Russia Maintains 98 Military Deals Despite Sanctions

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A soldier at the Russian Army Festival in Moscow. - Sputnik International
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Russia faces challenges because of Western sanctions but has nonetheless 98 active military and technical agreements with other countries, the head of Russia's Federal Service for Military-Technical Cooperation (FSMTC) said Monday.

LE BOURGET (France), (Sputnik) — The United States and the European Union, as well as several other countries, have imposed several rounds of sanctions on Russia over its alleged interference in the conflict in the eastern Ukraine and Crimea's reunification with Russia in 2014. Moscow has repeatedly denied meddling in the conflict in eastern Ukraine.

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"Working in these conditions is an ungrateful occupation, the problems are serious," FSMTC Director Dmitry Shugaev said at the Paris Air Show. "Nevertheless, 98 agreements are signed."

Over 90 percent of Crimea's residents voted in favor of the reunification in a referendum, the results of which have not been recognized by Ukraine, Brussels and Washington. The Russian authorities have repeatedly said that the people of Crimea have made their choice in a democratic vote in full accordance with international law and the UN Charter.

Russian state arms exporter Rosoboronexport has sold arms and military equipment worth more than $5 billion since the beginning of the year, the order portfolio stands approximately at $45 billion, CEO Alexander Mikheev said Monday.

"Rosoboronexport has sold weapons and armaments for today worth more than $5 billion in 2017 as part of implementing planned contracts. The order portfolio is worth about $45 billion. Contracts worth about $8 billion have been signed since the beginning of the year," Mikheev told reporters at the Paris Air Show.

Aeronautical equipment makes up nearly a half of the contracts, he noted.

“The share of aeronautical equipment in the total export volume makes up 45-48 percent. It is $19 billion in value terms,” the Rosoboronexport CEO said.

He added that Sukhoi Su-30 fighters and Yakovlev Yak-130 trainer aircraft were the most sought after by customers.

Rosoboronexport is among the world’s largest arms exporters, selling weapons to 116 countries, according to the organization’s website.

Rosoboronexport is cooperating with European and US companies in defense industry within the framework of previously concluded contracts, Mikheev added.

"We work with European and American companies in the framework of previously signed contracts, be it space or other areas," Mikheev told reporters.

Russian state arms exporter Rosoboronexport this year implements export contracts for the supply of 106 helicopters, the relevant order portfolio stands at $4.7 billion, the company's CEO said.

"Today we are implementing contracts for the supply of 106 helicopters for foreign customers. The total portfolio of orders for helicopter equipment from Rosoboronexport as of today stands at $4.7 billion," Mikheev said at the Paris Air Show.

Head of Russia's Federal Service for Military-Technical CooperationShugaev said sanctions were certainly a problem for Russia, but not a critical one.

Russia is confidently the second-largest arms exporter and claims putting that assertion into doubt are "wishful thinking," the head of Russia's Federal Service for Military-Technical Cooperation also said.

"We occupy a serious niche, our positions are strong, it is unlikely that someone would be able to remove us from them," Director Dmitry Shugaev said at the Paris Air Show.

Shugaev called claims that France may have overtaken Russia as the second-biggest weapons exporter "wishful thinking."

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He added that Russia's 27-percent share in the global combat aviation market forecast over the next decade will catapult the country to first place in the field.

"Experts agree that in the next 10 years, the share of Russian combat aviation will be 27 percent, this is first place," Director Dmitry Shugaev told reporters at the Paris Air Show.

The Stockholm International Peace Research Institute (SIPRI) said in a report in February that the United States, Russia, China, France and Germany were the five biggest arms and military equipment exporters in 2012–2016 accounting for 74 percent of the total volume of exports in the military area. The think tank named Russia the world's second largest arms exported in 2016 after the United States accounting for 23 percent of all major arms exports.

In March, Russian President Vladimir Putin said that Russia's arms exports in 2016 exceeded $15 billion.

The 52nd Paris Air Show kicked off at Le Bourget airport in the French capital of Paris earlier on Monday. The exhibition, which is to last through June 19-25, gathers the players on the global aviation market demonstrating their latest developments and technological innovations.

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