The parties agreed to carry out joint and concerted measures to develop export of the high-technology products manufactured by Rostec companies.
Under the terms of the agreement, Rostec and the REC are to arrange information exchange: Rostec will be responsible for informing its holding companies and direct management organizations about the REC's activities and opportunities and for notifying the REC about carrying out the measures that involve high-technology export and international business development, whereas the REC will provide information on the foreign markets' opportunities and prospects, and contribute to the search for foreign partners while also lending further support to Rostec's foreign economic activities. Specifically, the REC will assist in drafting export contracts, going through certain export procedures, customizing export products internationally, and advise on contract closure procedures.
The REC will also support Rostec's organizations financially in the field of insurance and provision of state guarantees, and facilitate lending to foreign financial institutions and foreign consumers of Russian products.
"One of Rostec State Corporation's strategic objectives is to establish itself as a leader on global technology markets through manufacturing products with high added value," said CEO of Rostec Sergey Chemezov. "Cooperation with the REC will offer new opportunities for Russian technology export. Manufacture of competitive high-tech civilian products will allow ensuring returns to scale which are of crucial importance to the development of the Corporation. In the long run, it will allow both to ensure economic sustainability of some industries and to use civilian know-how in the field of the MIC. Rostec deals with the issues of conversion and technological breakthrough at the level of the new Development Strategy through 2025 with the planning horizon up to 2035.
"Russia possesses a sufficient amount of products, technologies and projects which may be in demand overseas. The mission of the Russian Export Center is to change Russian economic model, diversify the economy, and to increase the share of high-tech civilian products," said CEO of the Russian Export Center Pyotr Fradkov. "Cooperation with Rostec will facilitate Russia's expansion to "smart" markets where over a half of added value of a product is formed due to intellectual investment into technology."
Rostec Corporation is a Russian corporation that was established in 2007 to facilitate the development, production and export of high-tech industrial products designed for civilian and military applications. The Corporation comprises over 700 organizations that are currently part of eleven holding companies operating in the military-industrial complex and three holding companies working in the civilian industry, as well as over 80 directly managed organizations.
Russian Export Center (REC) JSC is a state export support institution, established with the support of the Government of the Russian Federation. The REC is a “single window” for working with exporters in the field of financial and non-financial support measures, including cooperation with relevant ministries and agencies. The Russian Agency for Export Credit and Investment Insurance (EXIAR JSC) and Roseximbank JSC were integrated with the Russian Export Center Group to completely implement the “single window” concept. The REC provides a wide range of services for non-oil companies at all stages of export cycle, cooperates with relevant executive agencies, prepares suggestions for improving Russian business climate in terms of export and foreign trade activities, interacts with business and expert community on a regular basis, participates in removing barriers and “system” limitations.
