Sunday, February 12, 2012

Market Opportunities and Entry Strategies for Russia's Defense industry ....

Market Opportunities and Entry Strategies for Russia's Defense industry ....

Russia is to supply $7.7 billion worth of armaments and military equipment to India this year, according to a press release by the Centre for Analysis of World Arms Trade (CAWAT).

“This year, Russia will supply arms and military equipment worth $7.7 billion to India, about 60% of Russia’s total arms exports and 80% of India’s arms imports,” CAWAT said in the release.CAWAT attributes this breakthrough in the Russian-Indian military and technical cooperation in 2012 to supplies within the framework of several large-scale programmes (the centre calculates the value of supplies on the basis of actual deliveries). It is reported that a considerable part of the supplies will be behind the original schedule, “which will entail this impressive result in 2012.”

“The transfer of the Vikramaditya aircraft carrier to the Indian Navy in December 2012 is expected to become the biggest project in price terms. Its modernisation cost has been adjusted a few times and now totals $2.34 billion. The second-biggest delivery is the planned supply of two 11350.6 frigates worth an estimated $1 billion. In third place comes a project worth up to $920 million, according to recent reports, involving lease to India of a project 971 Nerpa nuclear submarine in January 2012,” CAWAT said.

Furthermore, on the basis of the original arms supply schedule, in 2012 Russia will hand over to India about 40 Mi-17V-5 helicopters, 21 Su-30MKI fighters (licensed assembly under a 2000 contract), 12 Su-30MKI fighters (under a 2007 contract), and nine shipboard MiG-29K/KUB fighters.

Also this year, the two countries will continue the programmes to upgrade MiG-29 fighters, BPA Tu-142 aircraft, and Mi-17 helicopters, repair type 877EKM diesel-electric submarines, and supply Ka-31 helicopters, AL-55 and TRDD-50MT engines, Mi-17 flight simulator training systems, and Club-C anti-ship missile launchers, and some other programmes, CAWAT said on its website.The centre estimates India’s arms imports in 2002–2011 at $25.65 billion and, in 2012–2016, imports are projected at $51.4 billion.“In 2012, India will retain its status as the world’s biggest importer of arms and approach the $10 billion arms import landmark (with about $9.4 billion),” according to CAWAT.

Russia’s arms exports may reach a record $14 billion in 2012, a Russian think-tank said on Friday.

Russia’s state arms exporter Rosoboronexport sold $10.7 billion worth of weaponry in 2011 under contracts with 57 countries, but this number could be readjusted to $12 bln with the addition of direct sales of spare parts by Russian arms producers.

“We are expecting Russian arms exports to surpass $14 billion in 2012,” the Center for the Analysis of Strategies and Technologies (CAST) said in a report.

“Considering the current foreign orders portfolio, which is worth $41.5 billion, Russia may maintain this level of arms exports for at least three years,” the report said.

The Moscow-based CAST is an independent, private defense industrial and foreign policy think-tank with close ties to both Rosoboronexport and senior Kremlin officials.

According to the CAST report, Russia will deliver about 50 Su-family fighters to India, Vietnam, Algeria, Indonesia and Uganda.

In addition, Russia will supply India with 10 MiG-29K naval fighters and modernize 10 MiG-29s in service with the Indian Air Force to MiG-29UPG level. Myanmar will receive 14 MiG-29 of various modifications.

Russia may also start the deliveries of 24 MiG-29M2 fighters to Syria under a 2007 contract.

Russia will deliver Pantsir-S1E air defense systems to Algeria and the United Arab Emirates, Buk-M2E air defense systems to Syria, and Tor-M2E systems to Belarus.

Venezuela will receive Russian T-72 tanks, BMP-3 infantry fighting vehicles and BTR-80A armored personnel carriers.

Major deliveries of naval equipment to India will be carried out in 2012.

Russia is expected to hand over the long-awaited Vikramaditya aircraft carrier (former Admiral Gorshkov), and deliver two Talwar class frigates and a modernized Kilo class diesel electric submarine to the Indian Navy.

1 comment:

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