Rapid Fire April 3, 2013: Russia Ponders Vendor Financing, Exports Beyond Rosoboronexport

• Russian president Vladimir Putin wants to use loans to support armament sales but:

“these loans must be based on market principles and not be like the loans the Soviet Union used to accord for ideological reasons, and that no one ever saw again. Our work in this area is built on market principles and we need to develop it. This is a normal practice around the world, including in countries with recognised market economies.

Timely loans made on market terms will help to promote our goods and create markets for subsequent maintenance of goods and for later sales of additional equipment and spare parts.”

• Putin also sounds like Rosoboronexport’s monopoly on Russian military exports may come to an end:

“We authorised some defence industry companies not just to sell goods through the organisation that operated essentially as a monopoly in this area, but also to make direct export sales of spare parts, repair and modernisation services for military goods, and carry out joint research and development. Military exports have increased as a result. This is a positive experience and we should keep this in mind.”