Tanks cross the border ("Gazeta Finansowa", Poland)
The world market of large players producing military equipment has remained virtually unchanged for many years. The military industry, implementing long-term contracts, is focused primarily on the demonstration of new products, then on their sale, maintenance and modernization. Entrance to a specific market, for example, with a dozen tanks, makes it possible to subsequently conclude additional contracts.
The conclusion of contracts for the supply of weapons is a kind of game of intelligence, diplomats and manufacturers. Lobbying government circles is usually aimed at maintaining their own industries. This is known to Americans, Russians, and more recently, in particular, the Czechs. The United States has been the largest global arms exporter for many years, and in one 2012 year, they earned 25 billions of dollars. In second place is Russia, with a score of 15 billion dollars. Next come France (5,6 billion), Germany (4,5 billion), Great Britain (3,2 billion), Israel and Italy (by 2,8 billion). Slightly less, 1,9 billion, earned China on arms exports.
Army equipment
Regardless of the complicated relations of the Ministry of Defense of the Russian Federation with its military-industrial complex, the demand on the world market (not only for Russian equipment) is growing noticeably. At first, the Russians feared that changes in the distribution of political forces in North Africa could have a negative impact on arms exports from Russia, and, as a result, they would need to look for new markets. However, all members of the Russian government during their official visits abroad are lobbying in favor of the domestic defense industry. Suffice it to recall last year’s concept of Vladimir Putin, according to which about 2020 billions of dollars should be spent on the modernization of the army before 700.
Many Russian enterprises continue to supply their products to markets that were conquered during Soviet times. The situation changed in 2011, when Moscow adopted the State Armaments Program until 2020 (17 trillions of rubles). Under this program, the army is allowed not only to use the Russian military-industrial complex, but also to look for suppliers abroad. The Russian military industry followed with concern the actions of the former defense minister, Anatoly Serdyukov, who redirected logistics to purchase equipment abroad (in France and Italy). The idea of modernizing and rearming the army for 700 billion dollars performed by Serdyukov in the ruling circles was perceived not too favorably, which led to his resignation. There were problems with the implementation of foreign contracts.
Lobby of Lavrov
Russian Foreign Minister Sergei Lavrov began his African tour with Algeria. On February 11, he met with the head of Algerian diplomacy, Mourad Medelci and President Abdelaziz Bouteflika. The talks concerned the cooperation of the two countries in the military-technical, scientific and humanitarian spheres (the following stages of Lavrov's visit covered, in particular, Mozambique, South Africa and Guinea). Deputy Prime Minister Dmitry Rogozin assured (February 5) that Russia will fulfill all its obligations under the contract with France regarding the purchase of Mistral-type amphibious ships. He also stated that all problems associated with this contract would be discussed at bilateral consultations. Rogozin accused the media of distorting his previous statements on this topic. According to the press, Rogozin allegedly said that Russia does not produce fuel and lubricants and fuels suitable for Mistral, which may complicate their operation. Earlier, he also stated that these ships are not suitable for the Russian climate (the purchase agreement was signed in June 2011 of the year, when Serdyukov was the Minister of Defense). The contract value is about 1,2 billion dollars.
Italians in Russia
One of the following was a contract with the Italians for the supply of armored vehicles from the Italian manufacturer Iveco LMV M65. It is planned that the Russians will buy 1775 armored vehicles, which are supposed to be assembled at the KamAZ plant. In 2012, 57 vehicles were released and transferred to the military, which were called “Lynx”. Russia allocated about 750 million euros for this program, refusing to equip the army with the domestic GAZ-2330 "Tiger", which is produced in factories owned by Oleg Deripaska. Such armored vehicles in service with the Russian army are now about 100 units. Frustrated by the manufacturers of "Tiger" said that the defense ministry arrived irrationally, since one GAS costs about 100 thousand euros, and "Lynx" - more than 300 thousand. According to experts, the only argument in favor of the contract with the Italians is that Russia needs to make up the technological gap in the field of armaments. It was caused by insufficient research funding due to the purchase of ready-made solutions abroad.
