Russia may take 3rd place among arms exporters - experts

MOSCOW. Jan 11 (Interfax-AVN) - Judging by 2001's results, Russia may rise to third place among arms exporting countries after the United States and Britain, leaving France behind, expert from the CAST think tank Maksim Pyadushkin has told Interfax.

The foreign currency receipts for exports of Russian arms and military technologies amounted to USD4.4bn in 2001 which is a record figure for Russia, he said. In 2000, receipts were at USD2.84bn.

Pyadushkin quoted preliminary estimates as saying that in 2001 Russian arms deliveries were worth USD3.6bn, down from USD3.68bn in 2000.

He said that the share of the Rosoboronexport state-owned arms trader in overall deliveries is estimated at USD3.2bn and its foreign currency receipts at about USD4bn.

According to Pyadushkin, last year Rosoboronexport delivered some 30 SU-30MKK fighter-bombers and 10 SU-27UB trainers to China, a batch of SU-24 Flanker frontline bombers to Algeria, over 40 T-90 tanks to India, one Zubr hover landing craft to Greece. It also upgraded a submarine of the Kilo class for the Indian Navy.

The Russian aircraft-making corporation MIG, which has the right to conduct independent foreign trade deals, delivered military hardware worth USD150m-200m in 2001, up from USD100m in 2000. Pyadushkin said it delivered MIG-29 Fulcrum air superiority fighters to Eritrea, Burma and Yemen.

The Antey consortium, another major arms trader, delivered four Tor-M1 (SA-15) short-range surface-to-air missile systems to Greece. Its overall exports are estimated at USD150m, the expert added.

The foreign currency receipts of the Tula-based Instrument Building Design Bureau in 2001 hardly exceeded USD100m. This money came from the United Arab Emirates under a 2000 contract for the Pantsyr-S1 wheeled air defense missile/gun system.

The Machine-Building Research and Production Association based in the town of Reutov, Moscow region, is believed to have made USD30-40m in 2001 under the BrahMos joint project with India to develop supersonic anti-ship cruise missiles, Pyadushkin said.

During 2001 the Kolomna Machine-Building Design Bureau, also located in the Moscow region, earned about USD30-40m in the framework of a 2000 deal for the delivery of several hundred Igla (SA-18 Grouse) portable surface-to-air missile systems, he said.

Pyadushkin said that in the next few years Russian foreign currency receipts from arms trade may be crippled by the U.S. policy of lifting restrictions on arms deliveries to several countries, including India and Yugoslavia, which are traditional importers of Russian military goods.