The Centre for the Analysis of Strategies & Technologies, Russian Federation, examines the results of east-west defence ventures
					True spirit of co-operation
					The development of relationships with western European countries occupies a special place in Russia’s system of military technical co-operation with foreign states. Although the volume of business contracts concluded does not compare with the level of co-operation with countries such as India, China and some states in the near east, the contacts with western European states in the military-economic sphere have an important significance for the Russian Federation. This is particularly defined by the inclusion of Russia in the processes of military-industrial co-operation that have been actively developed worldwide in the past few years. NATO’s military action against Yugoslavia had a negative effect on the future of military technical co-operation between Russia and the countries of the given region. It introduced further complications into the question of Moscow’s penetration into regional armaments markets. GRAD multiple-launch rocket system Motivation for co-operation From all points of view Russia is interested in agreements for military technical co-operation with western European countries and not just with members of NATO. Certain factors are paramount in Russia’s policy concerning military technical co-operation with western European countries. The customers, in the present situation, are solvent governments able to pay for purchases of arms in foreign currency. Russia is not only a country that is offering military technologies but also a recipient of modern auxiliary equipment through joint co-operative projects. Through military technical co-operation, the Russian political position is being strengthened in Europe. Through the development of military industrial co-operation with western companies, Russian defence enterprises are guaranteed work producing essential replacement articles. Potentially, Russian military enterprises will be given the chance to break into new armaments markets through western partners, including countries or market segments where currently it would be difficult for them to enter independently. In a number of instances, equipping Russian weapons systems with western components, such as avionics, increases Russian competitiveness in the world market and makes it possible to satisfy traditional military industrial co-operative partners. Direct sales of Russian armaments and military equipment to western European states are complicated by the fact that a number of countries belong to the NATO block. Despite this, Russia can count on selling military technology packages, not only to neutral countries, but also to some members of the North Atlantic alliance. T-80U with the Arena active-armour protection Outlook for direct sales Experience has shown that some members of NATO are focusing on re-arming their armed forces, and encountering problems in their relations with their neighbour, for example Turkey and Greece are interested in broadening their sources of military technology. In addition, they are not completely satisfied with the commercial contract conditions for purchasing western armaments. With shrinking military budgets there is a clear desire to buy cheaper military technology. Greece In 1998 Greece put out a tender for the purchase of 250 basic battle tanks and 12 caterpillar-tracked repair and evacuation vehicles. The Greek ministry of defence carried out tests on six models, including the French Leclerc tank, the American Abrams MIA2, the German Leopard-2A5, the Ukrainian T-84 and the Russian T-80U vehicle. The tender included the possibility of production/assembly of the selected model in Greek defence companies. Initially the Omsk T-80U was considered a front-runner, but circumstances have changed. One of the possible reasons could be Russian criticism of NATO in connection with the Yugoslav crisis that led to a negative reaction within the alliance’s executive structures. Finland Russia’s military technical co-operation with Finland has a long history stretching back to the reform era. The Buk-M1 anti-aircraft missile system was supplied in 1996 together with a consignment of small arms and military spares. The contract was largely a means of clearing Russia’s debt to Finland. The Finns paid cash for the remainder of the goods. Sweden Like other Scandinavian countries, Sweden has put out tenders for the purchase of transport helicopters. Russia originally submitted a proposal but the state-owned company Rosvoorouzhenie had to withdraw from the tender because of the specifications given for the vehicles. Cyprus The country continues to re-equip its armed forces with new military technology. The Yugoslavian crisis and Russia’s condemnation of NATO’s missile and bombing strikes has, in the opinion of observers, worsened prospects for military technical co-operation with Russia for Cyprus, whose policy in relation to arms purchases is heavily influenced by the position of Greek military and political authorities. Potential purchases from Russia at present under consideration includes a consignment of 41 T-80U tanks. Austria The Austrian armed forces have expressed their intention to acquire a consignment of multi-purpose helicopters. As of autumn 1999 western equipment being considered included the UH-60 Black Hawk, AS532UC Cougar, NH-90 and the EH-101; and from Russia the Mi-17 and Ka-29. To their advantage the Russian vehicles have international certification and are of the highest possible quality and standard. One positive aspect of the Russian proposal is the Russian Federation’s willingness to supply helicopters as a step toward liquidating its foreign debt to Austria. But there are still concerns about the long-term future of Russian military industrial complexes, in particular the procurement of spare parts for exports. The successful tenderer is expected to be selected later this year.
