Saturday, July 13, 2024

Rosoboronexport Seeks Global Technical Partnerships

By Staff Correspondent

Alexander Mikheev, the Director General of JSC Rosoboronexport and Deputy Chairman of the Russian Engineering Union, chaired a meeting of the committee for the development of foreign economic operations related to military equipment.

The video conference session, led by the Deputy Chairman of the Russian Engineering Union and Chairman of the Committee on Industry and Trade of the RF State Duma, Vladimir Gutenev, was primarily dedicated to discussing the transformation of the military and technical cooperation system. The main focus was on addressing the challenges arising from the increasing interest of global market players in technological partnerships.

“Recently, Rosoboronexport has effectively executed over 10 significant technological initiatives for the collaborative production of products for diverse armed services, with an additional 10 currently in progress.” Alexander Mikheev stated that the corporation intends to pursue lucrative projects in the Asian-Pacific Region, the Middle East, Africa, Latin America, and the CIS nations. Our prediction predicts that by 2030, technical initiatives will constitute 40% of the global military products market, which is twice the current level. Rosoboronexport is contemplating a shift to a new business model focused on collaboration with commercial firms in order to efficiently function in this rapidly expanding sector.

The primary driver behind the move in military and technical cooperation towards technological partnership is the widespread determination among countries to maintain control over their own industries, leading to the implementation of laws that restrict the import of finished products.

A significant obstacle that Russian firms face while engaging in technical partnerships is the potential danger of producing counterfeit products overseas. This not only results in financial losses but also has a detrimental impact on the reputation of the Russian defence industrial complex.

In order to mitigate the detrimental effects of unauthorized production, Rosoboronexport is collaborating extensively with state clients and business partners who export Russian goods overseas. Agreements for cooperation in intellectual property were reached with the leading Russian defence holding companies. Legislative measures are implemented to strengthen controls on counterfeiting, such as the implementation of preventive patenting for intellectual property to enable lawful prosecution of illegitimate manufacturers.

Moreover, as part of the educational and personnel initiatives of the Russian Engineering Union, Rosoboronexport suggests bolstering capabilities in the areas of innovative management, financial administration, and intellectual property oversight.

Today, Rosoboronexport is undergoing a transformation to establish itself as a contemporary, commercially focused corporation that is receptive to technology transfer. Alexander Mikheev emphasized that by focusing on developing competencies in innovative and risk management, financial administration and corporate governance, deal structuring, intellectual assets control, and business-oriented marketing, they aim to maintain their leading positions in the armament market.

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