Deputy director of the Center for Strategy and Technology Analysis Konstantin Makienko
Photo: Dmitry Lebedev
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State Defense Order Up
The Center for Strategy and Technology Analysis, an independent Russian arms export analyst, published its ranking of the largest military producers of 2006 yesterday. In spite of the fact that 60 percent of the proceeds of defense companies still comes from export, the state order and civilian production showed greater influence on the ranking toppers than in the past. Proceeds increased by 11.1 percent among the top 20 Russian defense companies last year, with some companies showing 30-50 percent growth.
Almaz-Antei, with total proceeds of 62 billion rubles, was ranked first in the list, thanks mainly to the state order for the S-400 ballistic missile system. In second place was Uralvagonzavod, which made 27 percent of its proceeds from military production, only 5 percent of which was on state order. The rest of its military production was T-90S tanks for Algeria.
The MiG Corp. received 99 percent of its proceeds from export, and Irkut 91 percent. MiG built planes for Algeria, while Irkut worked for India, Algeria and Malaysia. Northern Wharf received profit from supplying China with its second 956EM cruiser. Not all defense companies had a successful year in 2006. Sevmashpredpriyatie experienced a loss of 344 billion rubles in 2006, compared to a profit of 2 billion rubles the year before. Admiralty Wharves had a net profit of 99.2 million rubles last year, down from 1.19 billion rubles the year before.
The center predicts that Almaz-Antei will maintain its leading place, with $2.5 billion in proceeds from the state and Chinese missile orders, Irkut and Sukoi will rise with plane orders from Algeria, Venezuela, Malaysia and India. Shipbuilding will lose ground. In general, the Russian defense industry will become more independent of foreign orders in the coming years thanks to growing state orders.
www.kommersant.com
All the Article in Russian as of May 31, 2007
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