Dmitry Shugaev: The share of aircraft order in FSMTC portfolio exceeds 50%
The MAKS-2021 International Aviation and Space Salon is to open in Zhukovsky, Moscow Region, this Tuesday. This year's event will showcase a number of promising new military products, including the latest single-engine fighter aircraft. Dmitry Shugaev, Director of Russia's Federal Service for Military-Technical Cooperation (FSMTC), has given an interview to RIA Novosti correspondent Dmitry Reshetnikov ahead of MAKS, commenting on Russia's current niche in the international combat aircraft market, the negotiations that are to take place during the exhibition, the export prospects of Russian aircraft and drones, as well as potential contracts.
What kind of business meeting program has the FSMTC planned for the MAKS International Aviation and Space Salon? How many foreign delegations do you intend to negotiate with? Among your scheduled meetings, are there any with new partners? If so, from what regions?
Unfortunately, as you know, the pandemic is preventing the world from properly holding large-scale events, including international exhibitions, for the second year in a row. Even so, I am hoping that this iteration of MAKS will be held at the highest level, and that both Russian and foreign companies will get to showcase all of their latest products. After all, this aviation salon in Zhukovsky has, over the course of its history, earned its reputation as one of the world's best aerospace exhibitions, showing positive dynamics across multiple parameters even despite the deterioration of international relations over the recent years.
The Russian FSMTC, as well as all the parties involved in military-technical cooperation together with us, will use MAKS as a negotiations venue to its maximum capacity. We have a pretty tightly-packed schedule of presentations, meetings and discussions with heads of military and law enforcement bodies, employees of foreign ministries, and diplomatic missions. Among other negotiations, we will be meeting with delegations from China, India, Myanmar and Belarus. We are also planning to hold a series of talks with our partners from the Middle East and Central Asia, North Africa, and others during this aviation salon.
Are there any new contracts for military products that you intend to sign during MAKS-2021? What's the approximate sum?
We are constantly working on furthering our military-technical cooperation with our foreign partners. This includes drafting and signing contracts for supplying our military products, as well as repair and maintenance arrangements for the previously supplied equipment. We do have several negotiation sessions scheduled during the aviation salon, but we will be able to talk about their concrete results after the salon is over.
Is the total share of Russian aircraft exports stable right now, or is it declining?
We can say with confidence that Russia remains among the top leaders in the global military products market. Our annual military craft export amounts to about $15 billion, and aircraft traditionally dominate the overall export volume.
Going into more detail, the share of aircraft reached 50% of the Russian defense export structure in 2020. By comparison, this share was 45% in 2019 and 47% in 2018. Today, aircraft-related orders amount to more than 50% of the entire portfolio.
The prototype of Rostec's state-of-the-art single-engine fighter aircraft will definitely become the main and most eagerly awaited reveal at this MAKS salon. Is it already possible to assess its export prospects?
The newest Russian single-engine multi-mission aircraft, which will be displayed during the first day of the aviation salon, is primarily export-oriented. Its parameters will be a real breakthrough, if I do say so myself: they will include excellent flight performance, a broad range of combat and reconnaissance capabilities, the latest complex of on-board radio equipment and electronics, reduced detection by radars, and a number of other know-how. At the same time, its cost will be as competitive as possible, which is all I can say without revealing all our cards. Preliminary estimates show that this aircraft will allow us to claim a significant share of the market for single-engine 5th-generation fighter aircraft.
The MiG-35 fighter is one of the most actively promoted Russian export aircraft. As of today, how many requests have you received for this fighter, and from which regions? Is there a possibility that you and your foreign customers will sign contracts for supplying these aircraft this year and next year?
The MiG-35 really is an innovative multi-purpose craft, with all the latest technical features. In 2019-2020, the Russian FSMTC received three queries from foreign customers about this fighter. One requested a demonstration and two requested a shipment. And in 2021, the FSMTC received one query from a foreign customer: they wanted to arrange a test flight of the MiG-35 fighter, with the customer's pilot. The flight will take place at the MAKS aviation salon.
Will the MiG-35 be auctioned in India?
