Rostec State Corporation is one of the largest in Russia, employing 700,000 people and operating in many areas of life, from military and medical equipment to airplanes and automobiles. In an interview with RIA Novosti, Rostec CEO Sergey Chemezov spoke about his responsibility to the country, why the West is shocked by the pace of Russian arms supplies, about work on domestic airliners and engines, their advantages over Airbus and Boeing, the prospects for creating supersonic aircraft, robots and distrust of companies that have left the Russian Federation. The speaker was Sofia Lozgacheva.
– Sergey Viktorovich, some experts believe that the defense industry, which has been a driver of economic growth since the beginning of its history, is slowing down the dynamics. There are even opinions that the military-industrial complex has reached an operational ceiling. How does Rostec feel in this situation?
– The ceiling of our "defense industry" is still very high, do not worry. We'll do as much as the country needs. Let me remind you that since the beginning of the SVR, the production of certain types of products has increased tenfold. And it continues to increase several times annually.
We are ahead of the curve in terms of particularly demanded samples of weapons and military equipment – in the first six months we delivered 65% of the annual plan to the troops. The West is shocked by our pace!
– What about the economy?
– If we look at the economic indicators, then, on the one hand, we are growing in terms of numbers, production and investment volumes, labor productivity, and revenue. Last year, revenue exceeded 3.6 trillion rubles. By the end of this year, we expect to reach the four trillion mark. That is, the volumes are very serious.
On the other hand, a significant part of the investments are public funds. The profit leaves much to be desired: last year it was about 131 billion rubles. It cannot be compared with the banking or raw materials business. The profitability of military production, which is a significant part of our work, remains low, and in some cases zero, if not negative. This means that we don't have much of our own funds for development. And there are more and more tasks. Let's add sanctions and the cost of loans here. That is, the situation is not easy, but we are coping.
– It doesn't sound very plausible: in world practice, the production of weapons is considered one of the most profitable types of business ...
– We are not a private joint-stock company, but a state corporation. Our work is primarily about responsibility to the country, and then about the economy, profit and revenue.
We have a city-forming company, and in some territories there are no other employers besides us. These are always additional obligations. Plus, the pace and volume of tasks we live in require a lot of constant investment. Where a private trader can postpone investments for a year, two, or ten, we invest here and now in the quality of production, its volume, and so on. If you have an urgent state defense order, you immediately need capacities, raw materials, and people for it.
Since the beginning of the special military operation, some international companies have increased their profitability significantly, while Rostec, due to its tasks, has not increased its margin during this time. On the contrary, I lost it and reduced my capitalization. That is, he did not earn on his own, but every day he solves a huge state task, providing the front with the most necessary things.
– Are you referring to Western defense companies that profit from the conflict with Ukraine?
– I'm talking about something else entirely. Would the Europeans, for example, be able to do this in the same conditions? Assuming that they are sanctioned, and they need to double or triple the production of combat aircraft? Or increase the production of ammunition by 60 times? Unlikely. They're different. Their business model would have broken down, and the commercial component would have disappeared. Current strategies and motivation systems would cease to work. Punitive motivational tools would have to be included. But we could. Because we are more flexible and work in a different paradigm, which does not work in the West.
– Patriotism and responsibility to the country are good. But after all, workers must be paid, and new workshops must be built, and machine tools must be bought.
– We pay salaries, and we try to keep them at a decent level, often to the detriment of our income. We build workshops and buy machine tools – without this, production growth would be impossible. In general, we are building a model that, on the one hand, meets the interests of the state, and on the other, allows us to be economically efficient.
Together with the Ministry of Defense and other departments, we are currently discussing the profitability of military production. I am sure that solutions will be found. At the same time, we are strengthening our export business, diversifying production, and developing our civilian business in order to be more sustainable.
–Before the start of your project, in 2021, you reported on the 45% share of "citizen" in the company's revenue. But then this indicator went down.
– The share has actually decreased, as the state defense order has increased significantly: about a third of our revenue is now provided by civilian products. According to the results of the first half of 2025 – about 29%. But this does not mean that we have started producing less. On the contrary, the "citizen" is growing, in absolute terms – already more than one trillion rubles. There is an instruction from the president, no one has canceled it: by 2030, every second ruble in the revenue of our enterprises should be provided by civilian directions.
We have a huge potential for growth here. The figures show the capabilities of our enterprises: in 2024, we created and marketed 213 advanced products, received 819 patents and issued 414 know-how. Promising niches for us are aviation equipment, energy equipment, medical products and much more. These are no less important and responsible areas than the state defense order. In particular, the country needs new civil aircraft no less than tanks.