Army puts on imports
In the next five to six years, the Russian Ministry of Defense may spend about 10 billion euros on the import of military equipment from Israel and European countries. Contracts for the supply of Israeli unmanned aircraft, the purchase of a license for aviation target detection systems (Thales and Safran) and the equipment of the “soldier of the future” created in the framework of the French program FELIN. The Rosoboronservis concern is negotiating the purchase of Italian Centauro wheeled tanks, which could become a potential competitor for the products of the Russian Uralvagonzavod.
Putin puts on domestic producers
In December, 2012, at a meeting of the Commission on military-technical cooperation with foreign states, Putin ordered to support the Russian military-industrial complex on the market of third countries. This is planned to be achieved through promotions, participation in exhibitions and forums, as well as expansion of service. If in 2011, Russia's income from the sale of weapons amounted to 13,2 billion dollars, in 2012 it increased to the number in 15 billions. The Russians managed to sign contracts for the supply of not only traditional equipment, but also, in particular, helicopters (Iraq, China, Ghana, USA). Of the 2012 contracts of the year, 37% accounted for aviation equipment (in 2011 - 34%), 21% - in naval equipment (in 2011 - 20%), 25% - in air defense systems (in 2011 - 20%), 10% - on armaments of ground forces (in 2011 - 21%). The partners have not changed much - these are India, Algeria, and Vietnam. Iran has become a new market with contracts for the supply of Russian equipment by about 4,2 billion dollars (first of all - helicopters).
Tanks for export
Over the past 20 years, Russia has exported two thousand tanks to 19 countries of the world. The following 200 units will be sold in 2013-2015's. Uralvagonzavod occupies a leading position in the export of tanks, producing and supplying 1300 tanks to customers under long-term contracts. In second place is the Omsk Transport Engineering Plant, whose products are mainly filled with military warehouses. 709 machines of less modern models T-62 and T-72 were sent for export. Under contracts, Russian tanks were sent to the markets: India (2001-2002 year - 557 units T-90С), Iran (1993-2000 year - 426 units T-72С), Algeria (195 units T-90CA). Older models were shipped to some countries: Afghanistan bought T-2001AM55 and T-2 (total 62 pieces) in 52, Cuba in 1993 - T-72 (51 piece), Venezuela in 2011-2012 - T-72BNNNX pieces). Russia armed the army of Bulgaria (1 year - 92 units T-1996 / AK), Armenia (100 year - 72 units T-1996), Azerbaijan (64 units T-72B), Mongolia (62 year - 72 units T-2012А), Angola (50 year - 72 pieces T-1994), Uganda (30 year - 62 piece T-2011C). In the 31-90, the 1997 units of the T-2011U tanks were sold to Cyprus.
Tanks were shipped to Yemen, Oman, North Korea and Turkmenistan. In addition, Russia has signed a new contract for the supply of 900 new models of tanks to India (in the amount of 3 billion dollars). Despite this, Moscow feels that the US military industry is already breathing in the back of her head. In 2006-2009, the Americans sold more than 200 Abrams tanks worth 1,4 billion dollars. By the end of 2014, they plan to sell 300 more pieces of new machines for 3,5 billion. In third place in this ranking is Germany, which sold 2006 tanks for 2009-290 for the years (mainly Greeks and Spaniards worth 3 billion dollars). By the end of 2013, it is planned to sell another 125 machine parts for Leopard-2 for 1,3 billion. [...]
American activity
Americans are intensively looking for new markets for their equipment, while strengthening their position in their traditional markets, especially Egyptian. In Saudi Arabia, in the year 2012, the United States supplied Abrams 315 tanks. In the coming years, this market will become a field of rivalry between America and Germany, and the market of Egypt (and Iraq) is already monopolized by the Americans. The Egyptian army has a thousand American tanks and plans to buy more 125 units under the new contract. For Russian weapons, these markets are closed, the only exception is Iran, to which Russia traditionally sells helicopters.
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