MOSCOW. Dec 26 (Interfax-AVN) - The Rosoboronexport state- owned arms trader has acquired the controlling interest in the Russian Insurance Center JSO, the Rosoboronexport press service reported on Wednesday.
"Acquisition of a powerful insurance resource by the state traditional forms of economic protection in export of military- and dual-purpose products with the potential of insurance reserves," the press service report reads. By doing so Rosoboronexport expands the range of its opportunities in pre- export financing of contracts, gets the right to conduct a preferential tariff policy for the defense industry and fully guarantees payment of insurance in case an insured accident happens.
The Russian Insurance Center has been a leader in the sphere of insuring defense industry and aerospace enterprises for 10 years. It has acquired licenses of the Finance Ministry and Federal Security Service allowing it to offer 60 types of insurance and work with state secrets.
The Russian committee on military and technical cooperation has put the center on the list of organizations recommended to enterprises engaged in military and technical cooperation for insurance of military-purpose cargo transportation.
Since 1996 the center has signed general insurance agreements with the leading Russian arms exporters including the MIG aircraft corporation, Machine-Building Design Bureau and Instrument-Engineering Design Bureau. It provides insurance services to over 500 enterprises of the defense and aerospace industries.
Rosoboronexport Financial Director Alexander Krivchenko was elected chairman of the center's board of directors by the meeting of the center's shareholders on Monday.
"Given the current tendency towards the growth of foreign companies' involvement in the Russian insurance business, acquisition of a controlling interest in a leading domestic insurance company by Rosoboronexport goes in line with the state economic policy," Krivchenko said.
"The Russian insurance market has got a company fully controlled by the state, which is of great importance to development of the country's defense industry and its export branch," the chairman stressed.