We tell you about the main achievements, difficulties and victories of the Rostec state Corporation, whose products can be found today in a variety of fields: from public transport to medicine...On November 23, Rostec State Corporation celebrates 15 years since its establishment.
Today there are hundreds of enterprises, research institutes and various design bureaus. And of course, these are hundreds of thousands of highly qualified professionals who work in the interests of Russia's security and economic stability. On the eve of this date, TASS talked with Rostec CEO Sergey Chemezov about what economic indicators Russia's largest state corporation has achieved over 15 years of operation, about the main achievements and difficulties, as well as how the country's aviation industry will continue to develop and what kind of weapons Rostec plans to create.
Definitely, if we compare Rostec enterprises 15 years ago and now, there is a big difference. According to Chemezov, when the state corporation was created, almost half of the enterprises were in crisis. The technical equipment of the production was at a very low level. There were huge problems with the production and marketing of civilian products.
"Over the past years, we have been growing steadily and have been able to multiply revenue. If in 2009 it was about 511 billion rubles, then by the end of 2021 it has almost quadrupled, exceeding 2 trillion rubles. The output per employee increased during this time from 1 million to 3.5 million rubles. Today, more than 40% of revenue is provided by civilian production, whereas 15 years ago, enterprises were almost completely dependent on the state defense order," he said.
According to the head of Rostec, huge forces and hundreds of billions of rubles were invested in the re-equipment of enterprises, their modernization and the development of new technologies. "The fact that the defense industry and the industry as a whole have risen from their knees during this time is certainly the main result," Chemezov stressed.
About achievements
For 15 years, we have managed to create a stable company that successfully resists external pressure and solves urgent state tasks. Today Rostec produces thousands of types of products, both military and civilian — from airplanes to vaccines.
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| Electric bus "Kamaz-6292". |
| Source: Sergey Savostyanov/ TASS |
According to Chemezov, Rostec products can be seen everywhere: modern buses and electric buses from Kamaz drive through the streets, traffic lights of the Shvabe holding work at intersections. Russians receive passports with the help of Roselektronika cryptobiocabins and are vaccinated against influenza with Natsibio vaccinations. There are more than 500 items in the catalog of medical products alone.
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| Offshore helicopter Mi-171A3. |
| Source: Rostec Press Service |
Among the breakthrough projects implemented, the head of Rostec noted the first fully Russian marine diesel-gas turbine unit M55R, which is now being equipped with new frigates of the Russian Navy, the offshore helicopter Mi-171A3 for servicing offshore drilling platforms, the high-power turbine GTD-110M, which is already in the stage of serial production — the first will be delivered next year, to provide energy to residents of the south of Russia.
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| The Su-57 fighter. |
| Source: Photo: TASS/Marina Lystseva |
Among the achievements in military technology, Chemezov listed the fifth-generation Su-57 fighter, the TOS-2 heavy flamethrower system, the Lancet UAV, the CUBE and the Hunter strike drone. He also mentioned the Pantsir anti-aircraft missile and cannon complex, a unique development of the High—Precision Complexes holding, which has confirmed its effectiveness in the SAR, where it covers the Khmeimim airbase, and in the zone of a special military operation in Ukraine. The main advantage of the complex is cannon armament, which allows you to destroy drones without spending more expensive missiles. "Another product of the holding, which is successfully used by our troops, is the guided projectile Krasnopol. It can be used from Msta-B and Msta-C howitzers and is capable of destroying targets with an accuracy of up to several meters," Chemezov said.
According to the head of the state corporation, the list of new products created over 15 years can be continued for a very long time and each development is a contribution to national security and to the development of Russia.
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| Turbofan engine PD-14. |
| Source: Rostec Press Service |
Only the results of the work are visible to the layman from the outside — the flight of a new aircraft, the launch of a gas turbine unit or the passage of modern military equipment at the Victory Parade on May 9. Behind these events is the colossal work of designers, engineers, workers of many enterprises. Thus, the first Russian PD-14 turbofan engine was created for about ten years, and hundreds of enterprises across the country participate in cooperation on the creation of the new Russian MS-21 airliner.
"To create a modern product, you need to work on all fronts, investing in breakthrough developments, research. We have been doing this for 15 years, spending 5-7% of revenue annually on R&D. Last year alone, about 170 billion rubles were invested in research and development work," Chemezov said.