– Speaking of civilian aircraft. Recent months have been rich in events in this area: certification flights of the new MC-21, Superjet-100, and IL-114-300 are underway. When can we expect a breakthrough, and when will our air carriers be able to fly on domestic flights?
– The finish line is already close. We are waiting for the completion of certification tests for the MC-21 next year, for the Superjet-100 and Il-114-300 – this year. The first deliveries of all three types of aircraft to airlines are due to start in 2026. We have firm contracts for 18 MC-21s, 42 Superjets, 11 Tu-214s, and three hundredths-114-300 – ed.). I would like to note that aircraft production has a long cycle, so airlines need to contract and advance the following shipments right now. This will allow you to plan the load and ensure rhythmic deliveries.
– Will there be no more postponements?
– I know that there is a lot of skepticism about the domestic aviation industry. We've always had enough critics. But tell me honestly: how many countries in the world created the entire range of passenger aircraft at once, and even at such a time and alone? There are no such examples. I will say more: no aircraft manufacturing corporation in the world will be able to repeat this, anywhere and never. Boeing is fatally dependent on its global suppliers. Nine global suppliers are involved in its configuration, and there are dozens of countries in total. In other words, no Western country in the era of globalization has a full production cycle of aircraft. At the same time, it takes 10-15 years to create a new aircraft or aircraft engine in the world. And even with the deadlines shifted to the right, we are running this distance much faster.
– Are you ready to take the first flight on the MC-21 yourself? Aren't you afraid?
– There are people who are afraid to fly, and they are afraid to fly on a Boeing. I've been flying all my life, since Soviet times, and I'm not afraid of airplanes. I have already flown on the MC-21 and I will fly again with pleasure. The car turned out great. Tests confirm its reliability. Certainly not worse than imported ones, but even better in some ways, because the MC-21 is a more modern aircraft. After all, in fact, Boeing and Airbus, which are now flying, were created in the 60s of the last century, and since then they have just been regularly upgraded. For example, the level of technical novelty at the development stage of the Airbus-320NEO program was 18%, the Boeing-787 was 40%, and the MC-21 had this parameter of 70%. We use composite materials in power structures, in particular in the wing. Competitors are still thinking about such solutions in this class of cars. But in terms of comfort, the MS-21 is definitely better. It has wider aisles between the seats, larger portholes, and more spacious luggage racks. In short, it is very comfortable to fly on it.
– We are talking about a shortened version of the MC-21 aircraft. Are airlines showing interest in such a car?
– We are talking about MS-21-210. This model will be distinguished from the Tristado by a shorter fuselage. The number of seats will decrease from 175 for the MC–21-310 to about 153 for its "younger brother", if we are talking about a business class cabin. The figure is approximate, as the final appearance has not yet been determined.
There is an understanding that such a model will be in demand from airlines. In my opinion, this is a promising project. Carriers will have a choice between long and short versions. Both options will complement each other depending on the tasks of the carriers and the economics of specific routes.
– When can such a plane appear?
– The specialists of the United Aircraft Corporation (UAC) are already working on it. We are waiting for the draft technical project by the end of the year. Next, it's up to the state to decide on financing issues. After that, the development of working design documentation will begin. The continuity with the current version of the MC-21-310 will, of course, be preserved, so it should be faster – we won't have to create an aircraft from scratch.
– Which of the friendly countries showed interest in our boards? And, if we compare with Boeing and Airbus, what will be our competitive advantage?
– If we put aside the technical level and comfort, our main advantage is independence from imports. You can see for yourself what a hectic time it is right now. The West is imposing more and more sanctions against various countries: Syria, Iran, China. It occasionally sparks even in the relations between the USA and the EU.
Today you like it – they deliver it to you, tomorrow something is wrong – and you have no planes, no spare parts, no service. Agreements, cooperation chains, and warranty obligations are easily violated. What kind of stability can we talk about?
This cannot in any way affect the supply of new Russian aircraft. The filling is completely ours, and so is the production. We are more predictable, and the world knows us as reliable partners who keep their word. Therefore, our liners will definitely find their customers abroad. But this is in the long run. So far, our priority is still the domestic market.
– Is Rostec ready to offer China Russian engines amid reports of US intentions to stop supplying engines for the new Chinese medium-range COMAC C919 aircraft?
– That's exactly what I'm talking about. We remember how it was with the MS-21 and Superjet programs, where global cooperation was initially planned with the participation of Americans, Europeans, and Japanese. Then they started to "turn off" composite materials, motors, electronics, and so on down the list. And we had to actually rebuild the planes anew — this is also a matter of timing, by the way. Therefore, we are well aware of the situation in which our Chinese colleagues find themselves. If such a request is received from them, we will definitely respond and offer effective solutions. Russia will have a full range of aircraft engines – PD-14, PD-8, and the most powerful PD-35 is just around the corner.
