Russia

According to the official data published by the Ministry of Finance of the Russian Federation, the expenditure of the country on National Defence, in terms of absolute figures, has been constantly rising over the period 2006-2015. More specifically, since 2006, when some 10.25 Billions of current US $ were invested in the associated directions, the country’s expenditure has more than quadrupled, to reach some 47.74 Billions of current US $, in 2015.

The Russian Defence Industry, is practically self-sufficient it terms of covering the domestic Armed Forces’ needs. It produces a wide array of weapon systems, such as advanced fighter aircraft, nuclear-powered submarines, state-of-the-art armoured vehicles, highly capable air-defence systems and even long-range ballistic missiles. In fact, Russia is 2nd only to the US in terms of the variety and diversity of the arms it produces.

In certain directions, the Russian Defence industry is technologically more advanced, or at least on par, with its US and Western European counterparts (e.g. air-defence systems, 5th generation fighter aircraft, Main Battle Tanks, nuclear-powered submarines, intercontinental ballistic missiles, etc). In some other directions, further investments and research are required so as to reach the level of advancement of US, Western European and Israeli companies (e.g. C4I, UAVs, electronics/optronics).

Nevertheless, the Russian Defence Industry, in order to minimise the impact experienced as a result of dramatic changes to the country’s Defence Budget, attributable to the high fluctuations in oil prices, in recent years has managed -with considerable success-, to open up to new export markets, further to the traditional ones such as India and China. Specifically, notable export deals have been achieved in recent years by the Russian Arms Industry, to North Africa (e.g. Algeria, Egypt and Morocco), Latin America (e.g. Peru, Colombia, Brazil and Argentina) and additional Far East countries (e.g. Vietnam, Indonesia, etc), regions where typically the combination of a sufficiently high technological level, with a reasonable tag price, can outweigh any technological advantage of US or Western European competitors.

Traditionally, the Russian Defence Industry comprises of major state-owned holding companies, smaller state-controlled entities and -in recent years- some private companies which have also begun to get involved in the production and marketing of arms. Notably, the most prominent (in terms of revenues from arms sales) companies of the Russian Defence Industry are:

 Company

Key Facts

Main Aerospace & Defence Products and Services

Almaz-Antey
  • State-owned holding company
  • Ranked 11th in the SIPRI top-100 Arms Producing companies for 2014
  • Over 98,000 employees
  • Estimated 8.84 Billion USD revenues from Arms Sales (2014)
  • Land-based and Naval Air-Defence missile systems
  • Air and Ground Surveillance Radar stations
  • Automated Command & Control systems
  • Telecommunications systems
  • Air-Traffic Management systems
  • Reactors for floating nuclear heat/electric power plants

United Aircraft Corporation (UAC)
  • State-owned holding company
  • Ranked 14th in the SIPRI top-100 Arms Producing companies for 2014
  • Estimated 6.11 Billion USD revenues from Arms Sales (2014)
  • About 98,000 employees
  • Encompasses about 30 enterprises which hold the rights to world-famous brands such as Sukhoi, MiG, IL, Tu, Yak, Beriev, as well as the new SSJ 100 and MS-21 brands
  • Formally established in 2006
  • A Public Joint-Stock Company
  • Design, production, testing, operation, warranty and service maintenance of civil and military aircraft
  • Modernization, repair and disposal of aircraft
  • Training and qualification-upgrading of flight crews
  • Manufacture of civil aircraft (e.g. Sukhoi Superjet 100, MC-21, An-148, Il-96-300, Tu-214, Tu-204СМ)
  • Manufacture of military aircraft (e.g. MiG-29K/KUB, MiG-35, PAK FA (T-50), Su-27SK, Su-30MK, Su-30SM, Su-32, Su-33, Su-34, Su-35, Tu-160, Tu-22M3, Tu-95MS, Yak-130)
  • Manufacture of transport aircraft (e.g. IL-76MD-90A)
  • Manufacture of special purpose aircraft (e.g. Be-200)

