Russian arms exports volume to amount to $5 billion this year

MOSCOW. Nov 18 (Interfax-AVN) - The Rosoboronexport state-owned arms trader expect this year's arms exports volume to equal that of last year, which set the record for the post-Soviet period.

"We managed to achieve maximum result last year, as $5.1 billion were gained for arms supplies to the global market through Rosoboronexport. And if we take all other Russian participants in military-technical cooperation, the figure grows to $5.4 billion," Rosoboronexport Director General Sergei Chemezov told Interfax-Military News Agency on Thursday.

"We naturally do not plan to rest on the laurels. Work is underway, and contracts are getting singes. According to our forecasts, the export volume will amount to about $5 billion in 2004," he said.

According to him, Rosoboronexport supplies amounted to 95 percent of Russian arms exports last year.

"The most important thing is the military-technical cooperation system existing at the moment is aimed at economic efficiency. Of course, we still abide by political interests of this country, national security interests," Chemezov stressed.

He recalled that political reasons were the main ones in making decisions on arms exports in the Soviet time. Economic reasons were a secondary matter, he said.

"If we compare figures, armaments worth about $20 billion (a year - Interfax-AVN) were exported in the Soviet times. Most of these supplies were gratuitous, it was an open-ended debt that nobody was going to repay. The country would only get $2-5 billion in "live" money," he said.

According to Chemezov, a dramatic increase in arms and combat hardware exports should not be expected in the next few years.

"We are unlikely to have again such a dynamic growth as we have had in the past few years. (Rosoboronexport's arms exports amounted to $3.2 billion in 2001, to $4.2 billion in 2002, and to $5.1 billion in 2003 - Interfax-AVN.) Apparently we are about to reach our maximum having the current military-technical cooperation structure. In order to boost arms exports volumes, corrections must be made to the military-technical cooperation control system, and the defense industry must be restructured," he said.