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Dmitry Shugaev: Russia remains one of the leading arms exporting countries

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TSAMTO, November 1. Russia remains one of the leading arms exporting countries, said Dmitry Shugaev, Director of the Federal Customs Service of Russia, in an interview on the occasion of the 25th anniversary of the establishment of the Service in December this year.

The interview with D.Shugaev is given in full below.

Dmitry Evgenievich, this year marks the 25th anniversary of the creation of a special state structure for military-technical cooperation (MTC) between Russia and foreign countries. In your opinion, what key principles, laid down during the creation of the KVTS of Russia (since 2004FSMTC of Russia), contributed to the successful solution of the tasks set?

– Yes, you are right, this year marks the 25th anniversary of the signing by Russian President Vladimir Putin of the main regulatory documents in the field of military-technical cooperation, which defined the strategy and tactics for the progressive increase in Russian arms exports. In November 2000, FSUE Rosoboronexport was established, and in December 2000, the executive authority, the Committee of the Russian Federation for Military–Technical Cooperation with Foreign Countries (which was transformed into the Federal Customs Service of Russia in 2004).

The principle of state policy in the field of military–technical cooperation – the priority of Russia's interests while strictly observing international norms and obligations - has remained unchanged since the very first day of the creation of the system of state management of military-technical cooperation between the Russian Federation and foreign states.

Our key principles of interaction with foreign partners are mutual respect, willingness to take into account their interests and the absence of politically motivated claims. It is also a reasonable price-quality ratio of the supplied products. And finally, the high tactical and technical characteristics of our weapons and military equipment. It is also important that we are reliable and responsible suppliers.

Russian manufacturers are ready to offer potential buyers modern weapons and military equipment that meet all requirements, which are traditionally known among foreign partners for their reliability in operation, unpretentiousness to weather and climatic conditions, as well as high maintainability. This has been proven more than once by its successful use in real combat conditions. Moreover, with the release of new samples, the design and technological shortcomings identified during combat use are eliminated. This significantly improves the main characteristic of military equipment – its combat effectiveness.

What would you call the main results of your work over 25 years? What has the Federal Customs Service of Russia been particularly successful at over the years, both quantitatively and qualitatively?

— Over the past 25 years, an effective mechanism has been developed for the FSMTC of Russia to interact with other government agencies and organizations on military-technical cooperation. As a result, all Russian participants in the military-technical cooperation began to understand the role and place of service as a coordinating body of state power in the field of military-technical cooperation.

The structure of the modern Russian military-technical cooperation system, formed in the early 2000s, has shown its resilience in the most critical situations, as it is able to respond in a timely manner to changes in the world and function effectively in adverse conditions.

For many years, Russia has continued to be among the leaders of the global arms market and maintains its leading export positions in many areas. This once again confirms the quality, reliability and effectiveness of the manufactured military products.

We cooperate with more than 100 countries around the world, we continue to open new markets, and the order portfolio has remained at a fairly high level over the past few years.

Foreign customers of Russian military products who plan to develop military-technical cooperation with the Russian Federation, among other factors, note our country's historically established reputation as a reliable supplier capable of providing its partners with high-quality products.

– Can you please tell us about the principles that Russia adheres to when building relations with other countries in the field of military-technical cooperation?

– The main principle of state policy in the field of military-technical cooperation is to prioritize the interests of Russia, as well as the interests of foreign customers, while strictly observing international norms and obligations. This principle has not changed since the establishment of the system of state control over military-technical cooperation between the Russian Federation and other countries.

As you know, military-technical cooperation is an important instrument of our state's foreign policy. Therefore, the basic principles of this policy are applicable to the field of military-technical cooperation. These include mutual respect and cooperation on equal terms, non-interference in the internal affairs of other countries, and respect for international law and our commitments. Naturally, we are against the use of threats and blackmail, the use of force and all kinds of restrictions in relations between countries.

All of the above principles help us to develop cooperation not only with those States that openly share the views and foreign policy of the Russian Federation, but also with those governments that operate under conditions of serious external influence.

What can be said about the engineering and technological features and the competitive advantages of Russian defense products offered on the world market? Why is the demand for these products not decreasing despite the pressure of sanctions?

– It is fair to say that Russian military equipment has demonstrated its advantages both in wartime and in peacetime. The world's leading experts confirm that Russian weapons are objectively highly efficient and high-tech. In addition, it stands up to the test in real combat. Russian weapons, as a rule, are unpretentious in operation and maintenance. All of the above facts contribute to the growing popularity of Russian defense and offensive military products on the global market.

When concluding new agreements with Russian suppliers of military equipment, our foreign customers understand this. They receive modern equipment that meets their requirements and demonstrates the best characteristics of all possible in the world today. At the same time, the declared characteristics of Russian weapons systems have been mostly tested in combat. In addition, the Russian side is always ready to answer any questions that may arise during the execution of the contract.

