Russian defence industry--a force to be reckoned with. (Defence Industry Report).

During the years that followed the demolition of the Berlin wall, few would have bet a single Rouble on the future of what would become of the Russian defence industry (Russian, of course, as opposed to Soviet government-ruled). Nearly thirteen years have lapsed since that historical night of November 1989 and, surprise! The Russian Industry has reported record sales for 2001.

One has a tendency to take `The Wall' as a reference point, but it is really the coup against Mr. Gorbachov a couple of years later that acted as the Soviet regime's coup de grace. "Right," our Western politicians then all said, "that's the end of the Cold War and we can spend our money on things other than defence systems". The past decade--yes, only ten years ago--proved how wrong they were. It may sound more remote, but the Intel 286 chip was not much older.

Ten Years Ago

The Russian defence industry has come a long way in ten years. Do you remember the weapons they had `before'? Brand new, they readily looked like 20 year-old items. Soviet personnel at exhibitions matched the wares in their "take it or leave it" philosophy. If one wanted to ask a question (this supposing an interpreter was available) regarding the performance of a system, one would hear two or three Russian words nonchalantly muttered by the official, invariably translated by the interpreter as "it-is-a-very-lethal-weapon-and-it-is -capable-of-defeating-all-Western-countermeasures".

Then came what we could possibly call the `clumsy period'. With limited means, the Eastern industry strived to adopt a `western attitude'. There were some faux pas, of course, but the fact that the Russians had stepped hard on the learning curve could be clearly seen by all.

With the turn of the millennium, the Western world could only admit that `they' were no longer so far behind. The American Industry restructured fastest (sometimes too fast), the Europeans were still, and still are, restructuring. So is the Russian industry.

Today

At an exhibition nowadays, one would hardly notice the difference between a Western or a Russian stand. Lately, even the sweetish smell of Russian tobacco has had a tendency to vanish with barely a trace.

And, not surprisingly, in most instances one can dare to speak English and expect an answer in that, or another western language.

For the author (though some may have had a different experience), the significant turning point really took place around 2001--perhaps a symbol of the new millennium. Having an appointment with Alexander Klementiev, Deputy General Director of Sukhoi at the Moscow Air Show, the author soon found himself being greeted in a private reception salon by a smiling, mid-aged executive who was `all business'. Was he putting up a show? Not a bit. We went into the heart of the matter, and particularly in areas where `it hurts', namely the appalling reputation Russian aircraft had gathered in terms of reliability, servicing and maintenance. Klementiev pulled out an extraordinarily clear `Dassault Aviation-standard' brochure from his attache case, depicting all the new maintenance procedures implemented, including the use of computerised parts monitoring and internet facilities (see Armada International 6/2002, page 23). Breathtaking.

Whilst on the subject of aviation, Klementiev mentioned last August that a major restructuring of the Russian defence industry was being planned by President Putin. Indeed, a new structure was ordered by bill earlier this year (2002) but according to latest news, this is proving more arduous an undertaking than was initially thought. In a first step, it appears that both Iapoo and Knaapo are to be privatised (with the Russian government holding a 51 per cent stake) and managed under the auspices of the Sukhoi design bureau. According to rumours, delays will stem from overwhelming bureaucracy and generation gap.

A significant and initial sign that a major dusting-off operation was underway came earlier, from the disbanding of the Rosvoorouzhenie export authority, now replaced by Rosoboronexport, which, in the year 2001, was accountable for 80 per cent of all defence equipment foreign sales. For example, the agency was responsible for the export of all Sukhoi aircraft to China and India.

MiG had much been left aside as a moribund affair in the recent past, but against all odds scored highest sales (not necessarily export, though) with an order book boosted by the equivalent of $900 million.

The MTC Reform

The World Weapons Market Analysis Centre recently reported that the Russian defence industry's score in 2001 reached a record export figure of $4.4 billion, the highest figure since 1992.

According to Armada International's representative in Russia, much of this performance must definitely be attributable to President Putin's reform of the nation's Military-Technical Cooperation (MTC) and the setting up of an ad-hoc committee within this structure. More importantly, the restructuring of the MTC has enabled the transfer of part of the President's powers to the Committee. In other words, certain responsibilities are being delegated with a view to cutting administrative corners. As a result, the committee is now able to autonomously decide on armament supplies to what is referred to as `List 1', namely countries that are not subjected to the United Nations export ban. Unsurprisingly, and as export sales figures testify, the reform has substantially cut down bureaucratic wanderings and decision-making times, a major factor of despair for any-potential buyer.

Mr. Putin has more in store, apparently. By the time these lines are printed, and as part of a number of amendments contained in the MTC reform, the President should have defined which of the companies of the Russian military industrial complex will be granted a licence for direct supply of spare parts to export customers (who have already and `legally' acquired weapon systems). No doubt, this will rejoice people like Alexander Klemetiev, for whom spares and maintenance have always been the Achilles' heel of their operations.

Key to Growth

According to MTC Committee Chairman Michail Dmitriev, five or six companies should be granted the licence, although this figure might grow by one or three at the most. Presently, Russia has `co-operation undertakings' with 67 countries, but is obviously looking forward to expanding its reach. In addition, Russia has reached an agreement to avoid export performance killing with Belarus and a similar agreement is being worked out with the Ukraine. Russia, however, wants to make it clear that it does not maintain defence or military ties with those states that are under the United Nations embargo.

Unsurprisingly, these do not necessarily match the United States list, which includes the now famous `rogue states' like Iraq or Iran. In 2001, significant Russian defence equipment sales growth areas have been South East Asia (with an emphasis on Vietnam, Myanmar and Bangladesh) and Africa, with Algeria, Zimbabwe and Sudan in particular.