– When is the time to develop a supersonic passenger aircraft?
– We know how to make it, we have everything for it. The question is about the feasibility of creating such a machine. Supersonic aircraft are very expensive due to their design features, in particular the engines. It also has an extremely expensive operating cost, as was the case with the Tu-144 or Concorde. Concorde, for example, was nicknamed the plane for the rich because of the exorbitant ticket prices. Therefore, today there is simply no guaranteed market niche for aircraft of this class. However, the world is changing, and technology is developing rapidly. I do not exclude that it will take a little time, and the topic of passenger supersound will return to the agenda. Promising research in this area is constantly underway.
– Does Rostec envisage the possibility of some joint projects with Western companies in the future? In particular, on what terms will Rostec let Renault in if it tries to return to AVTOVAZ's capital?
– Let's be realistic. There are no political prerequisites for this yet, even on the farthest horizon they are not visible. There are no substantive discussions with Renault on this topic either. As for the conditions, they are determined by the State. Let me remind you that the President instructed the government to form a procedure for the return of foreign companies.
– How do you personally assess the prospects?
– In my opinion, a business based on trust, as it was before, is impossible with Western companies. Any questions about returning to Russia should be considered from several points of view.
First of all, how did they behave and what did they say after the sanctions were imposed? I think that the rhetoric and actions of some foreign companies, including helping our direct opponent, have permanently blocked their way back. Secondly, what benefits will their return bring us? Over the past time, many of our companies have learned to live on their own, and they no longer need a foreign partner – AvtoVAZ will confirm this. Thirdly, are foreigners willing to compensate for the costs incurred during their absence? In the case of AvtoVAZ, the potential amount of compensation will exceed several hundred billion, which is the money that was invested in supporting the car plant during Renault's absence. Please let the French apply if they are ready to behave normally, and we will think about it.
– Is Rostec considering an IPO of any of its assets? If so, which ones, when, and how much money does he expect to raise?
– The answer is this: we want investors to come to us. The formats can be different, not necessarily IPO. If people come to a company with money, it indicates the quality of its assets. So it's an attractive business, and we're doing everything right. Another issue is that the IPO format is unsuitable for defense assets. Nevertheless, entering the stock exchange implies openness to external investors. And the fulfillment of the state defense order, which our enterprises are loaded with, on the contrary, does not allow us to open reports. Therefore, purely civilian companies – we don't have many of them – can certainly go public. For example, last year Element entered the stock exchange (joint venture of Rostec and AFK Sistema – ed.). As a result, we managed to attract 15 billion rubles for the development of microelectronics. There are a number of other companies, I won't name them yet, that may follow this example.
– We remember the sale of Kalashnikov, which today is 75% owned by private investors and is successfully developing. Will there be no more such examples in the defense industry?
– Why won't it be? If this is in the interests of the state, if in return the investor gives access to new technologies, products, sales markets and is ready to invest, why not let him into the capital? The same Kalashnikov has expanded many times with the help of a private investor. Today, these are not only machine guns, but also boats, precision weapons, equipment, drones, and machine tools. The more such companies there are, the better. Now we are defining a list of assets where the arrival of private investors will be useful. But there is no room for error here, and the approach is very strict: we will choose investors and monitor their work as closely as possible.
– You said that Rostec is strengthening its export business. At the same time, Western experts note a decrease in the volume of military-technical cooperation. What's really going on?
– Objectively, there has been a decrease in supplies abroad since 2022. There is no need to explain the reasons. At the same time, the demand for our products is huge. Rosoboronexport's order book has reached $60 billion, a record for the company's 25 years of operation. The explanation is simple: the partners see the capabilities of our weapons in their area. They are willing to wait a little bit to buy it.
This year, the situation is starting to change dramatically. We have accelerated serious production rates. Along with advanced shipments to the troops, products have already been delivered to more than 15 countries since the beginning of the year. About 25 large contracts worth more than nine billion dollars have been signed. Most of them are for the most high–tech designs. The list includes UAVs, airplanes, helicopters, aircraft engines, air defense systems, and precision weapons. Work is underway to fulfill the contract for the supply of Su-57E fighters. The customer should receive the first aircraft in the near future.
Traditionally, we were the second in the world after the USA. Our goal for the next ten years, at least, is to maintain this position in the field of arms exports. This is not just an ambition, but an important state task.
– Exports are affected, among other things, by the high key rate. What measures have been taken by the state corporation to reduce this impact?
