On the Record with
ANATOLY BELYANINIV, GENERAL DIRECTOR OF ROSOBORONEXPORT STATE CORP.

In November 2000, Russian President Vladimir Putin signed a decree that merged the country's two major state-owned specialized arms trading companies -- Rosvooruzhenie and Promexport -- into a single entity.

The new company, named Rosoboronexport State Corporation and headed by Andrei Belyaninov, is the largest Russian exporter of armaments and military equipment. The move was aimed at centralizing control of arms exports and improving the efficiency of one of the most powerful and profitable trade organizations in the country.

Unlike its predecessors, Rosoboronexport reports directly to the Russian Defense Ministry and to the nation's president. A special committee, headed by deputy minister Michail Dmitriev, has been formed within the Russian Ministry of Defense to coordinate defense export efforts, with the President of the Russian Federation having final say in strategic decisions. Routine activities and interaction with foreign customers are undertaken by the Rosoboronexport and other Russian defense industry companies which are authorized to deal in foreign trade on their own.

"The process of forming the corporation as a sole state intermediary in the area of military-technical cooperation is now over," Belyaninov told Show News. "We made necessary corrections in corporate strategies and major priorities of our activities. Efforts are now being undertaken aimed at elimination of the shortcomings of the past.

"As a result of all these restructuring efforts I am eager to outline that we managed completely to fulfill the contractual obligations of our predecessors for 2000, when the whole volume of military exports exceeded $3 billion," Belyaninov notes. "I am hopeful we will achieve more this year. What inspires us to think so is the fact that the Russian defense industries now have an opportunity to act as one team, not wasting funds and resources, and their marketing endeavors are streamlined by the sole state intermediary."

Rosoboronexport also aims to improve product support and after-sales services, traditionally criticized as a weak point of the Russian arms trade.

"We scrutinized carefully the experience of our predecessors and are doing our best to eliminate the bottlenecks," Belyaninov says, adding that Rosoboronexport is now proposing to its customers a "turnkey" approach to armaments supply which covers guarantee and after-guarantee servicing, life-cycle extension, expansion of combat performance and lifelong spares support.

The company has recently begun discussions with customers about the establishment of spares warehouses and service and overhaul centers, including possible joint ventures.

Rosoboronexport was charged with setting up the Russian defense industry's presence at the Paris Air Show. Under its auspices some 36 Russian defense enterprises, research centers and design bureaus are showing their products here at Le Bourget.

"We will try to expose more fully the whole range of aviation exports," Belyaninov says, highlighting the appearance at Le Bourget of the Su-30MK multi-role two-seat fighter, MiG-AT jet trainer, and the Mi-35M attack helicopter-an upgraded development of the veteran Mi-24 "Hind." According to Belyaninov, the Mi-35M's modern avionics suite -- which includes high-precision navigation and night-vision systems -- "significantly improves the killing power of the helicopter." Unlike its predecessor, the Mi-35M is able to operate and fight efficiently at night and in adverse weather.