EU sanctions against Russian defence enterprise Rostec could lead to a loss of US$1 billion in the short term.
This is owing to the use of European components in Rostec products exported to third countries, a Rostec statement said detailing the impact of fresh economic sanctions imposed against Russia last week.
“Undoubtedly, cooperation between Russian and European industries is much broader and deeper than between anyone else. Yet those who impose sanctions should understand that such cooperation is double-sided. Both sides will suffer as a result of a breakdown,” Rostec said in a statement. The sanctions can essentially be divided into several categories. The first category includes concerns Machine Engineering Technologies, Kalashnikov, Sirius, holdings High Precision Systems (“Vysokotochnye Kompleksy”) Stankoinstrument, RT-Chemcomposite, Tula Arms Plant (JSC "Tulsky Oruzheiny Zavod") and NPO Basalt. The sanctions will not have an impact on state defense order production, because no European components are used in military production, it said. The second category includes sanctions against Oboronprom. This holding has not sought and does not seek loans from European banks and other foreign financial institutions. Bond issues of Oboronprom are purchased by Russian banks (in particular, VTB).
As a result, a new round of sanctions will have no impact on the holding's current business activities, the statement added. Sanctions against the Director General of Rostec, Sergei Chemezov, apply to his property and accounts opened in European banks. All Mr. Chemezov’s property and funds are held in Russia. In this regard, the EU sanctions will not have a significant impact.
The imposed sanctions will encourage the expansion of import substitution programs and will accelerate the process of developing and implementing new domestic technologies. Rostec has all the necessary intellectual and financial resources to address these issues, the statement concluded.
China may supply components required for Russias defence industry following US and EU sanctions against Russia. Although Russia does not buy many weapons from foreign sources it does procure a lot of electronic and mechanical components to be used in its weapons systems
Rosoboronexport could benefit from a growing demand for low priced arms despite the looming threat of US sanctions. The Obama administration has passed international sanctions against Kalashnikov, the Russian automatic weapons manufacturer but is yet to take a decision against Rosoboronexport which exports most of Russias ships, tanks, aircraft and other heavy weapons
Americas most popular automatic weapon will soon be off the shelves. The AK-47, manufactured by Russias Kalashnikov is being scooped by American gun enthusiasts as Washingtons sanctions against Moscow cover the famous automatic weapons manufacturer
Rostec has offered a 25% share of the share exchange of helicopter companies to the Italian company AgustaWestland, the company said in a statement. The potential consolidation will result in the company becoming the largest helicopter manufacturer in the world
Delivery of arms from France to Russia will not be affected by EU sanctions imposed on Moscow. Frances delivery of two warships to Russia will not be affected by the current EU sanctions imposed on the country due to the Ukraine crisis, according to RIA Novosti
The United States has prevented investment firm Merrill Lynch from acting as adviser to a major Turkish defense contractor as a rebuke to Turkeys plans to buy missiles from a US blacklisted Chinese company. This latest development comes only a day after the US prevented WestCAM Solutions, an American company from selling camera systems and laser pointers to Turkey for its newly developed unmanned aerial vehicle (UAV), the Karayel
Sozvezdie has developed set of communication devices which can endure immersion in water and provide high-quality transmission even with strong interference, according to Ria Novosti. Sozvezdie is a part of the state run Rostec and is based in Voronezh
The European Unions decision to impose sanctions against Russias Rostec will likely impact the number of projects its currently involved in with European defense firms. On-going projects include a venture with French company Turbomeca, which is part of the Safran group, for delivery of Ardiden 3G engines
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