russian Navy.

Russia

India

Early October 2002

Rosoboronexport signed a con­tract with Stankoimport trad­ing company on the delivery of production equipment to India for the manufacture of Su-30MKI multirole fighters un­der license[7].

Over $300 mln[8]

 

Russia

 

3.10.2002

Rosoboronexport and JSC Kamaz signed a framework agreement on cooperation[9].

 

The agreement provides for regular information ex­changes, coordination of pre-contact efforts, joint participation in interna­tional exhibitions of mili­tary, civilian and dual-pur­pose goods.

Russia

 

3.10.2002

Completion of incorporation of Avitek[10].

 

Avitek was incorporated af­ter being included in the Almaz-Antey Air Defense Concern. 74.5% in Avitek will belong to the Concern, the rest to the federal gov­ernment[11]. Avitek manufac­tures guided anti-aircraft missiles, aircraft armaments and subsystems.

Russia

 

4.10.2002

The Russian Federation Com­mittee for Military-Technical Cooperation with Foreign States (CMTC) decided to al­low holdings emerging in the Russian defense industry under its restructuring plan to con­duct independent foreign eco­nomic operations[12].

   

Russia

 

7.10.2002

Baltiysky Zavod shipyard Board of Directors decided against cooperation with Ship­building plant Severnaya Verf[13].

   

Russia

Collective Security Treaty countries

7.10.2002

Presidents of Armenia, Bela­rus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan signed documents regulating the op­erations of the international regional organization formed on the basis of the Collective Security Treaty[14].

   

Ukraine

Russia

9.10.2002

Ukrainian Cabinet issued a de­cree on the transfer of certain components of RS-18 (SS-19) strategic missiles decommis­sioned in Ukraine to Russia[15].

 

The components will be de­livered in 2002-2003[16].

Ukraine

Armenia

10.10.2002

During the visit of Ukrainian President Leonid Kuchma to Armenia the Defense Minis­tries of the two countries signed a military cooperation agreement[17].

   

Ukraine

 

14.10.2002

Ukraine started the disposal of 30 Tu-22 bombers and 230 Kh-22 (AS-4) cruise missiles in keeping with the START Treaty.[18]

 

The disposal is financed by the United States and con­ducted at the Ukrainian Aviation Transport Com­pany[19].

Russia

World market

14.10.2002

CMTC issued three-year li­censes for the independent ex­port of military-use spares and services to Sukhoi Aircraft Military and Industrial Com­plex, MMPP Salyut, Pribor Federal Scientific and Produc­tion Center, Rubin Naval De­sign Bureau[20].

 

The corresponding presi­dential decree was signed on 16.09.2002.

Ukraine

 

16.10.2002

Valery Kazakov was appointed state secretary for the defense industry and engineering of the Ukrainian Industrial Policy Ministry by presidential de­cree[21].

   

Russia, Rosoboron­export

Jordan

17.10.2002

Rosoboronexport signed a con­tract for the delivery to Jordan of PSS silenced pistols and VSS silenced sniping rifles[22].

$100,000[23]

 

Russia

China

21.10.2002

FSUE Admiralty Shipyards laid down two Project 636 die­sel submarines for the Chinese Navy[24].

 

Under the 3.05.2002 Ro­soboronexport contract for $1.5 bln for the delivery of 8 Project 636 diesel subma­rines to China. Five subs will be built at the Admi­ralty Shipyards (St. Peters­burg), two at Sevmash (Severodvinsk) and one at Krasnoye Sormovo (Nizhny Novgorod).

Russia, Instrument Building Design Bureau

World market

October 2002

The publication of reports that the export deliveries of the In­strument Building Design Bu­reau in 2002 exceeded $400 mln[25].

$400 mln

 

Russia

 

October 2002

JSC Kazan Helicopters started certification tests of the Ansat light helicopter for a type cer­tificate of the Aviation Regis­ter of the Interstate Aviation Committee[26].

 

With the certificate the plant can launch the serial production of the helicop­ter. Kazan Helicopters al­ready have contracts for 12 Ansat helicopters, one of them for export[27].

Russia

 

October 2002

The Russian government issued a decree on the formation of Voentelecom[28].

 

The task of Voentelecom is to maintain and develop communication systems of the Russian Armed Forces, other troops, military for­mations and agencies. It will be subordinate to the Defense Ministry[29].

Russia

Indonesia

October 2002

The delivery of 12 BTR-80 APCs and their spares made at Arzamas Machine-Building Plant (Nizhny Novgorod re­gion) to Indonesia[30].

$6.5 mln[31]

 

Russia

India

October 2002

The publication of reports that given changes in the require­ments of the Indian side to the MTA (Multifunctional Trans­port Aircraft) program the be­ginning of deliveries of the air­craft to customers will be postponed from 2005 to 2007[32].

