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Agency WPS
DEFENSE and SECURITY (Russia)
May 30, 2005, Monday
WHOSE ARMAMENT IS BETTER?
SOURCE: Trud, May 26, 2005, p. 6
by Alexander Komlev
The dynamic development of military and technical cooperation in the
Union State of Russia and Belarus will promote provision of stability
and security in Eurasia. Director General of FGUP Rosoboronexport
Sergei Chemezov talks about the state and prospects of
Russian-Belarusian military and technical cooperation.
Question (Q.): Sergei Viktorovich, how can the military and technical
cooperation be characterized in the post-Soviet territory today?
S. Chemezov: Russia concluded the agreements on military and
technical cooperation with Ukraine, Belarus, Moldova, Kazakhstan,
Kyrgyzstan, Uzbekistan, Turkmenistan, Tajikistan, Armenia and
Azerbaijan. At that, this cooperation is special with each state.
The state participants of the Organization of Collective Security
Treaty, i.e. Armenia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan,
have preferences in the course of purchases of Russian military
production. However, there is one important reservation. The
purchased military hardware should be adopted in the national
military units included in the collective forces of fast response.
Only in this case the export cost of the production will be equal to
the purchasing price for Russian Armed Forces.
Besides, the value added tax isn't levied on advance payments of
allies and delivery is carried out at Russian internal prices. In
case of the withdrawal of some side from the Treaty, the preferences
should be liquidated and difference between the export and reduced
prices should be drawn up as the national debt.
Specialists have already calculated that the participation in the
joint military and technical project of three-four states reduced
their expenditures of each state by 70-100%.
On conditions that about 500 enterprises of Russian defense industry
have co-operational production, scientific and technical relations
with over 1200 managing subjects of the CIS, not only an economic
effect but the total increase in this or that high-tech sphere is
guaranteed. As it is known, 103 enterprises, which belong to Russia,
Armenia, Belarus and Ukraine, participate in the cooperation for
production of anti-aircraft missile system S-300PM. Moreover, 568 CIS
enterprises participate in production of MiG-29.
Of course, it is rather difficult to cooperate in the situation when
a lot of ties for development and production of armament were lost
and united technological chains were broken. The aircraft building is
very sensitive to it. As it is known, the state of this industry
plays a significant role in provision of national and collective
security. Each fifth plant, which produced flying vehicles and
airborne electronics, found itself abroad in 1991-1992. Russian
aircraft building lost over 40% of repair plants and 15% of
enterprises for production of engines for military requirements and
aircraft armament. Several enterprises, which had produced component
parts, had to work in the Baltic States, Moldova and Kazakhstan.
Russia practically lost the plants for production of military
transport helicopters (they are situated in Ukraine and Uzbekistan
now), engines for helicopters, cruise missiles and military transport
planes (basically, in Ukraine), elements of airborne electronics and
armament, including homing heads for air-to-air and air-to-surface
missiles.
Q.: What countries set the integration pace today?
S. Chemezov: Of course, Russian-Belarusian cooperation is an example
of development of the integration processes. The result of
cooperation, which has been stirred up since the late 90s, is the
growth of the share of armament and military hardware produced in
cooperation between Russian and Belarusian defense enterprises in the
joint export of Russian production. In accordance with some
appraisals, it reached the level of 30-35%. It is conditioned by the
fact that about 33% of assembly capacities and corresponding research
centers of the ex-USSR are concentrated in Belarus. Moreover, the
political leaderships of our countries try to strengthen our
bilateral relations.
Q: Did the disintegration and breakup of cooperation ties between
defense industries of ex-republics of the USSR tell on the export of
armament?
S. Chemezov: Unfortunately, the motives and facts of dumping behavior
of several companies on the market still persist. On the whole, it
seems that the potential of free competition between CIS countries
has already exhausted its resources. The phase of joining of efforts
in the sphere of military and technical cooperation and coordination
of joint actions on the world armament market takes place now. The
coordination of prices is another important factor. The profitability
of special exporters can be increase by 10-14% in case of use of
joint price policy. The regime of mutual supplies for cooperation
promotes the reconstruction of scientific, technical and production
cooperation between defense industries of Russia and Belarus.
The lists for supplies of over 600 items of production from 59
enterprises of Belarus for 68 enterprises of Russian defense industry
and of about 500 items of production of Belarusian defense industrial
complex without licensing and imposing of any customs duties.
The actions of Russian and Belarusian special exporters are well
coordinated today.
Q.: How is it possible to characterize the jural space in the sphere
of military and technical cooperation between Russia and Belarus?