United Shipbuilding Corporation (USC)
  • State-owned holding company
  • Ranked 15th in the SIPRI top-100 Arms Producing companies for 2014
  • Estimated 5.98 Billion USD revenues from Arms Sales (2014)
  • Employing more than 80,000 employees
  • Formally established in 2007
  • An Open Joint Stock Company
  • The largest shipbuilding company in Russia
  • Owns 40 shipyards, design offices and ship repair yards
  • Market research, specifications preparation, design, production planning, manufacturing, delivery, operation and disposal of military (and civil) naval vessels
  • Various types of submarines (non-nuclear, diesel-powered, midget, small, large, deep-submergence rescue vehicle)
  • Various types of warships/naval vessels (patrol ships/boats, frigates, destroyers, corvettes, (Ocean) Patrol Ships, patrol boats/craft, missile (artillery) ships/boats, minesweepers, guard ships, coast guard ships, antisubmarine ships, landing ships/crafts, escort ships, fast customs craft)

Russian Helicopters
  • State-owned holding company
  • Ranked 23rd in the SIPRI top-100 Arms Producing companies for 2014
  • Estimated 3.89 Billion USD revenues from Arms Sales (2014)
  • About 42,000 employees
  • Formally established in 2007
  • The sole Russian rotorcraft designer/ manufacturer
  • Light utility multirole helicopters (e.g. Ka-226T)
  • Attack helicopters (e.g. Mi-28NE “Night Hunter”, Mi-35M)
  • Reconnaissance and combat helicopters (e.g. Ka-52 “Alligator”)
  • Naval multirole helicopters (e.g. Ka-27)
  • Special purpose helicopter (e.g. Ka-31)
  • Transport and passenger helicopters (e.g. Mi-8/17)
  • Heavy transport helicopter (e.g. Mi-26)

United Instrument Manufacturing Corporation (UIMC)
  • State-owned holding company
  • Ranked 24th in the SIPRI top-100 Arms Producing companies for 2014
  • Estimated 3.64 Billion USD revenues from Arms Sales (2014)
  • About 40,000 employees
  • Formally established in 2014 through the merging of various companies
  • Manages 55 enterprises and research facilities
  • Research and manufacturing of various types of electronic systems
  • Radio equipment
  • Communication devices and systems (e.g. army communication systems)
  • Automated control systems (e.g. modern avionics/communication systems for the T-50 aircraft)
  • Advanced radar systems (e.g. for the A-50U and A-100 aircraft)
  • Electronic warfare systems
  • Robotic systems for advanced manufacturing
  • Cybersecurity solutions and systems

Tactical Missiles Corporation (KRTV)

 
  • State-owned holding company
  • Ranked 34th in the SIPRI top-100 Arms Producing companies for 2014
  • Estimated 2.81 Billion USD revenues from Arms Sales (2014)
  • Formally established in 2003
  • A joint stock company
  • Various Types of Air-to-Surface Guided Missiles and Missile Systems Various Types of Anti-Radar Missiles
  • Various Types of Smart Bombs
  • Various Types of Air-to-Air Missiles
  • Various Types of Target Missiles
  • Modules for UAMs
  • Airborne Systems/Equipment (e.g. Aircraft Radar Warning Receiver, Airborne Multifunctional Radar Warning, Targeting & Control System, Aerosol/Chaff Dispensing System, Chaff/Flare Dispensing System, Night Vision Goggles, Missile Ejection Rack, Lighting Equipment Set, Ground Air Conditioning Unit)
  • Sets of Torpedo Tubes for Surface Ships
  • Anti-ship/submarine Missile Systems

United Engine Corporation (UEC)
  • State-owned holding company
  • Ranked 38th in the SIPRI top-100 Arms Producing companies for 2014
  • Estimated 2.6 Billion USD revenues from Arms Sales (2014)
  • Over 80,000 employees (2009)
  • A joint stock company
  • Engines for military aircraft
  • Helicopter engines
  • Rocket engines
  • Industrial gas-turbine engines
  • Marine/naval applications engines