 

India changed the require­ments to the basing condi­tions of the aircraft (air­fields at the altitude of 3,300 meters), which re­quires the replacement of PS-9 engines (thrust of 9 tonnes) with PS-12 (12 tonnes). India needs no less than 35-50 aircraft of the MTA class[33].

Russia

 

October 2002

Russian Defense Ministry or­dered from Kurganmashzavod the delivery of spares for AIFVs and repairs of a batch of vehicles in 2003[34].

200 mln ru­bles (about $6.5 mln)[35]

 

Russia

 

October 2002

Bankruptcy procedures were launched at FSUE Omsktransmash under a ruling of the Omsk region Arbitration Court[36].

 

The payables of the facility making T-80U tanks total almost 1 billion rubles (about $32 mln)[37].

Russia

 

October 2002

Gennady Kozlov was ap­pointed general director of the Russian Agency of Control Systems[38].

   

Russia

 

October 2002

Saturn NPO signed a contract with the Kamov Company on the delivery at the end of 2002 of two RD-600V engines for the second model of the Ka-60 (Kasatka) multipurpose heli­copter under construction at Lukhovitsy aviation produc­tion and test complex[39].

   

Russia

India

October 2002

Rostvertol started implement­ing a contract on the overhaul and partial upgrading of 4 Mi-35 (Hind E/F) helicopters and one Mi-26 (Halo) trans­port helicopter of the Indian Air Force[40].

   

Russia

 

January-October 2002

Total production of military goods at Ural Optical & Me­chanical Plant (Yekaterin­burg) soared 28% in January-October 2002 year-on-year[41].

   

November

Armenia

Russia

05.11.2002

Armenia signed documents on the transfer to the Russian government of shares in 4 Ar­menian defense industry facili­ties as the re-payment of gov­ernment debts[42].

 

The facilities acquired by Russia (Mars CJSC, the Yerevan Materials Research Institute, the Yerevan Computer Technology Re­search Institute and the Yerevan Research Institute for Automatic Control Sys­tems) will be subordinate to the Russian Agency of Control Systems[43].

Russia

World market

12.11.2002

Rosoboronexport General Di­rector Andrei Belyaninov stated that since the beginning of 2002 his company had per­formed contract operations for $3.4 billion[44].

$3.4 bln

The Rosoboronexport target figure for contract opera­tions in 2002 stood at $3.5 billion[45].

Russia

 

12.11.2002

The Board of Aircraft-Building Plant Sokol (Nizhny Nov­gorod) appointed technical di­rector Mikhail Shibayev its acting CEO because the former CEO Vasili Pankov had been appointed vice president of the Kaskol Group[46].

 

Kaskol Group is one of the major shareholders of the Sokol Plant.

Russia

China

15.11.2002

Second destroyer of Project 956EM was laid down at JSC Shipbuilding plant Severnaya Verf. It is built under the 03.01.2002 contract with China for the delivery of two destroyers[47].

Total con­tract sum is $1.4 bln[48]

The first destroyer was laid down in June 2002[49].

Russia, Europe

 

18.11.2002

Kaskol Group and EADS aero­space concern signed a proto­col on the formation of an en­gineering center in Russia to develop units and components for Airbus aircraft fuselages[50].

   

Russia

Uruguay

25.11.2002

Completion of delivery of 200 Uralaz trucks and four Golaz and Liaz buses to the Defense Ministry of Uruguay under an April 2002 contract with Ro­soboronexport[51].

   

Russia

Algeria

29.11.2002

The launch of the Russian Mozhayets satellite and the Algerian AlSat-1satellite with the Kosmos-3M light LV from Plesetsk space center[52].

 

The Algerian satellite was launched under a contract between Rosoboronexport and the British SSTL[53].

Russia

India

November 2002

The beginning of state trials of the Project 11356 Trishul frig­ate built for the Indian Navy[54].

 

Trishul was laid down in September 1999 and launched in November 2000. It is the second of three frig­ates built at Baltiysky Zavod shipyard for the Indian Navy under a 1997 contract.

Russia

Mexico

November 2002

Reports in the Russian media that Rosoboronexport signed two contracts for the delivery of 5 Igla MANPADs and 2 Mi-171V (Hip H) military trans­port helicopters to Mexico[55].

Estimated sum of the contracts – up to $15 mln[56].

The MANPADs will be used for security purposes at strategic oil extracting sites in the Gulf of Mexico.

Russia

 

November 2002

The Russian Property Minis­try, the government of Tatar­stan and the leadership of Aerospace Equipment Corpora­tion signed an agreement on the transfer of 51% of shares in Radiopribor plant in Kazan to the Corporation[57].

