Multimillion show
The Third International Maritime Defense Show (IMDS2007) started in St. Petersburg Wednesday. Its results will be clear only from July 1, 2007. However, on the first day of the show, representatives of both Rosoboronexport and Federal Agency for Industry predict signing of multimillion contracts.
The largest show
The third IMDS is to be the largest in its history. According to Boris Alyoshin, head of the Federal Agency for Industry, the Show is getting more extensive from year to year and today it is quite comparable with the Air Show. About 400 Russian and foreign companies participate this year. Besides, within 5 days the show is to be visited by 50 official delegations from 44 states including Germany, Greece, Egypt, Spain, Italy, Pakistan and Croatia. According to Vladimir Pakhomov “We have rearmed India and China already and now we are to develop in other directions.”
8 ships and boats are placed along the quays of Sea Terminal including the newest corvette “Stereguschyi” , which is to enter Russian Navy in the nearest future. Mikhail Oseevski, Vice-Governor of St. Petersburg, told at the opening ceremony that shipbuilding companies and design bureaus of St. Petersburg have a lot to demonstrate at the Show as they developed much equipment in last two years. "Our ships have good export potential as former Shows proved,” Oseevski thinks. Russia is to present the latest ships including corvettes and patrol boats deployed by border guards and the Ministry of Internal Affairs.
From intents to contracts
The former shows were marked by discussion of initiatives and intents while this time it is planned to sign contracts for tens of millions of dollars. According to Vladimir Pakhomov, as of today we have principal agreements with a number of countries ready to sign contracts in future. In particular, it is planned to enter into contracts with TALES (France) a number of Indonesian companies. “We are going to propose naval arms, coastal facilities, ammunition. In specific cases the contracts may value up to hundreds of millions of dollars,” Pakhomov noted. In 2007, Russia’s naval arms export is are predicted to reach $2 billion. Despite the decrease as compared with the beginning of the year, Rosoboronexport thinks the sales will grow by the year end. Pakhomov attributed the decrease to finalization of large-scale orders in the previous year. Besides, for the first time in the history of relations between Russia and Sapin these two states may come to an agreement as regards joint project for the third country as well as on supply of Russian arms for Spanish Navy.
According to Boris Alyoshin, the contracts are likely to be concluded mainly for building of naval ships and civil vessels, in particular, for gas and oil industry. Cooperation with foreign companies is the most promising in the sphere of arms supply for naval ships being built for the third countries. Thus, Alyoshin says, the role of the United Shipbuilding Corporation is of special attention as it is the company capable of competing at the world market. As of today there are 122 federal state unitary enterprises and 28 joint stock companies operating in Russia but they are not integrated, either technologically or financially. Experts say Russian shipbuilding industry will not be able to compete at the world market unless it integrates. “However, we do not mean governmentalisation but concentration of shipbuilding resources at the final phase of production,” Alyoshin says. Sales of the Russian united shipbuilding corporation are projected to exceed $10bn per year with $3-4 billion to start with.