Sukhoi Combat Aircraft Critical To New Russian Export Strategy

A cooperative program between Sukhoi and Rosoboronexport could lead to ex-Russia sale of between 450 and 500 Su-family fighters through 2010, says Sukhoi director general Mikhail Pogosian. It's part of what's termed a "radical" reorganization of Russian military-technical cooperation with foreign countries. Such cooperation is a top-priority task, President Vladimir Putin said in a recent address to Russia's Federal Assembly. Combat aircraft are in turn seen as the most promising area.

Aerospace thus tops the bill as officials in Russia strive to solve the most fundamental long-term economic problem facing the country-the fact that almost all of Russia's current export business is in raw materials, with extremely little benefit from the nation's highly developed technical industries.

In another analysis, Russian combat aircraft exports could total between 380 and 400 aircraft worth some $13 billion through 2010, says Alexander Simakov, director of Russia's World Arms Market Analysis Center. That would amount to a world market share of about 11%.

The Sukhoi-Rosoboronexport collaboration is expected to yield a more effective aircraft pricing policy, provide aftermarket service support for Russian aircraft, and eliminate unnecessary internal competition between production plants.

Rosoboronexport and Sukhoi also hope to step up work on a fifth-generation fighter in Russia. Organizing such an effort as early as possible will not only allow Russia to regain its status as a high-tech nation, but is necessary to maintain a position on the world fighter market in the future, the partners say. Development of such an aircraft should be conducted with a goal of achieving a reasonable trade-off between its cost and combat effectiveness and with a view to demand on the world market, they add. Off-budget financial resources will be needed, with the development program open for international collaboration.

Sukhoi's combat aircraft exports already demonstrate good growth dynamics. Su-family aircraft accounted for about half of overall Russian arms exports of $3.68 billion in 2000. During the second half of 2000 alone the contract commitments of the Sukhoi's Design Bureau and series production plants in Komsomolsk-on-Amur, Irkutsk and Novosibirsk climbed by almost $4 billion.

In the next decade Sukhoi will continue sales in its traditional markets of China and India, with Vietnam possibly becoming the third-biggest importer of Russian aircraft. South Korea and Indonesia are other good prospects in Southeast Asia, with the latter possibly taking delivery on an earlier-agreed purchase of a dozen Su-30KI fighters.

Su-family aircraft will also be marketed in Africa and the Middle East.