High Precision Systems

(“Vysokotochnye Kompleksy”)
  • State-owned holding company
  • Ranked 39th in the SIPRI top-100 Arms Producing companies for 2014
  • Estimated 2.35 Billion USD revenues from Arms Sales (2014)
  • Over 20,000 employees
  • Formally established in 2009
  • A joint stock company
  • Short range air defence systems
  • Surface-to-air missile systems
  • Shipboard anti-aircraft/air-defence missiles and artillery/gun systems
  • Anti-tank guided weapon
  • Assault and guided artillery equipment systems
  • Optronic surveillance equipment
  • Target acquisition aids
  • Fire control systems
  • Rocket flame-throwers
  • Hand-held and automatic grenade launchers
  • Infantry combat and service weapons
  • Tank active protection system

KRET (Concern Radio-Electronic Technologies)
  • State-owned holding company
  • Ranked 45th in the SIPRI top-100 Arms Producing companies for 2014
  • Estimated 2.24 Billion USD revenues from Arms Sales (2014)
  • Over 54,000 employees
  • Includes more than 95 enterprises and organizations
  • Exports to 30 countries around the world
  • Formally founded in 2009
  • A joint stock company
  • Avionics, operational and tactical systems
  • Electronic warfare and intelligence equipment (EW and ELINT)
  • Friend-or-foe identification systems and equipment (IFF)
  • Radars
  • Special measuring instrumentation (MI)
  • Smart sensors and special components
  • Plugs, electric connectors, and cable products

Uralvagonzavod
  • State-owned holding company
  • Ranked 61st in the SIPRI top-100 Arms Producing companies for 2014
  • Estimated 1.45 Billion USD revenues from Arms Sales (2014)
  • Incorporates some 20 industrial enterprises, research institutes and design offices
  • Initially founded in 1936
  • A joint stock company
  • T-90S Modernized Main battle tank
  • T-90S Third-Generation Main battle tank
  • T-72 Modernized Main battle tank
  • TERMINATOR/BMPT and TERMINATOR 2/ BMPT-72 Fire Support Combat Vehicles
  • IMR-3MA Obstacle remover
  • BMR-3M Armoured deminer
  • BREM-1M Armoured recovery vehicle
  • TBS-86 Tank dozer
  • ATOM Armoured Modular Vehicle BMP
  • Various Railway and Land Utility Vehicles

RTI Systems
  • Largest privately-owned Russian holding company in the defence sector
  • Ranked 91st in the SIPRI top-100 Arms Producing companies for 2014
  • Estimated 0.84 Billion USD revenues from Arms Sales (2014)
  • Over 15,000 employees
  • More than 60 clients abroad
  • Voronezh prefabricated radar stations
  • Over-the-horizon surface-wave and sky-wave radars
  • Radio-electronic systems for space control
  • High-speed wideband lines for network-centred control systems
  • Integrated information control and security systems
  • Crisis management systems for operators of strategic facilities, law enforcement agencies and critical infrastructure
  • Microelectronics/nanoelectronics components (microchips, industrial microcircuits), RFID cards and tags
  • Research, design and development work
  • Associated maintenance services

Other major Russian Defence Industry companies (again in terms of revenues from arms sales), include:

  • Sukhoi (a state-controlled United Aircraft Corp. subsidiary), with some 2.24 Billion USD revenues from Arms Sales (2014).
  • Sozvezdie (a state-controlled United Instrument Manufacturing Corp. subsidiary), with some 1.27 Billion USD revenues from Arms Sales (2014).
  • Irkut (a state-controlled United Aircraft Corp. subsidiary), with some 1.24 Billion USD revenues from Arms Sales (2014).
  • UMPO (a state-controlled United Engine Corp. subsidiary), with some 1.17 Billion USD revenues from Arms Sales (2014).
  • Sevmash (a state-controlled United Shipbuilding Corp. subsidiary), with some 1.04 Billion USD revenues from Arms Sales (2014).
  • MiG (a state-controlled United Aircraft Corp. subsidiary), with some 1.02 Billion USD revenues from Arms Sales (2014).
  • Zvezdochka (a state-controlled United Shipbuilding Corp. subsidiary), with some 0.99 Billion USD revenues from Arms Sales (2014).
  • Admiralty Shipyards (a state-controlled United Shipbuilding Corp. subsidiary), with some 0.9 Billion USD revenues from Arms Sales (2014).

