Turkish march "Ukroboronprom"
Kiev wants to change the geography of arms exports
With the beginning of the political crisis in Ukraine, the country's leadership began to pay more attention to the national defense industry. The state concern Ukroboronprom was restructured, financial investments in the industry increased significantly. What has been achieved over the past six months?
Beginning with 2000, Ukraine was periodically among the top ten exporters of weapons and military equipment, and in 2012, it took the fourth position. Such results were mainly supported by the supply, repair and modernization of weapons and military equipment of Soviet manufacture. Armored vehicles, airplanes and helicopters, and artillery were in special demand. Ukraine was mainly represented on the market of developing countries, successfully competing with China in African countries.
Samples of the post-Soviet development, for example, the BTR-3 and BTR-4 family of armored personnel carriers, as well as tanks "Hold". The geography of defense supplies also expanded significantly, in particular, Thailand acquired 215 BTR-3s of several modifications and 49 main battle tanks (MBT) "Oplot", and Iraq - 450 units of military equipment, mostly armored personnel carriers of the BTR-4 family.
Hryvnia masks the decline
According to the Stockholm International Peace Research Institute SIPRI (Stockholm International Peace Research Institute), in the 2013 year, Ukraine took the 8 line in the IWT exporter rating, ahead of Italy and Israel. Ukroboronprom received almost two billion dollars during this period, while the supply of defense products accounted for more than 90 percent of this amount. The company ranked 58-th line in the world ranking of the hundred largest suppliers of weapons. However, its net profit was small - only 65 million dollars. At the end of 2013, the company had 120 thousands of employees. Compared to 2012, the position of Ukroboronprom in the rating did not change, while the amount of sales increased by 272 million. Ukraine’s share was three percent of the global supply level. The three largest importers of Ukrainian defense products are China (21%), Pakistan (8%) and Russia (7%). The sum of the actual supply of weapons and military equipment is 708 million dollars.
In 2014, Ukraine’s position in the international arms market deteriorated. In the 10 ranking of the largest countries, it dropped from the 8 position to 9, giving way to Italy. Nevertheless, the share of the country changed slightly and in the rounded indices it was the same three percent. The amount of actual shipments decreased to 664 million dollars. China is still the largest importer of Ukrainian defense products, its share has even slightly increased (22%). Russia moved up to second place (10%), and Thailand moved to third place (9%), which is probably related to the fulfillment of contracts for the supply of armored vehicles.
The profit figures for the entire 2014 of Ukroboronprom did not disclose, and the SIPRI Institute has not yet compiled a final report with such data for the past year. Concern's head Roman Romanov, speaking last October at one of the briefings, said that in the first seven months of 2014, about five billion hryvnias were received from the export of weapons and military equipment (235 million dollars at the current exchange rate). However, the SIPRI calculation method will probably give other numbers.
Thus, a preliminary conclusion can be made: the export figures of Ukrainian weapons have significantly decreased. At the same time, it is necessary to take into account that this is largely due to a significant depreciation of the hryvnia against the US dollar.
However, a serious decline was recorded in the amount of the equipment supplied. According to the State Export Control Service of Ukraine in 2013, a total of 49 main battle tanks went abroad: 20 T-72 received Sudan, 29 got the same tanks from Ethiopia. For this period, the 80 and 34XXXXXXXXXXXMXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX (XX) section for the list of X-ray Technologies, and 29S group of armored vehicles. 4 - to Nigeria (5 BTR-4). One prototype of an armored personnel carrier of an unspecified modification was acquired by Poland (apparently, it is a question of the Dozor-B BBM for testing and establishing the joint production of this technique). 42 BMP-30 was transferred to Sudan, and 3 multi-purpose tractor BTS-1B was handed over to Azerbaijan.The export of artillery to 2013 was relatively small. Five self-propelled artillery guns (SAU) 2С1 "Carnation" and five 122-mm towed guns D-30 were sent to Sudan.
In total, in the 2013 year, Ukraine transferred six combat aircraft to foreign customers: two attack aircraft Su-25 - to Niger and four more such aircraft - to Chad.
Combat helicopters were not exported during this period. One civil Mi-8 transferred to Russia.
The export of naval equipment (VMT) included the delivery of the People's Republic of China of one amphibious assault ship of an air cushion (DKVP) of the 958 project (a copy of the Russian DKVP of the 12322 project, code Zubr).
India transferred 360 missiles and launchers, another 18 units of this technology received Kazakhstan.