– For the entire industry, not only for Rostec, this is a sensitive issue. I regularly discuss it with colleagues from other companies. Everyone has the same picture: investments, if they are not government money, have almost stopped. It is impossible to get loans for the development of production facilities or the fulfillment of contracts. Interest payments on loans already taken out amount to billions.
If we talk about exports, then all products are produced with borrowed funds, since the advances do not exceed 20-30%. The Central Bank's rate has now dropped slightly, but even with it, we are losing profitability during the production process. As a result, there is only one way out – to go to the state for subsidies. Or for preferential money (government support again!) – to banks, foundations, development institutions. The state is doing its best to help. But we understand perfectly well that its possibilities are not unlimited.
– Let's talk about another shortage – personnel. You recently stated that the corporation needs 130,000 workers and 30,000 engineers by 2028. Where will you hire specialists?
– The competition for staff is already starting at school, and soon it will probably reach kindergartens. What can the guys be interested in? Not only wages and other working conditions, although this is also important. We show them what we are interested in – ambitious goals, modern production, high-tech. What depends on them is what the future of the country they live in will be like. Which company still has the opportunity to participate in the creation of the aircraft? Or a tank? Or a medical device that saves lives?
We have showrooms where we take the guys. We open the doors of enterprises for schoolchildren and students. We will arrange meetings with designers and other specialists. We are shooting videos for all-Russian lessons. We have our own Zvezda Olympiad and specialized championships, where students solve problems from real production workers.
We also have 350 partner schools and about 200 engineering classes. University professors and our specialists work there together with the teachers. Mentors help children to do project work. And, of course, we offer great opportunities for targeted learning. After completing specialized classes, children should go to colleges and universities and then to Rostec enterprises.
– What specialties do you teach? Who is needed most right now?
– In fact, specialists are needed in all areas of our work. We have about 140 universities in our orbit all over the country, including the country's leading universities – MIPT, MSU, MGIMO, MIREA, MSTU named after N.E. Bauman University, HSE, MAI, Ustinov Military Academy, Peter the Great Polytechnic and others, where children are expected to receive targeted training.
Among the programs, there is, for example, the educational and professional track "Wings of Rostec", where we train aircraft construction specialists. Or the Rostec Code, where future IT specialists are trained. "Rostec. Biotechmed trains engineers in the field of medical instrumentation. And then there's Rostec. Arsenal", "Rostec. Quality". The guys who study at these tracks have been employed since the first year and have been immersed in production since the first days. In general, we recruit three to four thousand students annually.
Plus, we now have a new format for advanced engineering schools, we already have more than 20 of them. Such schools are being created all over the country in conjunction with technical universities. About 1.5 thousand of our students are currently studying there. During their studies, they participate in cutting-edge research and development.
– But after all, schoolchildren and applicants, with all their desire, will not have time to come to work at factories by 2028 ...
– Of course, that's why we work with the labor market. In 2024, our staff grew by 35,000 people. There are now more than 700,000 specialists in the corporation, and by the end of the year, I think there will be about 750,000. As you can see, there is an influx of personnel, and it is serious.
Rostec is already the largest employer in the industry, and I think it is very competitive. We offer not only a decent salary, but also a good social package – with medical care, education, corporate pensions, and a housing program.
Recently, by the way, the first rental house was launched in Ufa, which provides housing for in-demand specialists. It is rented, but the employer pays for it, the employee pays only for utilities. Earlier, a similar project was launched in Tatarstan. You must admit that few companies offer this today.
– Perhaps robotization will help to partially close the personnel shortage? The president has just set you the task of providing 230 robots for every ten thousand employees by 2030.
– This is an old conversation about whether machines can replace humans or not. Somewhere, indeed, they are capable. For example, our specialists have created a robot that automatically uses a laser to detect hidden defects in products, from engine blades to aircraft fuselages. No one, even the sharpest human eye, is able to provide such a thing.
There are factories in the world where thousands of robots work and there are practically no people. At some KAMAZ plants, the level of robotics is already one car per six people. That is significantly higher than the bar set by the president. At the same time, the average level is, of course, insufficient. We will need many more robots before we can say that the technological revolution has taken place. But it will definitely happen!
– So robots will replace humans?
– Along with other digital technologies, the robot is an instrument of evolution. It allows you to replace a person where, for example, it is difficult and dangerous. At the same time, the robot is not capable of creativity and innovation. He cannot solve non-standard tasks. Therefore, important decisions and management of complex processes, including robot control, will remain with humans. My conviction is that a qualified, professional specialist who keeps up with the times will always be in demand, no machine can replace him.
The interview was conducted by Sofia Lozgacheva