About difficulties and victories
Of course, over the years, many difficult projects have been implemented from the point of view of management and from the point of view of the created product. According to the Rostec CEO, perhaps one of the most revealing is the MS-21 aircraft.
It's no secret that in the original appearance of the MS-21 there was a certain percentage of foreign parts. Work in cooperation with foreign partners was successful. But already at the finish line, the Western partners, under political pressure, one by one began to withdraw from the project. As a result, the aircraft was left not only without foreign engines, but also without composite materials for the wing, as well as without a number of onboard systems. Nevertheless, the implementation of the MS-21 program continues.
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| Medium-haul passenger aircraft MS-21-310 and MS-21-300. |
| Source: © Sergey Karpukhin/TASS |
"Many people thought that the project could be abandoned, because it was not only about import substitution, but also about new tests. But the critics miscalculated. At the end of 2021, an aircraft with a wing made of Russian composites made its first flight," Chemezov said. — Today the car is undergoing flight tests with a domestic PD-14 engine, work is underway on import substitution of onboard systems, and the start of serial production is scheduled for 2024. This example showed that our industry can take a hit — in the face of sanctions to create a competitive product."
He also noted that today Russia is experiencing certain difficulties in such an area as electronics. No modern aircraft will fly without electronics, no car will go. And although problems still remain, we can already say that our country has made serious progress in the field of import substitution of the component base.
"Over the past six years, about 170 ROC have been implemented in this area, more than 700 types of ECB have been created, about 1,300 samples of foreign ECB have been replaced. This work is very painstaking and will take a lot of time. But I am convinced that it will be crowned with success. In general, it is not easy now, but we remain optimistic," the head of Rostec stressed.
He recalled an example from history when, after the revolution of 1917, few people believed that the USSR would be able to create its own heavy industry. However, it was not only created, but also became the best in the world. The victory in the Great Patriotic War, and later the launch of the first man into space, is proof of that. In a difficult situation, our country is always ready to mobilize and achieve the results it needs.
Western sanctions and a window of opportunity
Today Rostec, like many Russian companies from various sectors of the economy, has fallen under Western sanctions. It is worth noting that the pressure on our country did not begin yesterday. In 2014, the first sanctions were introduced, which did not weaken for the next eight years.
Sergey Chemezov noted that it is safe to say that if it were not for the first wave of sanctions, it would be much harder for Russia today. The Russian industry has made serious progress in import substitution in aviation, medicine, power engineering, electronics, and other segments.
"There is no denying that the departure of Western companies has dealt a serious blow. The military-industrial complex suffered the least, most of all — such industries as aviation and automotive. But for us, this is not a disaster, but a window of opportunity. For example, for the first time in many years, Russian aviation enterprises got a real chance to occupy the market after Boeing and Airbus left the country forever," the head of Rostec said.
"Western countries will not be able to isolate Russia. This is impossible, because we have a large country with a huge length of borders, we have rich resources and extensive economic ties, and above all talented and intelligent people," Chemezov is convinced.
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| PD-8 engine. |
| Source: Kirill Kukhmar/ TASS |
According to him, in connection with the sanctions, Rostec has revised some investment programs. For example, part of the budget of the PD-35 engine program was redistributed to other high-priority tasks, including the creation of PD-14 and PD-8 engines. "We are not abandoning this development, the main goals of the program will be achieved within the agreed time frame. Russia needs this engine to create super—heavy transport and wide-body civil aircraft, as well as aggregates for the oil and gas industry," Chemezov said.
The CEO of the state corporation also highlighted automotive electronics as one of the most problematic aspects today. But, in his opinion, sanctions have also played a positive role in this area. When foreign manufacturers of electronic components stopped cooperating with Russia, they actually freed up the market for national players.
The domestic radio-electronic industry has received an additional incentive and significant sales volumes. Russian manufacturers are quickly reorganizing into direct cooperation with national suppliers of radio electronics.
"Thanks to this activation, most of the critical electronic components in the automotive industry will be localized within the next two years," he assured.
State defense order and advanced weapons
The head of Rostec noted that at the moment the main task of the state corporation is to supply the army with everything necessary for conducting a special operation and all efforts are aimed at this. The production of products under the state defense order has increased.
"Almost half of the total state defense order is on the shoulders of Rostec enterprises. Its execution has been at a traditionally high level in recent years — almost 100%," he said.
