18 February 2013, 19:07

Russian aircraft builders successful arms traders

Russian aircraft builders successful arms traders

In 2010, Russia’s United Aircraft Building Corporation was the world’s 21st biggest arms maker. In 2011, it occupied Spot 18. In just one year, its arms sales grew by one third to $4.5bln. Its total sales amounted to $5.5nln. The statistics can be found in the latest rating tables published by the Stockholm Institute of Peace Research, or SIPRI.

Editor-in-Chief of the Natsionalnaya Oborona, or National Defence, journal Dr Igor Korotchenko attributes this success to economies and management benefits of scale:

"The Corporation came into being as a giant state-controlled holding embracing all major production and design organizations in Russia’s aircraft industry. What we observe today is the fruition of this integration process."

Dr Korotchenko again:

"The best selling item is the Sukhoi-30 jet fighter, which is in great demand in many Asia Pacific countries. Together with the Yakovlev-130 training jet and a fifth-generation jet fighter being developed jointly with India, this plane could propel the Corporation to an even higher SIPRI spot and help Russia remain the world’s second biggest arms exporter. Importantly, Russia has aircraft customers in China, Latin America and the Middle East, as well as South Asia and the Pacific Rim."

Mr Roman Gusarov is an expert of the Transport Committee of the Lower House of the Russian Parliament. He was speaking to The Voice of Russia:

"In everything that concerns the aircraft industry, Russia is still far behind what it was at the time of the Soviet Union. The potential, however, remains intact and can unfold into spectacular expansion. The only obstacle in the way is the fact that arms trade is subject to political, as well as technological and economic constraints."

Oleg Nekhai, Alexei Lyakhov
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