 

Presently the Tatarstan Ministry of Land and Prop­erty Relations owns 100% in the plant. The transfer is part of the effort of the federal government to reor­ganize Radiopribor and merge it with the Aerospace Equipment Corporation. The legal documentation of the stake transfer was ex­pected to be completed by the end of 2002[58].

Russia

Libya

November 2002

Representatives of Libyan Air Defense and Aviastar JV signed a letter of intent under which the Russian side would service two Libyan An-124 transport planes purchased from Ukraine[59].

 

The letter also states that the Libyan side would ac­quire up to five Tu-204-100 aircraft assembled at Avia­star[60].

Russia, Rosoboron­export

Algeria

November 2002

Media reports that Rosoboron­export signed a contract for the delivery of 42 Mi-17 (Hip H) helicopters to Algeria[61].

$200 mln[62]

 

December

Russia

Unknown

Early December 2002

It is reported that OJSC Ra­diopribor (Vladivostok) is be­ginning to implement an ex­port contract[63].

 

Radiopribor manufactures components for the Moskit (SS-N-22 Sunburn) super­sonic ship-to-ship missile made at Progress plant (Ar­senyev)[64].

Russia

 

Early December 2002

SIBUR Holding Vice Presi­dent Viktor Zorkin declares that the holding will keep its stake in Kurganmashzavod[65].

 

Kurganmashzavod is Rus­sia’s biggest manufacturer of light armored vehicles.

Russia

 

Early December 2002

The first stage of official test­ing of the upgraded Pechora-2A surface-to-air missile system developed by Almaz Scientific Production Association named after Raspletin is completed[66].

   

Russia

 

2.12.2002

The Arbitration Court of St. Petersburg supports the appeal of JSC Shipbuilding plant Severnaya Verf against the July 8, 2002 ruling of the court on the first instance on recovering 19.3 billion rubles ($603 million) from Severnaya Verf[67].

 

The court passed a ruling binding Severnaya Verf to repay to the government the 182.6 million rubles (about $6 mln) spent on the construction of 2 Pro­ject 956 destroyers laid down for the Russian Navy and in 1999-2000 sold to China for $614 million[68].

Russia

World market

10.12.2002

Chairman of the Russian Fed­eration Committee for Mili­tary-Technical Cooperation with Foreign States (CMTC) Mikhail Dmitriev declares that arms exports exceeded $4 bil­lion and foreign currency re­ceipts from arms exports ex­ceeded $4.4 billion in 2002[69].

Over $4 bil­lion

Dmitriev said that Rosobo­ronexport had exported $3.4 billion worth of arms and military hardware by the beginning of December 2002[70].

Russia, Ro­soboronex­port

China

16.12.2002

Nine Su-30MKK multirole fighters and aircraft equipment are delivered to China under the 2001 contract for 38 fight­ers[71].

   

Russia

 

19.12.2002

A Su-35 fighter (board number 711) of Sukhoi Design Bureau crashes in Moscow region during a test flight[72].

 

Early reports attributed the crash to a failure of the air­craft’s remote control sys­tem[73].

Russia

 

20.12.2002

The Volga radar station for the detection of ballistic missiles and space objects enters test-and-combat duty with the Russian Space Forces near Baranovichi, Belarus[74].

   

Russia

Ukraine

23.12.2002

The Russian and Ukrainian de­fense ministers sign a plan of bilateral military-technical co­operation for 2003[75].

   

Ukraine

World market

25.12.2002

Ukrainian President Leonid Kuchma signs a decree on ad­ditional measures to improve control over arms export[76].

 

Under the decree, in order to speed up the imposition or lifting of UN arms em­bargoes in Ukraine, the Committee for Military Technical Cooperation Policy and Export Control and other Ukrainian gov­ernment bodies in charge of international military-tech­nical cooperation and ex­port control can apply or lift sanctions after receiving a report from the Ukrainian Foreign Ministry, before the adoption of corre­sponding Cabinet acts[77].

Russia

 

December 2002

The International Industrial Bank extends a loan of over $2 mln to Kronshtadt Shipyards for debt settlements with Zenit Bank[78].

 

The shipyard acquired great debts as a result of prob­lems fulfilling a contract for upgrading two ships of Projects 1234E Ovod (Na­nuchka class) and 1159T (Koni class) for Algeria, thus failing to receive $18.4 million[79].

Russia, Ro­soboronex­port

Vietnam

December 2002

Two Svetlyak Project 10412 patrol boats are delivered to the Vietnamese Navy under a 2001 contract[80].

$40 million[81]

 

Russia

 

December 2002

The Yekaterinburg nuclear submarine (Northern Fleet) completes the first stage of sea trials after repairs[82].

 

The submarine has been under repairs at Zvezdo­chka ship repair facility (Severodvinsk) since 1996[83].


