• Military

• WMD Menu                           

• Introduction
• Systems
• Facilities
• Agencies
• Operations
• Countries
• Hot Documents
• News
• Reports
• Policy
• Budget
• Congress
• Links

• Intelligence
• Homeland Security
• Space

ROSOBORONEXPORT TO MONOPOLIZE ARMS TRADE

RIA Novosti

MOSCOW, February 24 (RIA Novosti)-It seems that the Tula-based Instrument Engineering Bureau, the only producer of high precision weapons in Russia, has unveiled its products at the Abu Dhabi arms fair for the last time, writes Russky Kuryer.

The bureau's export license expired in late January, but the government is in no hurry to renew it. This means that Rosoboronexport, the state's intermediary, will sell the bureau's weaponry from now on.

Other Russian exporters are also having trouble extending their licenses. Rosoboronexport's general director, Sergei Chemezov, believes that his agency alone has the right to conduct foreign-economic operations. Therefore, during a recent meeting with the president, Mr. Chemezov, said only one structure should export Russian weaponry.

However, Tula disagrees with this approach. The bureau's head, Academician Arkady Shipunov, says producers can sell their goods better than anyone else. Producers react promptly to the market situation, offering state-of-the-art systems. Intermediaries primarily think about their own profits. Moreover, Rosoboronexport does not honor its financial commitments to enterprises on time. Even though weapons have been delivered to clients, defense-industry factories do not get paid for years.

Experts believe that Rosoboronexport's attack on arms producers is because it is losing clients. The intermediary sells weapons developed about 20 years ago. Poor countries obviously buy them, but even they want more.

Experts warn that Rosoboronexport must diversify its range in the next five years or it will lose its positions on the global arms market. The Tula bureau is ready to lead the resistance to Rosoboronexport.

However, it seems that Rosoboronexport is going to win this conflict. Experts believe that President Putin trusts Mr. Chemezov, with whom he served in East Germany, more than defense-industry professionals.