Vietnam to Buy More Missiles Coast

NPO Mashinostroenia Group began preparing contracts to sell missile systems Bastion-P for the coast of Vietnam.

NPO Mashinostroenia Group began preparing export contracts coastal missile system Bastion-P with Vietnam not through arms export company Rosoboronoexport. Funding for this contract is taken from the Russian state credit for Vietnam.

Currently, the two sides are determined the preliminary conditions of the export contract: the exact amount of equipment purchase, the size of the Russian state credit and the transfer deadline.

A source close to the Russian Finance Ministry, Russia is negotiating with Vietnam on credit to buy Russian weapons.

State credit scale has not been identified as "directly dependent on the number of weapons procurement, which it is currently being discussed." "One of the parties to the contract will be NPO Mashinostroenia. That role is defined for the NPO and the company is negotiating with Vietnam to provide a system Bastion. " This source also said the transfer of missiles to Vietnam can take place not earlier than in 2013-2014 by the Russian side to prepare and have added to the budget law to provide credit export to Vietnam.

A source close to Rosoboronoexport, 10/08 Thursday, said, "credit problems related to Vietnam to buy Russian weapons are at the stage to discuss and reach the final."

NPO Mashinostroenia has allowed himself of Russian President Dmitri Medvedev to prepare the export contract, although it has not been formalized legally. This group will only be signing export contracts through Rosoboronoexport if not get this right legally.

A source in the Russian president's office revealed that President Dmitri Medvedev has been reported from January 6.2011 to plan an independent NPO arms export finished products, the person filing the report, Assistant President Sergei Prikhodko concurrently Chairman of the Board of the NPO Mashinostroenia and President Medvedev wrote up a report is "Yes", however no formal decree of the President.

A source in the field of military technical cooperation, said NPO Mashinostroenia are actually preparing themselves to the world market. By 2007, the NPO has self arms exports and understand Vietnam market, and has been President of Russia permission to continue doing it. Federal Agency for Technical Cooperation, the military announced this Rosoboronoexport.

NPO Mashinostroenia to export in 2007 was independent of some form of military products should have enough experience.In 2007, the export market Russian arms to form a clear and full military semi-finished products passed into the hands of state companies is a Rosoboronoexport act as intermediaries to supply arms.

Regulation on the subject of military technical cooperation is not empowered to export finished products, but allows to provide spare parts to foreign customers, the components, parts or service modernization and maintenance.

Currently, there are regulations on the subject of military technical cooperation is Rosoboronoexport (intermediate-owned companies), Rostechnologyy (marketing) and 21 firms to develop and produce military goods. Of these, only Rosoboronoexport may export all kinds of military, first of all finished products. The remaining firms can only export spare parts and other components and materials, as well as after-sales maintenance services for the weapons and equipment have been provided earlier.

Rosoboronoexport addition, only two companies may sell finished products to foreign countries - it is in its shipbuilding Zvezdochka Severidvinsk and Admiralteiskye Verfi in St.Petersburg. The two firms are in uniform Shipbuilding Corporation OSK. April 11.2010, Admiralteiskye Verfi announced its development strategy, which proposed to give them "the subject regulations and military technical cooperation."This Regulation will be given full independence group offers its products to world markets without the help of Rosoboronoexport.

Currently, the majority Rosoboronoexport control the export of Russian military. In 2010, Russia sold $ 10 billion of foreign weapons and equipment, including 8.6 channel Rosoboronoexport. Meanwhile, in 2009, the corresponding index is 8.8 and 7.4 billion USD. As of early 2011, the volume of orders Rosoboronoexport is 38 billion USD.

It is suggested that, if the direct sales contract Bastion for Vietnam to be signed, then this is the first pain attack on the monopoly of Rosoboronoexport, the export of military products into single products in Russia.

However, expert Konstantin Makienko, Centre for Analysis of Strategies and Technology (TsAST, Russia) is that financial losses due to NPO Mashinostroenie Rosoboronoexport of independent arms exports is not large. "Many do is that contracts with the NPO may be signed, on average provide a system / year.

This system is very powerful, very expensive and very sensitive politically. In this segment, the market will undoubtedly focus on the alternative system is the Bal-E. So Rosoboronoexport possible countermeasures symmetry is to start marketing the system easier to sell than the Bal-E. In 2010, under the contracts signed earlier Rosoboronoexport, Russia, Vietnam has provided a valuable Bastion system USD 150 million.

In the opinion of the Council members under the Ministry of Social Defense, said Ruslan Pukhov, the loss is much greater loss of Rosoboronoexport image.

Defense Studies