But the export of light and heavy rifle weapons Ukrainian production in 2013 turned out to be significant. Foreign customers became owners of 8303 pistols, in particular, these are the USA (4000 units), Germany (1412), Great Britain (1378), Canada (600), Czech Republic (500), Peru (410), Azerbaijan (3). A large number of rifles and carbines were exported. The buyers were the United States (30 000 units), Canada (19 100), Germany (9500), United Kingdom (7668), Austria (2000), Czech Republic (510), Italy (500), Moldova (15). A significant proportion of Ukrainian defense exports accounted for assault rifles / assault rifles and submachine guns. Customers include the Czech Republic (16 100 units), Ethiopia (10 000), Austria (4500), Tajikistan (2000). Manual machine guns were also in demand. Ukraine transferred 5000 to Tajikistan, 500 to Chad, 5 to Turkey.
Last year showed a sharp decline in defense supplies. Ukraine sent only 23 MBT to overseas customers. According to the relevant report of the State Export Control Service, Ethiopia received 11 T-72, Nigeria - 12 of the same tanks. Information about the modernization of combat vehicles are not listed.
In addition to tanks, Ukraine supplied a significant number of armored personnel carriers last year for export. In total, 28 BTR-3 and BTR-4 various modifications were transferred to foreign customers. In particular, 15 BTR-3-1 and 2 BTR-3М2 received Thailand, 10 BTR-4EN - Nigeria, 1 BTR-4 - USA.
The only country that went to Ukrainian artillery (six 122-mm D-30 cannons) was Nigeria.
Combat aircraft were exported to Croatia and Chad (five MiG-21 fighters, one MiG-29).
The recipients of the Ukrainian helicopters were Belarus and Nigeria (six military transport Mi-8 and two combat Mi-24В respectively).
China transferred one DKVP project 958.
Algeria received 18 missiles and launchers, the type of which is not specified in the report.
In 2014, Ukraine exported a rather large number of small arms. Pistols and revolvers went to Peru (580 units), Democratic Republic of Congo and Moldova (according to 2). Rifles and carbines - to Canada (10 400 units), United States of America (10 166), Czech Republic (5000), Uganda (3000), Georgia (100), DRC (1). The export of assault rifles and assault rifles was insignificant - only two units of this category of small arms were supplied to the DRC. The main customer of light machine guns became South Sudan, to which 830 units were transferred, and one machine gun received DRC.
Ukraine’s supply of heavy arms in the 2014 year was insignificant. South Sudan got 62 heavy machine guns, Belorussia - one ATGM, Germany - 10 man-portable anti-aircraft missile launchers.
New standards and partners
It is assumed that export figures for 2015 will be even lower due to the fact that Ukroboronprom announced about the almost complete cessation of supplies of weapons and military equipment abroad, proclaiming the priority of the domestic market.
Certain problems are also experienced by the state-owned concern. One of the most pressing is the declared transition to NATO production standards. Concern specialists together with the Ministry of Defense of Ukraine and NATO representatives developed a “roadmap” of reforming the defense standardization system for 2015 – 2018 years. The corresponding document was adopted last April at a seminar organized by the Ukraine-NATO Trust Fund on Logistics and Standardization. On the part of the alliance, it was attended by official representatives of Poland and the Czech Republic. The document spelled out a mechanism for providing assistance on the introduction of modern methods for managing the life cycle of drug products and building a system of conformity assessment of products that operates in the alliance.
The production of defense products by NATO countries is governed by the standards STANAG (STANdardization AGreement), which publishes the Brussels-based Standardization Agency of the Alliance NSA (NATO Standardization Agency) in two languages - English and French. The current director of this organization is the Lithuanian Major General Edvardas Mazeikis. Currently released about 1300 standards STANAG. For example, STANAG 4172 regulates the use of ammunition caliber 5,56x45 millimeters, and STANAG 4569 sets the levels of armor protection. The transition to this system requires significant financial resources for the technical re-equipment of enterprises, and Ukraine is unlikely to be able to allocate them for three years.
Another serious problem for Ukroboronprom is the search for foreign cooperation partners after the breakdown of military-technical cooperation with Russia. As company representatives have repeatedly stated, from July to December 2014, 20 new countries were added to the list of international partners of the concern. In particular, negotiations began on cooperation with Airbus (Airbus), Boeing (Boeing), Textron (Textron), Lockheed Martin, BAE Systems (BAE Systems) (Thales). No concrete results have yet been achieved. At the moment we are talking only about the procurement of non-lethal weapons products. The French company Thales Group (Thales Group) mainly supplies communications and electronic warfare (EW), as well as radar systems. The US Defense Technology Inc provides radar systems for counter-battery combat and reconnaissance. The American ATN Corporation (ATN Corporation) supplies night vision devices (NVD), thermal imagers and optics. There is an agreement with the American Barrett Firearms for the export of firearms, optical devices and ammunition.
