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Rostec reports that defence exports have halved in the last 20 years as Russian orders dominate

Rostec, a Russian state-owned conglomerate, said that on Tuesday its defence exports had fallen by half since the year 2022 due to domestic orders becoming a priority in light of the conflict in Ukraine. However, Rostec expects a recovery within upcoming months.

Sergey Chemezov, Rostec's chief executive officer, told reporters that until 2022 Russia ranked second in the world in terms of defence exports after the United States. However the volume has dropped "because we had to supply the majority of our production to our own army".

He said that sanctions have caused problems in both the civil and defense sectors but they did not impact on overall production.

"I can assure you that we will begin to recover in the near term (with exports). "We have increased our production and expanded our capacity, so that we can not only supply our military, but also our partners," Chemezov stated, speaking at the Dubai Airshow.

Rostec reported to Russian state agencies in early November that the company's backlog for export orders exceeded $60 billion.

He said that Rostec is seeing a large demand for its fifth-generation stealth Sukhoi Su-57 fighter jet from several countries, but he did not give any details.

United Aircraft Corporation, a subsidiary of Rostec, continues to develop the MS-21 aircraft. It is set to replace the Airbus A320 in Russia as well as the Boeing 737. The MS-21 is expected to reach commercial use by 2026.

Chemezov stated that the MS-21 is undergoing flight tests, and that a smaller 140-seater version will be available within two years. (Reporting and writing by Federico Maccioni, Gleb Stolyarov, Editing by Joe Bavier/Guy Faulconbridge).

(source: Reuters)