Rosoboronexport Explained Growing Russian Arms Exports

19.04.2012 Russia increases arms export despite a number of key regional markets lost, reports RIA Novosti referring to deputy director general of JSC Rosoboronexport Viktor Komardin at DSA-2012 exhibition.

"We have lost Central Europe and Iran, North Africa and China are next. Although those are bad news, our military export grows", he said.

According to Komardin, that is because Rosoboronexport keeps adequate prices, still lower than the world ones, and maintains well-balanced pricing policy.

Komardin said that "to promote Russian defense products at world market, Rosoboronexport annually invests $40 mln in exhibition activities, representative offices, demonstrations of equipment, development of interactive systems and so".

Price spread between analogous military products gradually tapers due to rising of domestic prices in Russia. This advantage may last several years, and then Russia will have to maintain its power at global arms market not by pricing parameters but higher quality of new products.

It should be noted that even now Russia is facing colossal pressing at world arms market from China which offers lower prices and advantageous credit lines, even granting of interest-free loans.

Speaking of "lost" regional market outlets, Russia needs to work thoroughly on their partial recovery.