Tag Archives: Yuriy Borisov

Foreign Electronics Still Preferred

State-owned technology conglomerate Rostekh reports that the Russian government purchases imported electronics four and a half times more often than comparable domestic products.

The complaint came from Sergey Sakhnenko — industrial director of Rostekh’s radioelectronics cluster (REK) — at a joint meeting of the Bureau of the Union of Machinebuilders of Russia and the Bureau of the Association “League for Assistance to Defense Industries” on May 31.

Sakhnenko
Sakhnenko

According to Interfaks-AVN, Sakhnenko said:

“The volume of sales of products from REK enterprises to federal government executive organs in the medical equipment, computing technology, telecommunications equipment segments and other electronics in 2018 amounted to 18 billion rubles [$275 million]. Meanwhile, the volume of state purchases just in the sphere of IT and telecommunications came to not less than 100 billion rubles [$1.5 billion] for the year.

In Sakhnenko’s words, foreign products dominate Russian government purchasing despite the existence of Russian-made analogues comparable in quality and characteristics to imported equipment.

Replying for the government, Deputy PM and arms tsar Yuriy Borisov could only state the obvious. The Russian radioelectronics industry faces the task of dominating its internal market. Domestic technology should be introduced dynamically and commercialized. Besides dominating its home market, Russian technology has to be better positioned in foreign markets. “Only under such a state policy can we raise this sector,” he said.

Pretty thin stuff for Russian electronics manufacturers.

Suffice it to say, Russia’s import substitution policies since 2014 haven’t dented Moscow’s dependence on foreign high technology products. It’s a lingering pressure point the U.S. and NATO could exploit but for the greed of their politicians and companies still more than willing to do business with Russia.

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Postscript on PAK FA

As if on cue, Russian Deputy Defense Minister and arms tsar Yuriy Borisov told journalists on February 2 that production of Russia’s T-50 / PAK FA fifth generation fighter may not begin until after 2018.

“Most likely,” he said, “this will be the next state armaments program, that is 2018-2025,” TASS reported.

Borisov added that the Defense Ministry is not in a hurry.  He said, as long as existing analogues satisfy the armed forces’ requirements, there is no need to spend money to buy expensive new equipment, according to TASS.

“We’ll use it on a trial basis, we’ve bought limited quantities, we’ll see how they work in practice, identify all deficiencies, put in place all changes so when the time comes to buy the models have been developed in practice,” Borisov noted.

What satisfies the requirements at this point is the procurement of 12 MiG-29SMT, two Su-30M2, 17 Su-30SM, and 12 Su-35S fighters, or 43 fighters in all, in 2016.  But, after peaking in 2014, Moscow’s acquisition of combat aircraft declined some in 2015 and then fell more sharply in 2016, according to bmpd.