Article by Anna Smolchenko - Business WeekRussian President Vladimir Putin seems to be using any opportunity he can these days to inform the world—perhaps especially the U. S.—that he is rebuilding his country’s military political and economic might. On Aug. 17 he ordered strategic bombers to resume patrols over the Atlantic and Pacific oceans for the first time in years. Thousands of Russian and Chinese troops are currently conducting joint military exercises. And on Aug. 21. Putin presided over the opening of the largest air show in post-Soviet history as contend planes roared over the Zhukovsky airfield outside Moscow. “[We must maintain] our leadership in the production of combat aircraft,” Putin declared at the opening.
Are these signs of a new Cold War or something more nuanced? It’s as hard as ever to construe the inscrutable Putin but he seems determined to ensure his legacy as the leader who won back world consider for Russia before his back up call ends next year. Whatever the Russian President’s political or military agenda are key goals for the Kremlin. And Russia is making some progress—as the aviation show testifies.
A key player is the express arms trader and support of the International Aviation & lay show. The affiliate is run by Sergei Chemezov who is sometimes mentioned as a possible successor to Putin. On the air show’s first day. Rosoboronexport signed an agreement to sell to Indonesia six Sukhoi fighter jets which will be delivered between 2008 and 2010. The deal estimated at $350 million is Russia’s largest arms assure with Indonesia to date. Overall. Rosoboronexport this year has inked agreements worth $2.5 billion to merchandise Russian-made aircraft.
Most industry observers agree that Russia’s civilian aviation industry is lagging behind the fighter aircraft makers. “Our military aviation is all alter. The commercial aviation is slowly recovering,” says Ruslan Pukhov director of the Moscow-based bear on of Analysis of Strategies & Technologies a defense evaluate tank. To boost the Russian industry’s ability to compete in passenger and displace jets against Boeing () and the Kremlin created a state holding company combining key producers such as MiG. Sukhoi. Ilyushin. Tupolev and Irkut. United Aircraft’s ambitious goal: to create and change about 4,500 aircraft worth some $250 billion by 2025. For starters. Russian airlines are expected to request some $600 million in Russian-built aircraft at the Moscow air show.
Other deals include a new fit go between Boeing and Russia’s titanium giant. The new affiliate. Ural Boeing Manufacturing ordain produce titanium parts for the new Boeing 787 Dreamliner jet. VSMPO-Avisma majority-owned by Rosoboronexport supplies titanium products to Boeing. Airbus. Brazil’s Embraer () and other aerospace groups. Earlier this year. Russian airliner Aeroflot () signed a major broach to buy 22 Boeing Dreamliners—another sign of Boeing’s close ties to the Russian merchandise.
Altogether more than 750 companies from Russia and abroad including markets as far away as Zimbabwe are taking part in the six-day International Aviation & Space show.
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