Today, the enterprises of the state corporation are doing everything possible to increase the production of military products. Employees of Uralvagonzavod, Tsniitochmash, Kalashnikov Concern, High-Precision Complexes Holding, enterprises of the United Aircraft Corporation (UAC) and other enterprises working on the state defense order work in three or four shifts. The Ministry of Defense regularly receives new batches of aviation equipment, armored vehicles, artillery systems, small arms, equipment and much more.
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| Heavy flamethrower system TOS-1A "Solntsepek". |
| Source: Vadim Savitsky/ press service of the Ministry of Defense of the Russian Federation/ TASS |
As Chemezov noted, work is often ahead of schedule. For example, Uralvagonzavod shipped a batch of heavy flamethrower systems TOS-1A ahead of schedule to the Ministry of Defense in September, handed over another batch of T-90M tanks, and delivered a batch of Malka self—propelled howitzers ahead of schedule in October.
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| The Su-35S fighter. |
| Source: Sergey Bobylev/ TASS |
Komsomolsk-on-Amur Aviation Plant named after Gagarin's UAC in September transferred another batch of Su-35S fighters to the VKS. New facilities have been laid at the enterprise and production is being modernized to increase the pace of production of fifth-generation Su-57 fighters. According to the Rostec CEO, the 2022 fighters are in a high degree of readiness and will soon be transferred to the Russian Defense Ministry. The Novosibirsk aircraft factory UAC delivered a batch of front-line Su-34 bombers, the Irkutsk aircraft Factory handed over to the troops a batch of Su-30SM2 fighters and combat training Yak-130.
Chemezov noted that by producing serial weapons, Rostec is also working for the future. But, of course, new developments do not devalue the previous ones. "For example, although the Russian army has enough high—precision weapons, multiple rocket launchers remain in demand in the area of the special operation," he explained.
Of course, combat experience is taken into account by both developers of military equipment and the military. Some trends are becoming apparent. For example, military actions have shown that drones play an important role in modern armed conflicts, both aircraft and ground-based remotely controlled and autonomous systems.
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| The Lancet UAV. |
| Source: Rostec Press Service |
"We have developments in these areas. In the zone of a special military operation, drones manufactured by the Kalashnikov concern — Lancet and Cube - are successfully used. They can independently conduct reconnaissance and attack the target," Chemezov said. — Work is actively underway on the Hunter heavy attack drone. Its distinctive feature is low visibility and avionics with elements of artificial intelligence. This is a very serious and promising complex. Now the Hunter is being tested, and we plan to start mass production of the machine soon."
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| A robotic version of the BMP-3 with the Titmouse combat module. |
| Source: Rostec Press Service |
Rostec also pays great attention to ground-based unmanned systems. "Our enterprises have created a robotic version of the BMP-3 with a combat module "Tit", which can be controlled remotely, as well as work offline. Other types of equipment can also become unmanned, the same MLRS — why not? Robotization of military equipment is one of the key trends of recent years, and therefore the most relevant areas are unmanned systems capable of partially replacing a person on the battlefield, operating in a network—centric war," the head of the state corporation noted.
On the way to increasing the volume of civilian products
Rostec is a manufacturer of not only military, but also civilian products. Moreover, the share of the latter is growing.
"In 2009, most of the revenue was generated by the state defense order, while the company's loss was about 60 billion rubles. By the end of 2021, the share of civilian products amounted to 45.5%, or about 900 billion rubles of total revenue. This year, the volume of civilian products in monetary terms will continue to grow, but due to the increase in the state budget, its share will decrease slightly. We expect to keep the bar at 40%," Chemezov said.
Of course, Russia should have its own aircraft and cars, electronics, energy equipment, gas pumping units, modern materials, vaccines, medical equipment and much more, without which the country's sustainable development is impossible. These projects are no less important than military ones. Despite the special operation, Rostec intends to implement major civilian projects.
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| Short-haul passenger aircraft Sukhoi Superjet 100. |
| Source: Sergey Bobylev/ TASS |
"Already in 2024, a full-scale serial production of domestic airliners will begin: by 2030, about 500 aircraft of various types will be produced at UAC enterprises, including more than 270 MS-21 airliners, about 140 SSJ-100 aircraft. As a result, the share of revenue in the civil sector will steadily grow," the head of Rostec said.