At the IDEF 2015 arms exhibition in Turkey, Ukroboronprom searched for new partners for joint production of products that had not previously been produced in Ukraine. The concern planned to establish an exchange of experience with international manufacturers of military equipment and receive new orders. In April, it was announced that the Ukrainian and Turkish defense industries are launching new joint projects, in particular in space, aviation and armored themes. It is assumed that Ukrainian enterprises will be able to take part in the development of the Turkish rocket industry. Ankara proposed to draw up the project with a single framework contract that would determine the organizations involved. To date, the parties have agreed on the joint development and production of aircraft engines, including turbojets. Also, the possibility of creating a joint venture ZMKB Progress named after academician A. G. Ivchenko and the Turkish Engine Industries company was established.
The enterprises of Ukroboronprom, producing armored vehicles, can take part in the creation of the Turkish Altai MBT and in the development of various armored vehicles. Ukrainian manufacturers were also offered to join the production of radar stations, communication systems and navigation. A kind of "road map" of the Ukrainian-Turkish military-technical cooperation is contained in the memorandum of understanding, signed by the two countries in April 2015.
Canada can also be a promising partner. This country will take part in the creation of the Ukrainian reconnaissance satellite, as reported by Ukroboronprom following the results of the defense and security exhibition CANSEC 2015 held in Ottawa last May. Negotiations were also held with representatives of leading Canadian aircraft manufacturing enterprises: Bombardier, CAE, Magellan Aerospace, Bell Helicopter (MTL), Esterline CMC Electronics (Esterline CMC) Electronics.) However, the matter has not gone beyond the framework agreements.
State Enterprise "Antonov" is one of the few companies included in the SC "Ukroboronprom", which manages to relatively successfully develop cooperation with foreign partners. Currently, negotiations are underway with Poland on the design of a new An-148-300 naval patrol aircraft based on the An-family liner. An agreement was signed with Saudi Arabia to organize the production of a new transport An-132 in this country. The first flight of the jointly manufactured aircraft is scheduled for 2016. The issues of equipping the promising military transport An-178 with turbojet bypass engines CF-34 of the American company General Electric (General Electric) are being worked out, and the promising military transport An-188 may receive power plants manufactured by Pratt & Whitney ... In addition, Antonov has been successfully cooperating with China for a long time, both in the field of transport aircraft construction and in other areas.
Previously, Antonov State Enterprise was a part of the concern of the same name on a par with State Enterprise Kiev Plant Aviant, State Enterprise 410 Civil Aviation Plant, State Enterprise Novator and Kharkov State Aviation Industrial Enterprise (Kharkov State Aviation Production Enterprise). 31 in March this year, the Cabinet of Ministers of Ukraine transferred the Antonov State Enterprise to the Ukroboronprom. Some experts believe that this may adversely affect the fate of the concern itself and will affect the entire Ukrainian aircraft industry. In June, Mikhail Gvozdev was appointed acting president of the Antonov State Enterprise. Dmitry Kiva, who previously combined the posts of president and general designer of the enterprise, now serves only as the latter.
According to the Deputy Director General of Ukroboronprom, Sergey Pinkas, Ukraine is counting only on the production of military equipment in common with defense industry enterprises of Western countries. “Buying products abroad is only the first step, followed by the opportunity to organize a large-unit assembly in Ukraine,” Pinkas said at one of the briefings.
Until the cessation of export deliveries, the latest products of Ukroboronprom (in particular, modern armored vehicles) were intended for sale to foreign customers. Sergei Pinkas argues that it does not plan to rearm its national armed forces. The price of "Oplota" is about five million dollars, so it is more profitable to sell it abroad than to use it in the east of the country. Due to the proceeds, it is supposed to upgrade the obsolete MBT T-64 to the level T-64BM “Bulat”. The upgraded T-64 and T-72 are suitable for the tasks, added Pinkas in this regard, noting that the APU needs various BBMs in the first place. In the 2015 concern, the company intends to produce 40 OBT Oplot, and later on 100 – 120 tanks of this type annually.
From January to early June, "Ukroboronprom" put the APU 767 units of equipment. In particular, the army transferred 298 units of new weapons and military vehicles and 469 repaired (including 25 tanks, 128 BTR and BMP). A year earlier, Ukroboronprom produced 700 units and restored 1800 units of weapons and military equipment. Representatives of the concern previously said that the APU transferred more than 95 percent of the produced and repaired weapons, which resulted in a significant reduction in deliveries abroad. In other words, Ukraine is rapidly undermining its credibility in the international arms market by failure to fulfill its obligations and the inability in the future to maintain the status of one of the world's largest exporters. And if previously there was a risk for potential customers to receive low-quality equipment mainly already Ukrainian, and not Soviet-made, then at present the possibility of not receiving the ordered and paid weapons and military equipment at all increases several times.
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