It is, of course, impossible to describe the entire range and in what volumes comprises the lines of defence equipment exported by such a large country as Russia over the years. However, by picking a few examples in the various disciplines of defence, Armada has attempted here to provide a sample of Russia's recent achievements in terms of foreign sales.

Brahmos

To say that Russia has entered a new era of co-operation with its `traditional customer', India, would be an understatement. Tanks and fighter aircraft deals aside, the two nations have entered a joint venture with the development of the supersonic Brahmos anti-ship missile. Often described as a ground-up development, the missile itself is nevertheless based on the Russian Mashinostroyenia ramjet-powered Yakhont. A three-tonner, the vertical launch Brahmos will be able to deliver a 200-kilogram warhead at a range of 300 kilometres and at a speed of Mach 2.8. According to Indian officials recently met by the author, production is expected to start in 2003. Apart from ship-launched versions, mobile coastal, air-launched and submarine-launched derivatives are planned.

Sukhoi

Currently, aviation equipment accounts for 60 per cent of all Russian exports. A large proportion of this is represented by Sukhoi Su-30MKKs and MKIs. These aircraft have notably been exported to China and more lately sold to India. The latter nation is to receive no less than 140 Su-30MKIs. `Visual Splash' is probably the best way of describing Sukhoi's re-emergence in the aviation world in the early 1990s, when the firm's test pilots demonstrated how they could rewrite the laws of aerodynamics in the skies of international air shows. The heart-stopping Pugatshyov cobra figure whereby the nose of the aircraft, an Su-27 in this case (leading photo and previous page), is pulled up a full 110-degree arc--effectively forcing the aircraft to fly backwards for a split second--is an unforgettable sight. Although incredulous western experts thought at the time that the figure made no tactical sense, it certainly demonstrated the massive aeroplane's agility.

BTR-90

Very much seen by Russia as the wheeled combat vehicle of the 21st Century, the Arzamas BTR-90, seen below in model form, features an entirely new turret. Its armament comprises a stabilised 30 mm automatic gun with 7.62 mm coaxial machine gun and 30 mm grenade launcher. It can engage armoured vehicles, helicopters and field fortifications at a distance of up to 2.5 km. Incidently, four kilometre-range antitank missiles can be added. The standard fire control system is a BPKZ-42 combined day/night gunner's sight and a 1P-13 day sight for the commander. On request, a French Sat thermal imager BPK-M-type gunner sight can be installed. The BTR-90 is 8.05 metres long and 3.05 metres wide (against respectively 7.7 and 2.95 metres for the BTR-80) and tips the scales at 20,920 kilograms in full combat configuration. Despite this, it is still able to hit 100 km/hour on metalled road and can swim at a speed of nine km/hour.

877 EKM 

Under a recent memorandum of understanding, Russia would be given a contract to handle the repair and servicing work of the eight 877 EKM submarines (seen below) purchased by the Indian Navy. Also known as part of the Kilo-class of submarines, to use the better-known Nato classification, the 877 EKM is based on a design from the Rubin bureau. The original Kilo was known as the Project 636, whose hull is identical. In all, 19 Kilos are believed to have been exported since 1986 to Algeria, China, Iran, Poland, Romania and, of course, India.

RELATED ARTICLE: 2001 export distribution.

In terms of defence export figures, the aviation sector is head and shoulders above the pack with a share of 60 per cent, mostly attributable to Su-30MKKs and Su-30MKIs.

The land equipment (the bulk being made up of T-90S tanks, BTR-80 armoured vehicles and anti-tank weapons) follows with a share of around 30 per cent, whilst the naval and, oddly enough, air defence equipment sectors close the march at about ten per cent.

However, Russian experts say that this distribution is likely to change due to an expected emergence in air defence systems requirements on the one hand, and developing business in the naval area on the other. Latest agreements include two 956EM destroyers for China, the sale of the Admiral Gorshkov carrier to India, not to mention 877EKM diesel-electric submarine maintenance agreements with a number of operators. Naval export figures could thus see their cut rise to 20 or 25 per cent.

RELATED ARTICLE: T-72 upgrade.

Uralvagonzavod has developed a comprehensive suite of upgrades for the massively produced T-72 (all versions included, some 12,000 or more have been built). Starting with the hull, the Russian manufacturer offers the B-92C2 four-stroke turbocharged V12 diesel with 1000 horsepower (736 kW) on tap. Up front, an electromagnetic protection system can be mounted to detonate buried anti-tank mines. In the turret, a 125 mm 2A46M features an improved recoil damping cradle although, according to Uralvagonzavod, nothing precludes the adoption of a Nato-standard 120 mm gun. The autoloader is able to cope with an eight round-per-minute rate of fire. Both the gunner and the commander can enjoy modern vision: for the commander, a PIK-4M stabilised day/night sight that can even operate the anti-aircraft machine gun; the gunner, for his part, can use a new multiple-channel sight that allows using barrel-fired guided rounds. Finally, a thermal autotracker can be installed.

RELATED ARTICLE: Antey & Almaz share concern.

Under one of the latest restructuring measures taken in Russia, Almaz and Antey are to set up an `air defence concern'. This grouping of activities should be completed by the end of 2002 and is expected to be led by Antey, which should thus become the leader in air defence systems in Russia. In terms of exports, the Tor seen here in its latest M1 version holds some kind of record. The latest system devised by Antey, however, is the 2500. Able to intercept 2500 km-range ballistic missiles at a range of 40 kilometres, it is in service in Russia but has also been offered for export to China, India, Iraq, and South Korea.

With as many systems as are exported, upgrades also represent an important share of Antey's activities. The Osa air defence system, for example, has been exported to 26 nations since 1985, with latest sales having been made to Greece and China via the newly-formed Rosoboronexport. (Armada Archives)