Some further prominent Russian Aerospace and Defence companies include:

  1. Aerospace Equipment Corporation JSC (a majority state-owned enterprise specialising in the supply and servicing/maintaining of air flight simulators, instrumentation and onboard equipment http://eng.aequipment.ru/)
  2. Almaz Shipbuilding Company OJSC (a privately-owned company specialising in the production of hovercraft, patrol boats, multi-purpose craft, high-speed motor boats - http://www.almaz.spb.ru/)
  3. Arsenal Machine Building Plant OJSC (a privately-owned company specialising in space technologies, naval gun mounts and launchers -http://www.mzarsenal.spb.ru/135.html)
  4. Aviakor JSC (a privately-owned company specialising in the construction, repairs, maintenance and supply of spare parts, for the passenger aircraft Antonov An-140 and Tupolev Tu-154 - http://www.aviacor.ru/)
  5. Degtyarev Plant OJSC (a privately-owned company specialising in infantry and gun weapons such as pistols, antitank rifles, standard machine-guns, heavy machine-guns - http://www.zid.ru/eng/company/)
  6. Gas-turbine Engineering Research and Production Centre “Salut” JSC (a state-owned company specialising in the design and development of aircraft engines - http://www.salut.ru/)
  7. KAMAZ OJSC (a state-controlled entity specialising in the design and development of heavy duty trucks - http://kamaz.ru/en/)
  8. KBP Instrument Design Bureau JSC (a state-owned company specialising in the development of weapons systems such as antitank missile systems, weapon systems for main battle tanks and lightly armoured vehicles, guided artillery projectiles and guided missile systems, air-defence systems, gun armament and associated ammunition, small arms, hunting and sporting guns - http://www.kbptula.ru/en/)
  9. Krasnogorsky Zavod JSC (also known as KMZ "ZENIT", is a majority state-owned company, subsidiary of Shvabe, specialising in optical and opto-electronic instrument engineering - http://www.shvabe.com/en/about/company/krasnogorskiy-zavod-im-s-a-zvereva/o-kompanii-kmz/)
  10. Kurganmashzavod JSC (a privately-owned company specialising in the production of Infantry Fighting Vehicles, Turrets and Training simulators - http://www.kurganmash.ru/en/)
  11. Motovilikhinskie Zavody (Motovilikha Plants) PJSC (a majority privately-owned entity specialising in field artillery guns, mine-throwers, self-propelled artillery and Multiple Launch Rocket System (MLRS) - http://eng.mzperm.ru/)
  12. MIC Mashinostroyenia JSC (a state-owned company specialising in cruise missiles and strategic missiles complexes, launch vehicles and space complexes, systems and instruments - http://www.npomash.ru/npom/en/default.htm)
  13. Khrunichev State Research and Production Space Centre (a state-owned entity specialising in the research and manufacturing of space vehicles/crafts and stations’ modules, liquid-propellant rocket engines and space communications systems)
  14. Rosatom (a state-controlled holding company, specialising in nuclear technology, the construction of nuclear power plants/reactors and nuclear weapons for defence platforms (e.g. submarines) - http://www.rosatom.ru/en/)
  15. Severnoye Design Bureau JSC (a privately-owned entity specialising in the design and  construction of warships (Destroyers, Frigates, Corvettes, Patrol boats and Landing ships) - http://www.severnoe.com/en/index.html)
  16. VSMPO-Avisma JSC (the world’s largest titanium manufacturer, acting as a supplier of related raw materials and/or forgings/parts to both Airbus and Boeing, as well as other A&D Primes - http://www.vsmpo.ru/en/)
  17. Hydromash JSC (the leading Russian company in the field of the development, manufacture and testing of landing gears and hydraulic actuators and units for aircraft - http://www.hydromash.ru/eng/)
  18. NPO Saturn JSC (a subsidiary of the United Engine Corporation (UEC), specialized in research and development, production, marketing and sales, and after-sale services of engines and power plants for military and commercial aviation, as well as naval vessels - http://www.npo-saturn.ru/?lid=48&sat=42&slang=1)

It should be further pointed-out that Rosoboronexport, part of the Russian Technologies State Corporation, is the sole Russian state intermediary agency responsible for import/export of the full range of defence and dual-use end products, technologies and services. Rosoboronexport was set up by a Presidential Decree in November of 2000, as a federal state enterprise, tasked to implement the national policy in the area of military-technical cooperation between Russia and foreign countries. Since July of 2011, Rosoboronexport has been operating as an open joint stock company.