S. Chemezov: As a favorable one. The military and technical
cooperation between Russia and Belarus has being carried out since
July, 1992. Several bilateral intergovernmental agreements were
concluded. The agreement on mutual protection of rights to results of
the intellectual activity used in the course of the bilateral
military and technical cooperation, which was concluded between
Russian and Belarusian governments, became another step on the way of
improving and unification of the standard-legal base in the frames of
the Union State. The most important fact is that both sides undertake
not to supply military production made with the use of intellectual
property of one of the sides to third countries without coordination.
By the way, Russia and Kazakhstan signed the same agreement too.
Q.: What role do intergovernmental financial and industrial groups
play on the CIS market?
S. Chemezov: The role of intergovernmental financial and industrial
(MFPGs) is very important in creation of the united technological
space in the framework of the Union State and CIS. Several
Russian-Belarusian MFPGs, e.g. Oboronitelniye Sistemy, BelRusAvto,
Elektronniye Tekhnologii etc., are working in the Union State. At the
present moment, the question concerning the participation of some
artificial person of Ukraine in MFPG Oboronitelniye Sistemy is being
solved at the present moment.
Q.: In what projects and spheres is the military and technical
cooperation between Russia and Belarus especially productive?
S. Chemezov: The biggest potential of the military and technical
cooperation is in the sphere of capital repairs and upgrading of
military hardware, including planes Su-22, Su-27, MiG-29, helicopters
Mi-8 and Mi-17, combat infantry vehicles BMP-1 and BMP-2, armored
troop-carriers BTR-60 and BTR-70, anti-aircraft systems S-300V and
communications facilities. Belarusian defense industrial complex has
great opportunities in this sphere. For example, over 100 Belarusian
enterprises participated in joint programs of upgrading of military
production made in the USSR at the present moment.
Belarusian-Russian center of after-sales service, upgrading and
repair of armament and military hardware for anti-aircraft forces
Oboronpromservis seems to be a very prospective and interesting
project. This interstate structure will provide the activity for
maintenance of anti-aircraft facilities deployed on the territory of
Belarus, Kaliningrad region and North-Western region of Russia.
We have also the so-called international projects. For example, FGUP
Rosoboronexport, Belarusian special exporter Beltekhexport, public
corporation Peleng and French company Tales participate in the
international tender for supplies of modern fire control systems for
upgrading of T-72M1, basic tanks of Indian Armed Forces. The
foundation of the fire control system is the day and night
multi-channel thermal imaging sight "Sosna-U" produced by Belarus.
(...)
DEFENSE and SECURITY (Russia)
May 30, 2005, Monday
WHOSE ARMAMENT IS BETTER?
SOURCE: Trud, May 26, 2005, p. 6
by Alexander Komlev
The dynamic development of military and technical cooperation in the
Union State of Russia and Belarus will promote provision of stability
and security in Eurasia. Director General of FGUP Rosoboronexport
Sergei Chemezov talks about the state and prospects of
Russian-Belarusian military and technical cooperation.
Question (Q.): Sergei Viktorovich, how can the military and technical
cooperation be characterized in the post-Soviet territory today?
S. Chemezov: Russia concluded the agreements on military and
technical cooperation with Ukraine, Belarus, Moldova, Kazakhstan,
Kyrgyzstan, Uzbekistan, Turkmenistan, Tajikistan, Armenia and
Azerbaijan. At that, this cooperation is special with each state.
The state participants of the Organization of Collective Security
Treaty, i.e. Armenia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan,
have preferences in the course of purchases of Russian military
production. However, there is one important reservation. The
purchased military hardware should be adopted in the national
military units included in the collective forces of fast response.
Only in this case the export cost of the production will be equal to
the purchasing price for Russian Armed Forces.
Besides, the value added tax isn't levied on advance payments of
allies and delivery is carried out at Russian internal prices. In
case of the withdrawal of some side from the Treaty, the preferences
should be liquidated and difference between the export and reduced
prices should be drawn up as the national debt.
Specialists have already calculated that the participation in the
joint military and technical project of three-four states reduced
their expenditures of each state by 70-100%.
On conditions that about 500 enterprises of Russian defense industry
have co-operational production, scientific and technical relations
with over 1200 managing subjects of the CIS, not only an economic
effect but the total increase in this or that high-tech sphere is
guaranteed. As it is known, 103 enterprises, which belong to Russia,
Armenia, Belarus and Ukraine, participate in the cooperation for
production of anti-aircraft missile system S-300PM. Moreover, 568 CIS
enterprises participate in production of MiG-29.
Of course, it is rather difficult to cooperate in the situation when
a lot of ties for development and production of armament were lost
and united technological chains were broken. The aircraft building is
very sensitive to it. As it is known, the state of this industry
plays a significant role in provision of national and collective
security. Each fifth plant, which produced flying vehicles and
airborne electronics, found itself abroad in 1991-1992. Russian
aircraft building lost over 40% of repair plants and 15% of
enterprises for production of engines for military requirements and
aircraft armament. Several enterprises, which had produced component
parts, had to work in the Baltic States, Moldova and Kazakhstan.
