"The United States is putting pressure on our partners": the head of Rostec, Sergey Chemezov, about competition, investors and sanctions

- What is the relationship between Rostec State Corporation and Arab countries in the sphere of mutual trade turnover, in the field of armaments and military technologies? What projects are currently being implemented "Rostec" in the Middle East and North Africa?

- For us, the Middle East and North of Africa is the most interesting region with which we work. About half of the volume of trade falls on these countries.

- Could you tell us in detail about the products and services of Rostec, which may become important for this regional market?

- Almost all of our military products are available in these countries. These are our airplanes, helicopters, and air defense systems.

Not so long ago, we sold our system S-400 to Turkey.

And I hope that by the end of this year we will complete all our obligations and the delivery will be completed.

- How do you assess the possibility of joint production of C-400? You have already announced this before.

- We did not say that we will fully transfer technology. We are talking about the localization of parts of production: spare parts or, perhaps, part of the missiles will be produced. After all, the creation of such a system is a very, very complicated thing. This requires a certain technical school. Unfortunately, it is not in Turkey. To take and in the open field to create a production of C-400 is unrealistic.

• Anti-aircraft missile systems S-400 "Triumph"
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• © Alexander Halperin

- It is no secret that in the past, Rostec has actively attracted private investment in strategic enterprises. We are aware of the sale of Tekhnodinamika, High-Precision Complexes, RT-Chemcomposite and other Russian holdings. What other assets are for sale? Or, on the contrary, do you want to acquire new assets?

- The first thing we sold is the Kalashnikov concern. Today it is the most modern production. They produce not only small arms for the army, but also small sports weapons, hunting weapons.

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Plus, they restored the former production. Remember, "Izhi" in the Soviet Union were sold, motorcycles? Today we have restored this production. Motorcycles, including electric shock. There is already a supply to the army, and is sold to citizens. UAVs produce various boats. They purchased a shipyard in Rybinsk, and today they are manufactured at this shipyard. By the way, Kometa, which goes to the Crimea, is produced by the Kalashnikov concern.

- Are there any other companies in which private investors are interested, including foreign ones?

- Of course. If we talk about investors, we divide them into two groups. One group is financial investors who are not involved in production management, but are interested in simply receiving dividends. And the second group is strategic investors who enter the capital, either with their assets, or with technology, or simply with money. And they are involved in production management.

If we talk about the first group, we have Arab funds, which acquired 12% together with the RDIF, 12% of Russian Helicopters. They are just like financial investors, have invested money and now receive dividends. And all the rest, as a rule, are strategic investors. And we are looking for just such more. Because they either bring their technology, give the opportunity to develop our existing production.

For example, Renault-Nissan. Renault-Nissan entered AvtoVAZ in 2006 or 2007. And today AvtoVAZ is the most modern automobile production. Produces new modern cars that compete with American, Japanese and Korean cars. And for the price they are a little smaller. And today they are in demand. And our Lada occupies 20% of the entire Russian market.

• Build new cars at the AvtoVAZ plant in Togliatti
• RIA News
• © Anar Movsumov

- What are the prospects for the participation of private investors, including from Arab countries, for example, in the holding company Helicopters of Russia or the Kalashnikov Concern, the most famous producer of Russian military products?

- We produce not only military products, but also civilian. There are helicopters for both military and civilian needs.

Our Mi-8 and Mi-17 helicopters and various modifications of these helicopters are the two most popular models all over the world.

Today they are in almost all countries. Easier to say where they are not.

- Last year you said that Rosoboronexport’s order portfolio for overseas supplies of weapons and military equipment exceeded $ 50 billion. At the same time, over the years of the company's existence, the total volume of deliveries of the corporation exceeded 150 billion dollars. What do these numbers mean to you? How do you evaluate these results?

- We started in the year 2000. The volume was less than three billion. There was a huge number of participants in the foreign trade market from Russia. Almost every company had the right to independently sell their products. Naturally, everyone fought to sell at least something - for any money, but to deliver something. The state defense order was almost zero. Therefore, the only way to survive is to sell something.

When we created Rosoboronexport as the only exporter that controlled price indicators as well, sales gradually began to grow. In 2018, Rosoboronexport sold for $ 13.74 billion. And the export package of concluded contracts is $ 51 billion with a little.

