Russian Helicopters gets green light for exports of military products
09.10.2014 / Moscow

Russian Helicopters, part of State Corporation Rostec, has received an export licence to sell a range of military products outside Russia, including spare parts, components and technical documentation. The company may now also provide a full range of support services (technical maintenance, repairs, upgrades, etc.) and participate in joint ventures with non-Russian clients, and establish and equip service and maintenance facilities in other countries and train up foreign staff. Russian Helicopters has also been granted permission to import military goods needed for its own manufacturing.

The approval was granted by the Federal Service for Military-Technical Cooperation (FSMTC), following Presidential Executive Order no. 232-rp issued on 21 June of this year.

Russian Helicopters CEO Alexander Mikheev received the Export Licence from FSMTC Director Alexander Fomin at an official ceremony at Rostec’s offices in Moscow today that was also attended by Rostec CEO Sergei Chemezov and Rosoboronexport CEO Anatoly Isaykin.

“An export licence is not only a stamp of quality and recognition of the high level of trust that the state has in Russian Helicopters,” said FSMTC Director Alexander Fomin. “It is also a down-payment that Russia’s helicopter industry will warrant thanks to the high quality of their products and services.”

“This is an important step for Russian Helicopters,” said Rostec CEO Sergei Chemezov. “An export licence will enable Russian Helicopters to strengthen its position in its core markets, and also to expand its global presence by bringing its after-sales care offering to new markets. If the company continues to be as successful as we expect, we will consider rolling out a similar licencing programme to other Rostec companies.”

“We believe that Russian Helicopters’ new status will allow us to significantly increase our profitability by growing the service side of our business,” said Alexander Mikheev. “Having direct relationships with military helicopter operators will give us the opportunity to provide services more quickly, grow our order book and make the company more competitive on globalising international markets.”

More than 5,500 Russian- and Soviet-built helicopters currently operate worldwide. From 2001 to 2014 Russian state arms export agency Rosobornexport delivered more than 740 new helicopters under contracts with 39 countries. Developing an efficient after-sales care system for these helicopters is a priority for Russian Helicopters.

Previously the company worked on such projects as a co-partner with Oboronprom. Supplies of military helicopters have traditionally fallen within the remit of Russian Helicopters’ partner Rosoboronexport, responsible for exports and imports of a full range of finished military products.

The Federal Service for Military-Technical Cooperation (FSMTC) is the federal body responsible for control and oversight of military and technical cooperation between Russia and foreign states.

Kazan Helicopters produces Mi-8/17 series helicopters that are operated in over 100 countries worldwide. A wide range of configurations are produced: transport, passenger, search and rescue, landing and transport, among many others. Preparations are underway to launch production of the Mi-38 passenger transport helicopter. Since 1997, Kazan Helicopters has been certified to develop helicopter technology: today the light twin-engine Ansat helicopter is in series production.

Russian Helicopters, JSC is a subsidiary of UIC Oboronprom, which in turn is a part of State Corporation Rostec. It is one of the global leaders in helicopter production and the only helicopter design and production powerhouse in Russia. Russian Helicopters is headquartered in Moscow. The company comprises five helicopter production facilities, two design bureaus, a spare parts production and repair facility, as well as an aftersale service branch responsible for maintenance and repair in Russia and all over the world. Its helicopters are popular among Russian ministries and state authorities (Ministry of Defence, Ministry of Internal Affairs, Emergency Control Ministry), operators (Gazpromavia, UTair), major Russian corporations. Over 8000 helicopters of Soviet/Russian make are operated in 110 countries worldwide. Traditionally the demand is highest in the Middle East, Africa, Asia-Pacific, Latin America, Russia, and CIS countries. Russian Helicopters was established in 2007. In 2013 its IFRS revenues increased 10% to RUB 138.3 billion. Deliveries reached 275 helicopters.

State Corporation Rostec is a Russian corporation founded in 2007 for the purpose of promoting the development, production and export of hi-tech civilian and military industry products. It comprises about 700 organizations, nine of which have now been formed as holding companies of the military-industrial complex and five of them are involved in civil industries. Rostec’s organizations are located in 60 constituent entities of the Russian Federation and supply their products to the markets of more than 70 countries. The revenue of Rostec in 2013 amounted to RUB 1, 04 trillion, with net profit of RUB 40 billion. The tax deductions into the treasuries at all levels exceeded RUB 138 billion.

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