Russia practically lost the plants for production of military
transport helicopters (they are situated in Ukraine and Uzbekistan
now), engines for helicopters, cruise missiles and military transport
planes (basically, in Ukraine), elements of airborne electronics and
armament, including homing heads for air-to-air and air-to-surface
missiles.
Q.: What countries set the integration pace today?
S. Chemezov: Of course, Russian-Belarusian cooperation is an example
of development of the integration processes. The result of
cooperation, which has been stirred up since the late 90s, is the
growth of the share of armament and military hardware produced in
cooperation between Russian and Belarusian defense enterprises in the
joint export of Russian production. In accordance with some
appraisals, it reached the level of 30-35%. It is conditioned by the
fact that about 33% of assembly capacities and corresponding research
centers of the ex-USSR are concentrated in Belarus. Moreover, the
political leaderships of our countries try to strengthen our
bilateral relations.
Q: Did the disintegration and breakup of cooperation ties between
defense industries of ex-republics of the USSR tell on the export of
armament?
S. Chemezov: Unfortunately, the motives and facts of dumping behavior
of several companies on the market still persist. On the whole, it
seems that the potential of free competition between CIS countries
has already exhausted its resources. The phase of joining of efforts
in the sphere of military and technical cooperation and coordination
of joint actions on the world armament market takes place now. The
coordination of prices is another important factor. The profitability
of special exporters can be increase by 10-14% in case of use of
joint price policy. The regime of mutual supplies for cooperation
promotes the reconstruction of scientific, technical and production
cooperation between defense industries of Russia and Belarus.
The lists for supplies of over 600 items of production from 59
enterprises of Belarus for 68 enterprises of Russian defense industry
and of about 500 items of production of Belarusian defense industrial
complex without licensing and imposing of any customs duties.
The actions of Russian and Belarusian special exporters are well
coordinated today.
Q.: How is it possible to characterize the jural space in the sphere
of military and technical cooperation between Russia and Belarus?
S. Chemezov: As a favorable one. The military and technical
cooperation between Russia and Belarus has being carried out since
July, 1992. Several bilateral intergovernmental agreements were
concluded. The agreement on mutual protection of rights to results of
the intellectual activity used in the course of the bilateral
military and technical cooperation, which was concluded between
Russian and Belarusian governments, became another step on the way of
improving and unification of the standard-legal base in the frames of
the Union State. The most important fact is that both sides undertake
not to supply military production made with the use of intellectual
property of one of the sides to third countries without coordination.
By the way, Russia and Kazakhstan signed the same agreement too.
Q.: What role do intergovernmental financial and industrial groups
play on the CIS market?
S. Chemezov: The role of intergovernmental financial and industrial
(MFPGs) is very important in creation of the united technological
space in the framework of the Union State and CIS. Several
Russian-Belarusian MFPGs, e.g. Oboronitelniye Sistemy, BelRusAvto,
Elektronniye Tekhnologii etc., are working in the Union State. At the
present moment, the question concerning the participation of some
artificial person of Ukraine in MFPG Oboronitelniye Sistemy is being
solved at the present moment.
Q.: In what projects and spheres is the military and technical
cooperation between Russia and Belarus especially productive?
S. Chemezov: The biggest potential of the military and technical
cooperation is in the sphere of capital repairs and upgrading of
military hardware, including planes Su-22, Su-27, MiG-29, helicopters
Mi-8 and Mi-17, combat infantry vehicles BMP-1 and BMP-2, armored
troop-carriers BTR-60 and BTR-70, anti-aircraft systems S-300V and
communications facilities. Belarusian defense industrial complex has
great opportunities in this sphere. For example, over 100 Belarusian
enterprises participated in joint programs of upgrading of military
production made in the USSR at the present moment.
Belarusian-Russian center of after-sales service, upgrading and
repair of armament and military hardware for anti-aircraft forces
Oboronpromservis seems to be a very prospective and interesting
project. This interstate structure will provide the activity for
maintenance of anti-aircraft facilities deployed on the territory of
Belarus, Kaliningrad region and North-Western region of Russia.
We have also the so-called international projects. For example, FGUP
Rosoboronexport, Belarusian special exporter Beltekhexport, public
corporation Peleng and French company Tales participate in the
international tender for supplies of modern fire control systems for
upgrading of T-72M1, basic tanks of Indian Armed Forces. The
foundation of the fire control system is the day and night
multi-channel thermal imaging sight "Sosna-U" produced by Belarus.
(...)