Rostec Plans Recovery Amid Ukraine Conflict's Impact on Defence Exports

Rostec, a Russian state conglomerate, reports a 50% drop in defence exports since 2022 due to prioritizing domestic orders amid the Ukraine conflict. Sanctions have complicated operations, but overall output remains unaffected. Rostec anticipates recovery with expanded production capacities to fulfill both domestic and global demands.

The Russian state conglomerate, Rostec, revealed a significant decline in defence exports, reporting a 50% reduction since 2022 as domestic orders took precedence amid the ongoing conflict in Ukraine. Despite this downturn, the company remains optimistic about a swift recovery.

Previously second only to the United States in defence exports, Russia saw volumes plummet as production shifted to meet the demands of its military, Rostec's Chief, Sergey Chemezov, explained to reporters. Sanctions have posed operational challenges across civil and defence sectors, yet the company's overall output remains stable.

Speaking at the Dubai Airshow, Chemezov assured that export recovery was imminent, highlighting expanded capacities and increased production as key factors. With a backlog of export orders over $60 billion, Rostec is poised to fulfill both military and global needs. Interest in the new Sukhoi Su-57 stealth fighter jet is robust, and efforts continue on the MS-21 airliner, slated to compete with Airbus A320 and Boeing 737 by 2026.

(With inputs from agencies.)