ROSOBORONEXPORT'S HEAVY ORDERS PORTFOLIO WEIGHS $12.5 BILLION

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MOSCOW, July 6 (RIA Novosti) - Currently, Rosoboronexport's orders portfolio, in other words signed and effective contracts, amounts to $12.5 billion, Sergei Chemezov, director general of the state military equipment promoter abroad, told reporters on Tuesday.

At the same time, he pointed out that "together with the signed contracts, which had not yet come into force for some reasons, the orders portfolio would be heavier twofold."

According to the director of Russia's only state military exporter, Rosoboronexport is more effective than its predecessors (Rosoboronexport was established in 2000 by merger of Rosvooruzheniye and Promexport) and annually increases the export rates.

The armaments export amounted to $3 billion in 2000, $3,320,000,000 in 2001, $4,030,000,000 in 2002 and $5,075,000,000 in 2003. The current export volume has been achieved for the first time in the post-Soviet period. It includes only our shipments without taking into account several enterprises entitled to direct export of their military products abroad, explained Mr. Chemezov.

According to him, last year Rosoboronexport covered 95% of the total military export volume. Within the export structure 36.4% percent falls on the aviation and 10% on army materiel.

At the same time, Mr. Chemezov pointed out that Rosboronexport's sales plan for 2004 had been set at $4.1 billion ($3.5 billion in 2003).

Rosboronexport's director has no doubts that the current plan will be fulfilled, but is not sure whether the extra-plan sales volume of 2003 will be exceeded.

"Still, the plan performance is in line with last year's level or a little lower. I will not give you figures yet, but to achieve last year's level will be difficult. For us, last year was, let's say, shock work. The plan will certainly be fulfilled, but the sales volume will most likely be a bit lower," said Mr. Chemezov.

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