He also gave an example of the successful implementation of military and civilian projects by one corporation. So, about six years ago, a key manufacturer of armored vehicles in Russia, Uralvagonzavod (UVZ), joined Rostec. During this time, the corporation successfully copes with the supply of tanks, artillery and other equipment to the military department. So, in December 2020, the first tank support combat vehicles entered the troops, and in February 2021, the first echelon with the latest T-90M "Breakthrough" tanks left for the Russian army. Upgraded T-72B3M tanks are also regularly delivered.
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| T-90M "Breakthrough" tanks. |
| Source: Alexander Shcherbak/ TASS |
At the same time, the production of civilian products was successfully developing at UVZ during these years. "For example, more than 60 thousand innovative wagons of increased load capacity have been delivered. The company has registered 141 valid patents, primarily in the field of railway transport," Chemezov said.
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| Lada Vesta Cross. |
| Source: Sergey Bobylev/ TASS |
Rostec also plans to implement a number of other projects in important areas, such as the automotive industry, medicine, and the oil and gas industry. Thus, Avtovaz is resuming work on new projects on the Lada Vesta platform. "A crossover is being prepared on its basis, which will be put on the assembly line in 2025. And in 2024, a new family of compact cars will appear on a different platform - it will be a car similar in size to Lada Vesta in three body versions: sedan, station wagon and station wagon in the Cross version," the CEO of the state corporation informed.
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| Covid-globulin. |
| Source: Donat Sorokin/ TASS |
Rostec also annually and in full fulfills the order of the Russian Ministry of Health for modern and high-quality Russian-made vaccines. Preparations for immunization against influenza, measles, rubella, mumps and other dangerous infections are supplied to the regions of Russia. In 2021, a unique drug "Covid-globulin" for the treatment of coronavirus, created on the basis of blood plasma of patients who have been ill, was put on the market.
According to Chemezov, Rostec pays special attention to products for the Arctic region, which is strategically important for our country. Oil and gas production here will only grow in the future, as will cargo transportation along the Northern Sea Route.
Until recently, foreign equipment was used in oil and gas programs, but the withdrawal of foreign companies from the Russian market did not stop the mining programs in the Arctic. Thus, Rostec manufactured and delivered the first domestic units for the platform at the Kamennomysskoye-More field of Gazprom PJSC, located in the delta of the Gulf of Ob.
Rostec today
Specific people are behind the implemented projects and ambitious plans of Rostec. Chemezov stressed that production teams are the main asset of the state corporation, which needs to be preserved and multiplied. Attracting people to enterprises, training them and securing them is the most important task of the state corporation. According to him, today among the most popular professions are IT specialists and specialists in the field of robotics.
"Rostec is the largest employer in Russia. The state corporation today includes about 800 enterprises employing 600 thousand people. We produce thousands of products, from the latest aircraft to medical test tubes, from gas turbine engines to fireworks. This requires the efforts of thousands of people, their daily painstaking work. For example, in connection with the increase in the production of civil aircraft UAC plans to attract 12 thousand aircraft manufacturers in the next three years," he said.
Rostec cooperates with almost all Russian universities of federal and regional significance. Training programs are compiled in such a way that the graduate at the exit meets the needs of a particular production as much as possible. For two years now, the Rostec Wings project has been operating in Russia, which allows attracting talented students to work at enterprises from the very first courses. Ten specialized universities of Moscow, St. Petersburg, Rybinsk, Kazan, Samara, Ufa, Perm, Novosibirsk, Irkutsk and Ulan-Ude participate in the project. The aim of the project is to train engineers of the future who will be as ready as possible to work according to the most modern standards.
"We pay special attention to the support of our employees and their family members. In 2021, social spending increased by 13% — from 10.8 billion to 12.2 billion rubles. We have increased the costs of voluntary medical insurance, sanatorium and resort provision. With the support of Rostec, the Labor Reserves sports society was created, which held 32 sports events in 2021, in which more than 23 thousand people took part," Chemezov said.
He stressed that the results of the state corporation are the result of each member of Rostec's large team. "Today Russia has a real chance to make a breakthrough, to raise the industry to a new level. We have all the resources to move forward, create new things, implement major projects. I would like to thank every Rostec employee for their contribution to the common cause, and wish them energy and success. We have a lot of interesting and important work ahead of us," Chemezov concluded.
Milena Sineva