In addition, quite notably both Boeing and Airbus source a number of parts for their latest aircraft models from Russia and have invested in related cooperations and sourcing agreements in the country. Specifically, the latter has established the Airbus Engineering Centre in Moscow (ECAR), employing some 200 engineers, which are involved in all Airbus programmes. Outfitted with state-of-the-art equipment, ECAR performs extensive work in disciplines such as fuselage structure, stress, system installation and design. Airbus continues to actively explore opportunities with the Russian aviation industry, and has completed more than 120 research and technology projects as of early 2014, with the participation of over 1,000 Russian engineers and scientists.
 
As far as the former (i.e. Boeing), the company’s cooperation with Russia dates back to the 1970s, when Boeing was a part of the historic US-Soviet space mission “Apollo-Soyuz”, when spacecraft from both countries docked in orbit. Further, in 1993, Boeing opened the Boeing Technical Research Centre (BTRC) in Moscow. Boeing cooperates with leading Russian research institutes to develop new materials for the aerospace industry. More than 600 Russian scientists and IT specialists work on Boeing contracts in flight science, titanium materials and technologies, flight safety training and IT. In addition, a Boeing Design Centre (BDC) has been established in Moscow and constitutes the largest such facility for computer-aided design of aerospace structures, outside the United States. The BDC consists of nearly 250 Boeing direct employees, managing a team of 1,200 contract engineers from Russian aerospace companies, such as Ilyushin, Sukhoi Aviation and the Khrunichev State Research and Production Space Centre. The BDC has participated in hundreds of projects in support of various models/configurations of the 737, 747, 767, 777 and 787 Dreamliner aircraft, as well as several hundred medium-sized and several thousand small-scale engineering projects.

Some further noteworthy investments in Russia of prominent foreign A&D Primes/OEMs in Joint Ventures with local entities, include:

  • HeliVert (http://www.helivert.aero/en/): a Russian Helicopters and AgustaWestland (now Leonardo-Finmeccanica) Joint Venture, established to set up and run a final assembly line in Russia for the AW139 intermediate medium twin helicopter. The final assembly line is aimed at primarily satisfying market requirements in Russia and CIS countries.
  • PowerJet (http://www.powerjet.aero/): a Joint Venture between SAFRAN/SNECMA and NPO Saturn JSC, in charge of all SaM146 program management tasks, encompassing design, production, marketing, sales and support. It delivers a complete SaM146 propulsion system, comprising the engine, nacelle and equipment for the Sukhoi Superjet 100 (SSJ100).
  • VolgAero: a Joint Venture between NPO Saturn JSC and the Safran Group, established so as to produce SaM 146 engine parts (blades, etc), used on the regional aircraft SSJ100-95).
  • Poluevo Invest (http://www.npo-saturn.ru/index_b3.php?sat=20&slang=1): a Joint Venture between SAFRAN/SNECMA and NPO Saturn JSC, charged with creating and operating Open-Air Test Benches (OATB) for the certification of aircraft engines.
  • Smartec: this design office was founded in 2001 as a Joint Venture between SNECMA, the majority partner with 70%, and the Russian engine-maker NPO Saturn JSC, with 30%. The company is specialized in the design of different types of propulsion systems and power generators, including aircraft engines, automotive transmissions and other rotating machinery.
  • NPO Hamilton Standard – Nauka (http://hs-nauka.ru/index_en.html): a joint venture between Hamilton Sundstrand (now UTC Aerospace Systems) and OAO NPO Nauka, established in 1995 in Moscow and specializing in development and production of heat exchangers for commercial aircraft air-conditioning systems. The heat exchangers manufactured by the company are successfully integrated in aircraft of the world’s leading manufacturers, such as Boeing, Airbus, Embraer, Bombardier and Tupolev.