The MiG-35 will be taking part in an auction for supplying 110 medium-weight fighters to the Indian Air Force.
Do you plan any talks with the Turkish delegation on possible cooperation regarding the supply of Su-35 or Su-57 fighters during the MAKS salon? What other cooperation aspects are you discussing with Ankara?
Russia reaffirms its commitment to fostering cooperation with the Republic of Turkey in this particular field. We are ready to continue the relevant consultations with our Turkish partners. Should Ankara decide to purchase these aircraft, we are ready to negotiate on the matter with our Turkish colleagues.
Have there been any new requests for the Su-35 fighters at this point? How likely are new contracts to be signed for these aircraft?
The modern aircraft manufactured in Russia, including the Su-35, have proven to perform exceptionally well during the Russian Aerospace Forces operation in Syria. We regularly receive official requests for the Su-35 aircraft. For example, starting from 2019, the FSMTC has received multiple requests for these aircraft from foreign partners. Some want us to supply them, others request a demo flight or a visit to the manufacturing facility.
Are you continuing your negotiations on sending a new Su-35 shipment to China?
Our Chinese partners have not sent us any requests for additional Su-35 shipments thus far, but Russia is open to further cooperation with Beijing on the matter.
From what year will you be able to start exporting the 5th-generation Su-57 fighters? Will the export version differ from the aircraft shipped to the Russian Armed Forces?
Even though this is the latest prototype of Russian military craft, we have been getting official requests on the subject since as early as 2019. So we can see that our foreign partners are very interested in this fighter. It's still too early to talk about any specific contracts, but nonetheless, we are seeing this fighter become the center of attention. That said, we have emphasized multiple times before that our top priority is to meet our Russian customers' needs for this aircraft.
A recent announcement mentions that Russia is starting to promote the export combat version of the Orion-E drones. Which regions have ordered them?
Regarding the Orion-E drones, I can already cite specific figures. In 2019-2021, the Russian FSMTC received nine requests from foreign customers from various regions, including two for demonstrations and tests, and seven for shipping.
In addition, this MAKS salon will feature a first-ever demonstration of the export-oriented Orion-E attack drone. Previously, the only type of this drone complex available for sale was the reconnaissance version.
What share of the attack drone supply market is the Russian Federation counting on in the near future?
At present, we are observing an increasing interest toward drone procurement in the global arms market. Russia is already supplying complexes that feature small reconnaissance drones to a number of countries; we have also entered new contracts for shipping the next drone batches. In addition, we expect to enter the first contracts for the supply of our attack drones abroad in the nearest future. And in the medium term, we expect to occupy up to 10% of the global market with our reconnaissance and attack UAV. All the conditions for that have been met.
What is today's demand for the Yak-130 training and combat aircraft in the international market? Does it seem to you that it has become less popular?
Demand for the Yak-130 remains high, as in a certain segment, it is today's best offer in terms of cost-effectiveness, both in terms of pilot training and combat missions. We are currently in the process of completing a number of previously signed contracts for supplying this aircraft, with Vietnam for instance. Overall, the Yak-130 is in high demand in Southeast Asia. We have received a total of six requests for the Yak-130 starting from 2019.
The demo program at this MAKS salon will feature the first-ever showcase of the upgraded Mi-28NM helicopter. Has its export been brought up for discussion? When will you be able to sign the first solid export contract?
You are correct: the highly promising Russian Mi-28NM attack helicopter will be unveiled at MAKS this year. I hope that at the end of this aircraft's demonstration at the salon, and after an introduction to its tactical and technical capabilities, we will begin to receive requests for its supply from our foreign colleagues.
Another new product to be introduced at MAKS is the Il-112V lightweight military transport aircraft. What is your estimate of its export prospects?
We believe that the Il-112V shows a lot of promise in terms of light military transport aircraft export. But first, we will need to set up the mass production of these aircraft and meet the needs of our Russian government customer for the Il-112V. Still, an analysis of the global market needs allows us to be optimistic about the future of this aircraft, including in the former Soviet nations.
07/26/2021. RIA Novosti