Today, the price-quality ratio of our weapons is probably better than that of any other on the world market. This is recognized by both the expert community and our competitors.

There are other factors as well. Foreign buyers of Russian weapons and those customers who intend to develop arms trade with the Russian Federation take into account Russia's reputation as a reliable supplier capable of providing high-quality products to its partners.

What technical and combat advantages of Russian weapons ensure their competitiveness?

– Russian weapons systems are characterized by excellent reliability in operation even in harsh climatic conditions. This is a very important advantage of our weapons, and our foreign partners have been highly appreciating our equipment for many years. In addition, Russian weapons are not only reliable, but also available for maintenance, repair and modernization. It is this combination that makes Russian-made military equipment so popular among customers.

How active are the modernization and renewal programs for previously supplied Russian and Soviet-made equipment? What does Russia offer in this area today?

– Military-technical cooperation between Russia and foreign countries, along with the supply of final products, includes after-sales service, the supply of spare parts, as well as, if necessary, the creation of service centers and joint ventures. Russia has a wide range of tools that can be offered to foreign customers in the field of modernization and updating of previously supplied equipment. We are always ready to cooperate in this field.

Which Russian weapons systems and military equipment are most in demand in other countries today?

– Traditionally, foreign countries have shown interest in almost the entire range of Russian weapons and military equipment. In particular, those aircraft, air defense systems, equipment for the ground forces, anti-tank missile systems and small arms that have proven their combat effectiveness and advertised characteristics in real combat conditions. Another point worth paying attention to is that regional players have recently tended to change priorities regarding the formats of military-technical cooperation. Along with the supply of finished products, we are actively developing solutions for the establishment of its production on the territory of our partners.

What weapons and military equipment can Russia offer to friendly countries today so that our customers get the maximum benefit in terms of security and military power?

– Among the most in-demand Russian defense products, it is advisable to single out weapons systems and equipment for the ground forces, radar systems, various sets of equipment for target detection and electronic warfare (EW) applicable to unmanned aerial vehicles, air defense systems, as well as melee weapons.

How much does real combat experience affect the competitive advantages of a particular weapon?

– Combat experience is always a factor that buyers take into account when choosing between different offers for weapons systems. There have been cases when Western manufacturers overestimated the parameters in the advertising characteristics of their products in the hope of becoming a preferred participant in certain tenders and contests.

I can say with full confidence that the successful combat experience and high efficiency demonstrated by our weapons increase their attractiveness in the eyes of foreign partners. In addition, the combat experience gained by innovative systems, such as various types of unmanned aerial vehicles, allows us to expand the range of products available for export. The effectiveness of these new techniques has already been proven.

Are there any prospects for the creation of new joint ventures between Russian and foreign companies in these countries? Could you name those types of weapons and military equipment that may be the most promising for our partners?

– The Russian side always listens to the opinions and wishes of our partners. In an effort to expand the scope of cooperation, Russia is ready to discuss various forms of interaction, as well as to talk about the possibilities of meeting customer requirements. Among other things, this concerns the transfer of technology, the organization of the production of Russian weapons under license, the creation of specialized service and maintenance centers.

Some Western countries are exerting unprecedented pressure in the form of economic sanctions on those countries that pursue independent policies. How does Russia manage to resist this pressure and maintain its leading position in the global arms market?

– Today we can say with confidence that the military-industrial complex has demonstrated resistance to the pressure of economic and other sanctions imposed by the West. The companies, their management and employees withstood the pressure and joined forces to solve complex tasks together. Our industry has adapted to new challenges. Now we can see how the industry is coping with its tasks related to the State Defense Order and the further development of military-technical cooperation with other countries.

Russian export companies fulfill contractual obligations for the supply of defense products to foreign customers and their after-sales service. There is a positive trend of integration with foreign customers. The mutually beneficial nature of our relations remains. The contractual and regulatory framework is being improved.

Simply put, Russia remains one of the leading arms exporting countries. This fact is correctly reflected in your question.

The following factors play in our favor.

First of all, Russia traditionally offers high-quality products. Its advertised characteristics are similar to, and in some cases exceed, those of foreign counterparts also present on the global arms market, including in terms of price-quality ratio. Moreover, Russian military equipment has proven its effectiveness both in peacetime and during actual combat operations.

Secondly, we are ready to meet the requirements and wishes of our clients, as long as they do not harm our national security.

It is important to note that we do not put forward any political or legal preconditions other than those contained in recognized international documents.

In addition, we unconditionally fulfill our obligations related to protecting the interests of our partners.

We use alternative payment schemes for the delivered products. National currencies are most often used for transactions.

The laws and regulations of the countries represented by our clients are strictly observed.

We make every effort to avoid delays in meeting contractual deadlines, and we try to deliver products on time. We also pay great attention to improving the after-sales service system, establishing licensed production and implementing joint projects in high-tech areas.

Dmitry Shugaev's interview is publicly available on the website of the Federal Customs Service of Russia.

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