Rosoboronexport Reinforcing Its Positions on Latin American Aircraft Market

The Russian state-owned arms seller Rosoboronexport, that last year reached record high arms exports (over US$ 4 billion of currency receipts), is planning to strengthen its positions on the Latin American market. Though the Latin American countries account for no more than four to five percent of the total Russian arms exports, the company intends to raise this figure primarily through increased deliveries of aircraft, armored vehicles, air defense systems and small arms. In addition, it is ready to arrange carrying out R&D on defense subjects with all countries concerned in this region.

Rosoboronexport director general Andrei Belianinov told Show News that to attain these ends the company would rely primarily on planes and helicopters making up the bulk of the Russian arms exports. In 2001, the aircraft deliveries represented 70% of the company's total exports, naval hardware represented 12%, land forces' armaments represented eight percent, with air defense systems and other military equipment making up the balance.

Despite a rather limited capacity of the military aircraft market in Latin America, the recent years saw an ever-increasing interest in Russian planes and helicopters. In this area, Russia may quite viably count on upgrade of various versions of the MiG-21, MiG-23 and Su-22 planes, which are operational with the Cuban and Peruvian Air Forces, as well as on additional deliveries of military and transport planes to Peru. Experts believe that the region's countries will take an interest in a transport/landing version of the An-38-100 multi-role aircraft whose first presentation took place at Asian Aerospace 2002 in Singapore in late February.

Sukhoi, which operates on the world market via Rosoboronexport, is taking part in a tender held by the Brazilian Air Force for the procurement of 24 supersonic strike fighters. Rosoboronexport and Sukhoi have offered the Su-35 multi-role fighter and stated their readiness to transfer the manufacturing technologies for these aircraft to Brazil, including the establishment of their co-production.

Sukhoi Su-35

During the January visit to Moscow of the Brazilian president Rosoboronexport announced the signing with the Brazilian company Avibras of a cooperation agreement whose details were not disclosed. Rosoboronexport representative merely stated that this is one of the agreements concluded by the company to "develop cooperation in the military-technical field and to further bolster the trade and economic relations between Russia and Brazil."

According to sources in the Russian defense-industry complex, the agreement means that if Sukhoi wins the tender, Aviabras will undertake to produce the Su-35 components and integrate equipment, software and armaments of these aircraft with regard to the Brazilian Air Force requirements.

Helicopters of various purposes occupy a particular niche on the Latin American market. Brazil, Venezuela, Guyana, Columbia, Cuba, Mexico, Nicaragua and Peru purchased Soviet-/Russian-built helicopters at different times. All these countries operate largely the Mi-18/Mi-17 military transport helicopters. Peru, Nicaragua and Cuba received also the Mi-24 attack helicopters. In 2000 two Mi-26 heavy lift helicopters were delivered to Mexico. Some of the Russian-made helicopters need modernization, and Rosoboronexport is ready to offer several upgrade programs, including equipping them with night vision systems and their integration with air-to-surface weapons.

A US$ 42 million contract concluded in early 1997 with Columbia for the delivery of ten Mi-17-1V versatile helicopters in 1997-98 was Russia's breakthrough into the Latin American helicopter market. Despite severe competition, Rosoboronexport managed to expand the military-technical cooperation with Columbia and other LA countries. The company's signing a new US$ 36.1 million contract with Columbia in Bogotá in 2001 to supply six Mi-17-5V helicopters became an illustration of this. Under its terms, Kazan Helicopter Plant delivered to the country three helicopters in early 2002, and another three units will be shipped to the customer in the mid-year. All the six helicopters will be fitted with night vision systems.

Now Rosoboronexport has representative offices only in two countries of the region ­ in Cuba and Peru. It is not unlikely that the company would open also a permanent office in such a strategically important country for Russia's interests as Brazil.

On the whole, according to experts, the military-technical cooperation between Russia and Latin American countries is progressing rapidly. Both sides are looking for foundations of such cooperation. Rosoboronexport, in particular, offers armaments and military hardware, spare parts, ammunition, licenses, setting up repair bases and personnel training centers. Establishing joint ventures making military products may be one of new lines in Russia's military-technical cooperation with Latin American countries. These could be assembly facilities, which will use components delivered by the Russian defense industry enterprises. Besides, Rosoboronexport is giving much attention to organizing more joint R&D works with Latin American companies on the creation of new weapons and military equipment. Trade in technologies and commercial introduction of Russian defense-industry complex's technical know-hows may be one of the most promising lines in the Russian-Latin American collaboration, whose implementation in the field of military-technical cooperation is assigned to Rosoboronexport.

Nikolai Novichkov