Andrei Misyura: RAE has found its niche

31.08.2015 — Analysis

We should show armored vehicles rather than demonstrate achievements of farmers.

The Tenth Russian Arms Exhibition. Nizhny Tagil -2015, which is known worldwide as RUSSIA ARMS EXPO (RAE), will take place at the Staratel test range on September 9-12. The anniversary even is expected to bring together about 160 Russian and foreign exhibitors, more than 2,000 industry specialists and more than 20,000 visitors. The specific features of the coming exhibition and its further growth focus areas have been outlined in the interview given by Andrei Misyura, Minister of Industry and Science of the Sverdlovsk Region, to RusBusinessNews. 

– Andrei Vasilievich, the industrial exhibition – INNOPROM – has become an event of international significance, though it is ten years younger than RAE. In my opinion, the arms exhibition has shuddered to a halt and seems to be limited to the regional level. Does it mean that it less supported by the federal government?

– Let us skip the comparison with INNOPROM – these are totally different exhibitions. You are very wrong in your opinion. I visited RАЕ for the first time in 2006 when I was still a young specialist. If we compare that exhibition with the forthcoming one, it’s like comparing apples and oranges. The support it receives from the government is not less than the support gained by INNOPROM: In 2013, it was awarded the status of an international exhibition of arms, military equipment and ammunition. It is organized with the government support, including the support of the Ministry of Industry and Trade of the Russian Federation.

– Why did the Ministry of Defence organize an absolutely new international exhibition - ARMY-2015 – near Moscow?

– The question is quite logical. I do not think that there is any risk of competition between these exhibitions. Although the test ranges and exhibition facilities are similar in their capabilities, there are a lot of substantial differences between them. RAE is a specialized exhibition targeted at those who are interested in buying vehicles and machines for ground forces: tanks, armored carriers, engineer vehicles, air defense equipment and artillery. ARMY is an exhibition of achievements in the Russian defense industry; it showcases machines and arms used in all military branches, missiles, power sources, non-traditional types of arms, biotechnology, metrological support facilities for armed forces and new kinds of fuel.

ARMY has been conceived as a show for a wide range of visitors. On the other hand, RAE deliberately elected not to showcase any machines any equipment that are not related to wheeled and tracked vehicles for ground forces. Over 15 years the exhibition has settled down into its niche: It attracts specialists who want to buy weapons, to find a sales market or partners for cooperation. Thanks to opting out of historical and restoration exhibitions, exhibits can be placed within walking distance from each other, the cost of exhibitors’ participation has been decreased and the logistics of the exhibition area has been streamlined.

Furthermore, starting from 2016 the ARMY exhibition will take place once every two years, i.e. it will not overlap RAE events. The respective decree adopted by the RF government in June 2015 clearly demonstrates that the federal government does its best to harmonize such events, scheduling them by years for convenience of participants and visitors.

– What about exhibitions held in other countries? Do the RAE organizers have any ambitious plans by entering into competition with the IDEX Exhibition in Abu Dhabi and other ground forces arms shows?

– In a sense, the Nizhny Tagil exhibition is beyond competition. It is the only exhibition showcasing such a wide range of tanks and special vehicles of the countries of the Eurasian Economic Union; it cannot be compared with any other venues, including the abovementioned exhibition in the United Arab Emirates. Foreign partners who buy Russian vehicles and equipment are familiar with our exhibition. They know that after they have visited the exhibition, they can come to the enterprise, be shown around the manufacturing facilities, assess the level of technology and process equipment as well as industrial practices. Expert designers can promptly address their concerns and answer their questions, which cannot be done at any other exhibition venue: Uralvagonzavod cannot bring all its experts to Abu Dhabi. Such opportunities can be seen as our advantage.

The Staratel test range does not stand still: The new video observation system is being installed, the fire-control system is being upgraded, the program aimed at improving the infrastructure of the exhibition complex is being prepared. After the program is put into action, tests of promising prototypes of military equipment and combat vehicles will be conducted throughout the year. The program also includes upgrading of the target field and grandstands as well as improvement of transport accessibility.

The business part of the form is going to be more intense. Keeping in mind that the exhibition is visited by government officials of our country and by partners from other countries, we intend to bring up and discuss issues of the highest importance, both in the sector of export contracts and of the home policy.  This year, for example, the new law on government defense orders will be discussed at the military and industrial conference. Besides, we are offering a seminar addressing import substitution in the sector of industrial technologies and hosting the thirteenth meeting of the Inter-State Commission. The participants of the meeting will discuss the military and economic cooperation of the Collective Security Treaty Organization (CSTO). 

