OREANDA-NEWS. The Board of Directors of Rosoboronexport, which is part of the state corporation Rostec, approved the company's development strategy, which extends to 2020. The strategy will allow Russia to maintain its leading position in the global arms market despite increased competition from other states. The document stipulates that from 2013 to 2016, Rosoboronexport’s sales, which account for over 80% of Russia's arms exports, will remain at the current level, about USD 13 billion per year.

Rosoboronexport has long been known as a reliable, trustworthy partner that acts in full compliance with international law,” said Sergei Chemezov, Rostec general director and Rosoboronexport chairman of the board. “The new strategy will strengthen Russia’s position in the global arms market; everything is in place for this to happen.”

The Rosoboronexport strategy was developed in accordance with a decision of the company’s board of directors that was adopted on December 28, 2011.

“One of the main objectives of the approved strategy is expanding the geography of foreign customers, as well as the range of services,” said Anatoly Isaykin, General Director of Rosoboronexport. “It also seeks to strengthen ties with defense companies, improve research and development work for the creation of new weapons, and develop programs to upgrade   and dispose of previously delivered weapons.”

Rosoboronexport also intends to increase its operational efficiency by introducing new marketing technologies and through a more active use of modern information technology.

Rosoboronexport is planning to expand its international cooperation in developing, producing, and selling military products. In this regard Rostec already begun distributing to its holding companies the rights to provide after-sales servicing of military equipment sold to foreign customers.

Since 2000, the global arms market has been growing by USD 3-3.5 billion dollars a year. In recent years over 70% of arms exports have been conducted by five countries – The U.S., Russia, France, Germany, and the UK. However, the number of other states involved in arms exports has been increasing, as has the competition between the major players. For example, over the past five years, the 13 top countries have maintained only a 55% share of global arms sales.

Rosoboronexport was created by a presidential decree in November 2000 that merged Promeksport and Rosvooruzheniye. Rosoboronexport then became the sole official exporter of Russian weapons and the chief arbitrator of the state's interests on the global arms market. Under the leadership of the current chairman of the board Sergei Chemezov, Rosoboronexport has increased its product volume from 2001 to 2012 by almost four times, with sales rising from USD 3.2 billion to a record USD 12.9 billion. So far, sales figures for 2013 suggest that this year’s projected numbers will be met. Currently, more than USD 35 billion of orders are waiting to be fulfilled. Presently, Russia is ranked second in the world in terms of its volume of arms exports.