- To what extent has the success of the Russian military operation against terrorist organizations in Syria contributed to the advancement of Russian weapons? Was it an advertisement?

- One thing is to conduct tests at the site, and another thing - in real military conditions. Of course, we sent new modern equipment that needed to be tested. And right there carried out the revision.

Our designers and engineers were there and on site corrected some technical indicators. And then, when this equipment returned to Russia, the plants made changes. Today it is the most modern, most reliable military equipment in the world.

- What distinguishes you from your colleagues in the United States, Europe and NATO countries: the price of weapons, for example, or quality, or combat capabilities? What is the secret of Russian weapons?

- In terms of their technical characteristics, our weapons are not inferior to either American or European, and in some cases even better. For the price - we are cheaper. This is the first. Secondly, we never set any political conditions for the sale of weapons. This is pure commerce.

- This is, in your opinion, fair competition? Or is politics a stronger factor and plays a big role in this issue?

- Today, both the United States and West European countries are trying to use the political situation against Rosoboronexport and against exporters of our weapons. This is, in fact, unfair competition.

They use all sorts of sanctions regimes, prohibit, exert political pressure on our partners, scaring them with all sorts of sanctions and fines. After all, politics is one thing, commerce is another. It is not to be confused. But, unfortunately, the Americans and some European countries are doing just that.

- Last year you took part in the EDEX exhibition in Egypt, where, as you said earlier, new areas for cooperation opened. What can you tell about this year's participation in the IDEX exhibition, which will be held in the United Arab Emirates?

- The exhibition in the Emirates is very important for us. All arms manufacturers come to this exhibition, and buyers also come. At the exhibition, you can not only see new products, but also hold talks with potential buyers, show your equipment.

The total area of ​​our exposition is more than 1100 square meters. This is a very large platform on which about a thousand of various expositions, models, including finished products, our weapons will be placed.

- What new exhibits will you present at the exhibition and show to the audience?

- Of the new products can be called the marine "shell". This is a missile defense system that is installed on ships to protect against aerial targets. For the first time, we show the AK-15 Kalashnikov. It has already been decided that he is arming.

- How is the process of transition to an increase in the share of civilian products?

- Our defense enterprises need to have a stable production in the form of civilian products. And the president set before us the task - to achieve a share of civil products in the amount of 50% by 2030. We set ourselves a more ambitious task: to achieve this goal by 2025.

- Are there prospects for the development of relations with Arab countries in terms of civilian products?

- Of course. We talked about helicopters - we are ready to supply civilian helicopters as well. We have a modern model, the Ka-226 and the Ansat. These helicopters are in demand. They are not very big in size, but they can be quite suitable for civilian needs: in the form of air ambulance, for police needs, and so on. We deliver there not only military, but also civilian products. Our enterprises KamAZ and AvtoVAZ actively promote their products to this market.

Since 2014, the KamAZ dealership has been operating in the Emirates. We have already sold over 800 cars there. Our "Lada" is produced, we have made an assembly plant in Egypt. And today they produce Lada cars not only for themselves, but also for other nearby countries.

- Has a private investor become more interested in civilian products?

- Of course. Taking into account the current political situation, there are not very many people who want to build these military industries. And civilians, yes. At KAMAZ, we have Daimler, our partner. They own a stake of 15%. But we have created with them practically a new car, a new KamAZ cabin.

This is a modern car. And apparently it is not at all different from Mercedes or Scania, Volvo, Man. And as for the technical characteristics, if we talk about “Dakar” (race. - RT ), it is clear that our car is better.

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- Despite the differences that we are seeing today, what are the prospects for attracting investors and the private sector to the Russian market? Do they really show interest in this market today?

- Those who came, they do not leave. Even the Americans. At VSMPO, Avisma is the largest manufacturer of titanium products in the world - there are two joint ventures with them. Both companies are 50 to 50. One company is engaged in the processing and production of almost finished products that are immediately shipped to Seattle. And the second company is engaged in the creation of the most modern alloys.

Already created three alloy, which has no analogues in the world. And we equally own intellectual property. And there are a lot of such interested partners - partners who are ready to create modern products together with us that would be in demand, would be competitive, and would be the very “top” ones.