- The Nizhny Tagil Exhibition is often criticized for showcasing obsolete vehicles and equipment. What novelties, apart from Armata, will be shown by the RAE-2015 participants?

- At RAE, the Uralvagonzavod Research and Production Corporation will demonstrate the Armata unified heavy tracked platform with an unmanned turret and remote fire control system. However, it is not the only novelty of the military and industrial complex of the Russian Federation. Visitors will be able to see models of the most recent innovative weapons and equipment, for example, a self-propelled howitzer – Koalitsiya-SV (Coalition-SV), a 152 mm smooth-bore gun, and airborne equipment for front-line aircraft fleet.

– What economic achievements can companies operating in the military and industrial sector boast at the exhibition? Have the projects in production upgrading been completed? Were the companies successful in finding alternative solutions to Ukrainian components?

– At large, the upgrading projects have been completed – by the way, most of the work had been done before the sanctions against Russia were imposed. Some companies still have unsolved issues with machine tools and equipment, though the situation is not critical: The defense industry is one of the most technologically developed sectors in the country and, in fact, it drags out all our manufacturing industry. The military and industrial sector accounts for the highest R&D share. The years when design bureaus operated separately from production factories, which did not have any research departments or pilot production, have become a thing of the past. Industrial enterprises cannot exist without R&D; therefore, the factories that operated without research subdivisions have become history. Only competitive enterprises remained on the market. They are given assignments on creating robotic stations, unmanned combat vehicles and industrial application of additive and laser technologies.  

All thorny issues related to substitution of Ukrainian components have been solved. At the very beginning, when we noticed the first red flags, we recommended our enterprises to take care of stock reserves of imported components and to start looking for alternative suppliers. Then we adopted industry-related plans for substitution of certain product groups. The government of the Sverdlovsk Region helped to organize work with new suppliers and to raise federal funds.

Today, we can say that a number of product items have been substituted: We have found Ural producers of hexagonal boron nitride and fine-grade boron carbide, which were previously supplied by the Zaporozhye Abrasive Integrated Factory; we have also found suppliers of electrodes for nickel-cadmium batteries and started manufacturing ceramic-metal friction disks instead of those produced by the Power Metallurgy Plant located in Brovary (Ukraine).

Substitution of scientific products (aircraft and diesel engines, critical components of weapon systems) takes longer time. The problem is not only in the technical difficulty of the task, but also in the absence of design documentation, which remains in the possession of Ukrainian companies. That is why the aforesaid problem is given the closest attention at all levels of the public administration.

– Does RAE help to develop the military and industrial sector of the country?

– It certainly does. RАЕ has evolved from URAL EXPO ARMS. When it was created, the assumption was that the exhibition will be important, first of all, for our manufacturers seeking markets and partners. Our objective is to promote its further, as it contributes to employment and created new jobs. Besides, RAE offers an excellent opportunity to enterprises, which do not deal with defense orders, to introduce specialists, experts and the country’s top leadership to dual-use technologies.

Fortunately, we can forget about the time when all technologies and equipment were purchased from other countries, thus, inevitably leading to degradation of the home industry. Finally, we have started investing capital in our own innovative projects. Therefore, we should show them and offer them to prospective customers. No doubt that RАЕ has found its niche. None of the exhibitions, including IDEX in Abu Dhabi, can boast a similar niche.

– What are growth prospects for the Nizhny Tagil arms exhibition?

– The exhibition will go through quality changes; it will be more consumer-tailored. It is an exhibition, after (and during) which contracts are signed. Therefore, the work with customers needs improving: Marketing should be given professional attention; the selection of participants should be stricter, etc. Previously, as you may remember, we could showcase artisan craftwork and farm products. This year, RAE organizers are turning down applications of those whose products do not fit into the format of the specialized exhibition. We do not intend to belittle accomplishments of farmers, but we need a precisely selected audience.

The forum part of the exhibition will also be expanded. At the exhibition that brings together professionals not only from Russia, but also from other countries it makes sense to discuss both industry-related problems and inter-state relations. This business component of RAE will be given close attention.

The interview was conducted by Vladimir Terletsky