	MI17
	T-72S
					Co-operation In 1998, the first real steps were taken in the development of military co-operation between Russia and NATO. Representatives of the state-owned company Rosvoorouzhenie, the Russian ministry of defence and the Russian foreign office participated in working parties for national armaments directors at the NATO conference. A series of possible joint projects was specified: modernisation of T-72 tanks to NATO standards in central and eastern European countries; building stability and fire safety into the design of military vessels; creating systems for rescuing submarine crews; organising a unified air defence system for the European continent and an aerospace monitoring and air traffic control system. But once again the military action by NATO countries against Yugoslavia affected the implementation of these projects. However some large-scale military-industrial projects are being implemented with companies in France. Contacts were set up following the signing of an inter-governmental agreement on military technical co-operation in February 1994. Since then the two sides have familiarised themselves with each other’s defence industries. Co-operation has begun between the Russian ministry of defence and the general directorate for armaments of the French ministry of defence. Proposals for joint developments have come from well-known French companies including Thomson-CSF, Sagem, Matra and Sofema. Suggested co-operative projects include the modernisation of projectiles for the Grad salvo rockets, the development of an active armour protection system for Arena type tanks for application to French AMX-30B tanks; the mounting of French thermal imagers on the Russian BMP-3, and equipping the RS30 Smerch with French navigational equipment. MiG Reservations have been expressed by some Russian experts about the long-term prospects for Franco-Russian co-operation for a variety of reasons. France is showing interest only in prestigious Russian technology, capable of expanding French exports to third countries. One example is the interest shown by the French in the Arena tank active-armour protection system that, in the opinion of specialists, is unique. Setting up the Arena system on a French AMX-30B tank significantly increases the stability of the vehicle and, therefore, its competitiveness, by comparison, for example, with the Russian T-80U tank. Another example is the intense interest shown by the French in Russian technologies used in air-to-air missiles. Having shown interest in obtaining the most advanced Russian technologies, France has not expressed interest in mass-produced goods for the world market. But France has expressed interest in purchasing technology for the cold start missiles, developed in the Fakel MDB for the S-300PMU and S-300V air defence systems, but no corresponding interest in joint production on Russian territory of missiles for third-country markets. This has led to a guarded approach to Franco-Russian military technical co-operation for a number of reasons. Relatively few potential projects have actually been implemented and it is felt that the impediments have come from the French side. In some instances the French have taken a rigid stance regarding the transfer of military technology and to possible forms of co-operation with Russian defence organisations. Refusing to provide licences, the French nevertheless sell replacement equipment and units for jointly developed technology for cash only. This results in a heavy workload for Russia that has to carry out much of the national development work, such as the MiG-AT training aircraft with Russian engines and avionics. The readiness of the French to sell instruments and avionics for inclusion in Russian weapons systems, including the proposal to mount French thermal imagers on all Russian armoured vehicles, has a down side and may lead to the death of all Russian instrument production. France in the form of the Airbus company is competing with the Russian-Ukrainian development of the An-70 military transport aircraft. Israel The outlook for joint-ventures with Israel is similar to the French situation. Military technical co-operation between Russia and Israel in theory began in the mid-nineties, when a memorandum was signed, but for several years, real co-operation was non-existent. Russia and Israel compete with each other on foreign markets, in particular in the modernisation of Soviet-made military technology. Israel tries to penetrate the market for modernising military technology in Africa and eastern Europe and also in traditional Russian markets such as India and China, for example the AWACS system created on the basis of the Il-76. Israel also uses Russian technology, offering the incentive of working with small US firms with whom work is taking place in niche markets where large US armaments firms do not consider it expedient to venture; attracting qualified engineers and workers from the former USSR; actively cornering military technologies and taking part in privatisation of defence organisations in central and eastern Europe. Large-scale use by Russian companies of Israeli instruments and electronics on Russian military technology intended for export to third party countries may complicate the future for Russian companies operating in this sector. An-70 A potentially important joint project for military-industrial co-operation between Russia and western Europe is the creation of a military transport aircraft based on the An-70. The development of the An-70 saw Ukrainian and Russian plane builders outstripping the competition in the development of this type of technology. The An-70 first flew in 1994 and in 1997 was exhibited at the Moscow Air Show. Positive report In July 1999, a working party from the Federal German Republic ministry of defence reported positively to the German minister of defence, Rudolf Scharping, that the An-70 should be purchased for the German Air Force. It was noted that in almost every respect the An-70 outstripped the C-130J and the French ATF/FLA. A draft An-70 programme was drawn up for representatives of France, Italy and Spain with the aim of encouraging them to participate in negotiations with the Russian Federation and the Ukraine. France is consistently and actively supporting the FLA-Airbus project. Spain favours the German position, while Italy favours the French position. The presence of pre-conditions and motivations by western European governments for the development of military technical co-operation with Russia does not suggest a favourable outlook. In many cases western European partners are pursuing extremely egotistical aims, including the use of advanced Russian development projects for their own advantage, simultaneously stifling those production centres capable of being competitive, for example in the interests of moving their own components and units onto the Russian market. The result is that Russian companies have to make considerable efforts to penetrate regional markets and maintain their own interests. Military technical co-operation The factors that affect the development of military technical co-operation between Russia and western European governments are numerous and complicated. The policy for purchasing arms and military technology for NATO countries is determined by their membership of the alliance. The military-technical ties between the European members of NATO are traditionally orientated around the US, Great Britain, France and Germany, and the military technology purchased conforms to the standards of the alliance. In addition, countries such as Greece and Turkey receive considerable financial aid from the US, provided on a common basis under the programme for obtaining American armaments. There remains the problem of compatibility between Russian and western European weapons systems. Only within the past few years have certain Russian firms begun to utilise NATO standards and to provide tenders to foreign customers for the production of military material drawn up with these requirements in mind. The obstacles referred to mean that Russia cannot count on a sharp increase over the next few years in the attainable level of military technical co-operation between Russia and the western European countries – certainly regarding the national interests involved. At the same time, this does not exclude a break-through in individual types of co-operation, above all in the area of modernisation of Russian-produced military technology. ©
		S-300V (Antey 300V) air-defence missile system
	"Russian Federation military-economic contacts with western Europe have an important significance"