[1] "Donskiye kazaki zatmili russkoye oruzhie", Kommersant, 04.10.2002.

[2] NAUFOR. Emitent newswire, 29.10.2002.

[3] Interfax-AVN, 6.11.2002.

[4] Interfax-AVN, 6.12.2002.

[5] Interfax-AVN, 15.11.2002.

[6] Interfax-AVN, 7.10.2002.

[7] ITAR-TASS, 14.10.2002.

[8] Ibid.

[9] RIA-Novosti, 3.10.2002.

[10] Olga Gilyazeva, "Avitek aktsionirovalsya", Vytasky krai (Kirov), 9.10.2002.

[11] Ibid.

[12] Ivan Safronov, Konstantin Lantratov, "Vladimir Putin podpisal prigovor Rosoboronexportu", Kommersant, 5.10.2002.

[13] Interfax-AVN, 7.10.2002.

[14] Interfax-AVN, 7.10.2002.

[15] Xinhua news agency, 9.10.2002

[16] Ibid.

[17] Prime-News (Georgia), 10.10.2002.

[18] Interfax-AVN, 14.10.2002.

[19] Ibid.

[20] Alexei Nikolsky, Anna Shcherbakova, "Voennye zapchasti pustili za granitsu", Vedomosti, 18.10.2002.

[21] Interfax-AVN, 16.10.2002.

[22] Konstantin Lantratov, "Rossiya prodast Iordanii spetsoruzhie", Kommersant, 19.10.2002.

[23] Ibid.

[24] Konstantin Lantratov, "V Sankt-Peterburge zalozheny dve podlodki dlya Kitaya", 22.10.2002.

[25] "Donskiye kazaki zatmili russkoye oruzhie", Kommersant, 04.10.2002.

[26] Interfax-AVN, 09.09.2002.

[27] Ibid.

[28] Interfax-AVN, 10.10.2002.

[29] Ibid.

[30] Interfax-AVN, 11.10.2002.

[31] ITAR-TASS, 21.11.2002.

[32] Interfax-AVN, 15.10.2002.

[33] Ibid.

[34] UralPolit.ru, 15.10.2002.

[35] Ibid.

[36] "Omsky tankovy zavod obyavlen bankrotom", Kommersant, 17.10.2002.

[37] Ibid.

[38] Interfax-AVN, 21.10.2002.

[39] Interfax-AVN, 23.10.2002.

[40] Interfax-AVN, 24.10.2002.

[41] Interfax-AVN, 4.11.2002.

[42] RIA-Novosti, 5.11.2002.

[43] Ibid; Armenian ARKA news agency, 8.11.2002.

[44] Interfax-AVN, 12.11.2002.

[45] Ibid.

[46] Leonid Zavarsky, "Direktor aviazavoda sovershil vertikalny vzlyot", Kommersant, 13.11.2002.

[47] "Severnaya verf zalozhila vtoroi esminets dlay Kitaya", Kommersant, 18.11.2002.

[48] Ibid.

[49] Ibid.

[50] Interfax-AVN, 18.11.2002.

[51] RIA-Novosti, 25.11.2002.

[52] Parlamentskaya gazeta, 30.11.2002.

[53] Ibid.

[54] Interfax-AVN, 15.11.2002.

[55] Kosntantin Lantartov, "Meksika zakupila pyat Igl dlya okhrany svoyei nefti ot terroristov", Kommesant, 19.11.2002.

[56] Ibid.

[57] Interfax-AVN, 20.11.2002.

[58] Ibid.

[59] Interfax-AVN, 28.11.2002.

[60] Ibid.

[61] "Pyatyorka silnykh", Gazeta, 11.11.2002; CAST information.

[62] Ibid.

[63] Vostok-Media. Novosti Dalnego Vostoka, 04.12.2002.

[64] Ibid.

[65] Alexei Grivach, "Gosudarstvo – eto my", Vremya novostei, 04.12.2002.

[66] Interfax-AVN, 04.12.2002.

[67] RIA RosBusinessConsulting, 02.12.2002.

[68] Ibid.

[69] Interfax-AVN, 10.12.2002.

[70] Ibid.

[71] Interfax-AVN, 16.12.2002.

[72] Nezavisimoe voennoe obozrenie, 27.12.2002.

[73] Ibid.

[74] Nezavisimoe voennoe obozrenie, 27.12.2002.

[75] Nezavisimoe voennoe obozrenie, 27.12.2002.

[76] Interfax-Ukraine, 25.12.2002.

[77] Ibid.

[78] Rosbalt news agency, 24.12.2002.

[79] Ibid.

[80] Aviatsiya, kosmos, vooruzheniya, 20.12.2002.

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

[82] Aviatsiya, kosmos, vooruzheniya, 20.12.2002.

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