JSC Rosoboronexport (ROE; Russian: AO Рособоронэкспорт, Rosoboroneksport) is the sole state intermediary agency for Russia's exports/imports of defense-related and dual use products, technologies and services. The Rosoboronexport Federal State Unitary Enterprise (FSUE) was set up in 2000 by a Decree of the President of Russia and is charged with implementation of the policy of the State in the area of military-technical cooperation between Russia and foreign countries. In 2007, the enterprise was re-registered as Rosoboronexport Open joint-stock company (OJSC). In 2011, Rostekhnologii non-profit state corporation acquired 100% of Rosoboronexport OJSC. The official status of Rosoboronexport guarantees the support of the Russian Government in all export operations. The Rosoboronexport State Corporation is exclusively entitled to supply the international market the whole range of Russian armaments officially allowed for export. Rosoboronexport is ranked among the operators in the international arms market. The status of a state intermediary agency provides the corporation expanding and strengthening long-term cooperation with foreign partners. Rosoboronexport presently cooperates with Selex ES of Italy, Navantia of Spain, Thales Optronics of France and others. India is a major customer, other leading customers include China, Algeria, Syria, Vietnam, Venezuela and recently Iraq.
History Rosoboronexport is a legal successor of the state arms exporters which existed in the ex-USSR and present-day Russia. A state intermediary agency in the military-technical area was first created on 8 May 1953, when the General Engineering Department within the Ministry of Internal and Foreign Trade of the USSR was founded in accordance with the decision of the Soviet Government. With the scope of military industrial complex expanding, a number of new specialized export agencies were set up. By the late 1990s, there were two state intermediary companies in the country, Rosvooruzhenie and Promexport. On 4 November 2000, the two state-owned companies were merged by Decree No.1834 of the Russian president, establishing the Rosoboronexport Unitary enterprise as the sole state intermediary agency for Russia's military exports/imports. In 2005 Rosoboronexport took over AvtoVAZ. This acquisition has been claimed to be motivated not only economically but also politically as preparation to revive Russia's largest car maker. This was supposed to raise support for Kremlin elites in 2008 Russian presidential election. The company ownership was taken over despite Rosoboronexport did not own any shares of the AvtoVAZ. Action was supported by 300 police officers during extraordinary general meeting to enjoy peaceful transition. No objections was raised by other parties, including the official shareholders. In January 2006 Putin defended take over, saying "The enterprise is in a bad way and if a state structure goes in as crisis manager to try to improve the situation, then that is no bad thing." On 4 August 2006, the Bush administration imposed sanctions on Rosoboronexport accusing it of supplying Iran in violation of the United States Iran Nonproliferation Act of 2000. The Russian defense ministry said the move reflected U.S. annoyance at arms sales to Venezuela. Rosoboronexport was prohibited from doing business with the Federal government of the United States from 2008 until 2010, when the U.S. lifted such sanctions in response to Russian support for a UN resolution concerning Iran's nuclear program. Rosoboronexport obtained an 66% stake in VSMPO-AVISMA during October 2006 and in November 2006 Sergey Chemezov became chairman of VSMPO-AVISMA. On 19 January 2007, Russian president Vladimir Putin signed a decree making Rosoboronexport responsible for all arms exports. It was reported that Rosoboronexport was to be folded into a state holding company called Rostec by the end of the year 2007.
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