Rosoboronexport State Corporation
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Joint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
Rosoboronexport is the sole state intermediary agency for Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
's exports/imports of defense-related and dual use products, technologies and services. The corporation was set up by a Decree
Decree
A decree is a rule of law issued by a head of state , according to certain procedures . It has the force of law...
of the President of Russian Federation and is charged with implementation of the policy of the State in the area of military-technical cooperation between Russia and foreign countries.
The official status of Rosoboronexport guarantees the support of the Russian Government in all export operations.
The Rosoboronexport State Corporation is exclusively entitled to supply the international market the whole range of Russian armaments officially allowed for export.
Rosoboronexport is ranked among the leading operators in the international arms market. The status of a state intermediary agency provides the corporation with unique opportunities in expanding and strengthening long-term mutually beneficial cooperation with foreign partners.
Facts and figures
Rosoboronexport:- Accounts for more than 90% of Russia's annual arms sales.
- Represents intellectual and production potential of Russian Defense Industrial Complex consisting of more than 1500 research institutes, design bureaus and manufacturing plants.
- Has cooperated with more than 60 countries during its 50-year history.
- Central headquarters in MoscowMoscowMoscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
, representative offices in 44 foreign countries and in 26 major industrial regions in Russia.
Basic Trade Activities
- Export/import of military/dual use equipment and strategic raw materials.
- Logistics and maintenance, delivery of spare parts, tools and accessories, special liquids, fuels and lubricants required for proper operation of the supplied material.
- Technical assistance in construction of defense infrastructure, including arms manufacturing plants, airfields, depots, firing ranges, training centers, etc.
- Delivery of material, components, and parts for licensed arms production.
- Retrofits, upgrades and modernization of previously supplied weapon systems.
- Training of personnel in Russia and at Customer's facilities.
- Promotion of civil-purpose innovative technologies developed by the Russian defense industries.
History
Rosoboronexport is a legal successor of the state arms exporters existed in the ex-USSR and present-day Russia. A state intermediary agency in the military-technical area was first created on May 8, 1953, when the General Engineering Department within the Ministry of Internal and Foreign Trade of the USSR was founded in accordance with the decision of the Soviet Government.With the scope of military industrial complex expanding, a number of new specialized export agencies were set up. By late 1990s, there were two state intermediary companies in the country, the Rosvooruzhenie and Promexport.
On November 4, 2000, the Rosoboronexport Unitary enterprise
Unitary enterprise
A unitary enterprise is a government-owned corporation in Russia and some other post-Soviet states. Unitary enterprises are business entities that have no ownership rights to the assets they use in their operations....
was set up by Decree
Decree
A decree is a rule of law issued by a head of state , according to certain procedures . It has the force of law...
№ 1834 of the Russian President as the sole state intermediary agency for Russia's military exports/imports.
On August 4, 2006, the Bush administration
George W. Bush administration
The presidency of George W. Bush began on January 20, 2001, when he was inaugurated as the 43rd President of the United States of America. The oldest son of former president George H. W. Bush, George W...
imposed sanctions
International sanctions
International sanctions are actions taken by countries against others for political reasons, either unilaterally or multilaterally.There are several types of sanctions....
on Rosoboronexport accusing it of supplying Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
in violation of the United States Iran Nonproliferation Act of 2000
Iran Nonproliferation Act of 2000
The Iran Nonproliferation Act of 2000 is a United States Act of Congress signed into law by President Bill Clinton on March 14, 2000. The act authorizes the President of the United States to take punitive action against individuals or organizations known to be providing material aid to weapons of...
. The Russian defense ministry said the move reflected U.S. annoyance at arms sales to Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
. Rosoboronexport is now prohibited from doing business with the United States Federal Government.
On January 19, 2007, Russian President Vladimir Putin signed a decree making Rosoboronexport responsible for all arms exports.
It was reported that Rosoboronexport was to be folded into a state holding company called Russian Technology by the end of the year 2007.
On September 18, 2008 it was reported that Rosoboronexport had agreed to go ahead with the sale of advanced S-300 Russian made anti-aircraft systems to Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
in light of the news that the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
had agreed to supply Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
with GBU-39s (Small Diameter Bunker Buster Bombs)
Management
The founding director of Rosvooruzhenie, appointed in 1993, was Viktor I. Samoilov. He was followed by Aleksandr Kotelkin. Sergey ChemezovSergey Chemezov
Sergey Viktorovich Chemezov is a former KGB agent and later Russian businessman and official.In 1983–1988 he worked as an undercover KGB agent in an obscure company in Dresden, East Germany, where his neighbor was KGB officer Vladimir Putin....
was the Director General of Rosoboronexport during 2004-2007.
Sources
- David R. Stone, "Rosvooruzhenie and Russia's Return to the Global Arms Market," in Perspectives on Political and Economic Transformations after Communism (New York, 1997), pp. 77-90.