25 Years, 30,000 Contracts, 120 Countries: How Rosoboronexport Built a USD 230 Billion (RM 1.07 Trillion) Weapons Empire

(DEFENCE SECURITY ASIA) — Today marks the 25th anniversary of Rosoboronexport — the state-controlled arms exporter that rebuilt Russia’s military-industrial prestige after the collapse of the Soviet Union.

For Sergey Chemezov, the long-serving CEO of Rostec State Corporation and one of Rosoboronexport’s founding architects, this milestone represents not only corporate success but the return of Russia as a central actor in the global defence market.

Chemezov once led the company himself, serving as First Deputy Director General from 2001 to 2004 and as Director General until 2007, during which Rosoboronexport emerged as the dominant supplier of Russian military hardware worldwide.

Under his stewardship and continuing influence through Rostec, Russia’s export system transformed from a fragmented post-Soviet network into a consolidated powerhouse, representing over 700 industrial entities involved in aircraft, missiles, and advanced electronics.

He described Rosoboronexport’s journey as the story of resilience — a tale of how Russia’s defence sector regained markets once lost and expanded into new, strategically vital regions.

He noted that the company continues to adapt to the shifting realities of global politics, fortifying its position while discovering new opportunities and partnerships.

“Over the past quarter-century, Rosoboronexport has become one of the global leaders in the arms market, multiplying both its order portfolio and the volume of its deliveries many times over,” said Chemezov.

“The company has signed more than 30,000 contracts with international partners and ensured the export of defence products to over 120 countries, with a total value exceeding USD 230 billion (RM1.07 trillion),” he added.

It places Rosoboronexport firmly among the world’s top two arms exporters, alongside the United States.

In an era of sanctions and global realignment, such a figure underscores Moscow’s ability to sustain a complex defence-industrial ecosystem and maintain relevance despite Western containment efforts.

Each contract represents not only a sale of hardware but a projection of Russian influence into the security architecture of partner nations.

“Today, most of the systems offered by Rosoboronexport to its partners have sufficient operational experience in real combat conditions. Our customers study this experience and draw conclusions in favor of our products,” emphasizes Rosoboronexport Director General Alexander Mikheev.

Summary

1. Rosoboronexport, Russia’s state-owned arms exporter, marks its 25th anniversary with total global defence deliveries surpassing USD 230 billion (≈ RM 1.07 trillion), reaffirming its position among the world’s top two military suppliers.

2. Under Rostec CEO Sergey Chemezov’s leadership, the company has signed over 30,000 contracts with 120 countries, transforming from a fragmented post-Soviet entity into a consolidated export powerhouse spanning aircraft, missiles, and naval systems.

3. Rosoboronexport’s portfolio now includes flagship platforms such as the Su-30 and Su-35 fighters, Ka-52 and Mi-28 helicopters, S-400 air-defence systems, and next-generation stealth and hypersonic weapons, positioning Russia as a global defence-technology contender.

4. Despite Western sanctions, the company continues to expand across Asia, the Middle East and Africa through local production, joint ventures and military-technical cooperation, offering cost-effective, combat-proven alternatives to Western systems.

5. For Southeast Asia — particularly Malaysia, Vietnam and Indonesia — Rosoboronexport’s enduring presence provides both an opportunity for strategic diversification and a test of balancing defence ties amid an increasingly multipolar global arms market.

From Post-Soviet Disarray to Global Leadership

The 1990s were a bleak period for Russia’s defence industry.

Factories stood idle, engineers departed for civilian jobs, and former clients from Asia to Africa turned to Western manufacturers.

Rosoboronexport’s creation in 2000 brought coherence to this chaos by centralizing export authority under state control.

This single-window approach allowed Moscow to coordinate production, pricing, and promotion while ensuring alignment with its foreign-policy priorities.

Instead of ad-hoc transactions, Russia could offer long-term partnerships complete with training, maintenance, and joint production — an appealing proposition for developing nations seeking strategic autonomy.

Over two decades, this model evolved into a cornerstone of Russian diplomacy, binding countries across Asia, Africa, and Latin America to Moscow through military dependence and industrial collaboration.

The State Machinery Behind Rosoboronexport

Rosoboronexport operates as Russia’s sole authorized intermediary for the export and import of military and dual-use technologies.

It functions within the Rostec umbrella, reporting directly to the President of the Russian Federation, the Government, and the Federal Service for Military-Technical Cooperation.

This hierarchical oversight ensures that every contract is not merely a commercial transaction but a component of Russia’s national security agenda.

Such a structure grants Rosoboronexport unprecedented coordination power — enabling pricing standardization, global after-sales support, and state-level diplomatic negotiations.

Moreover, only government defence or law-enforcement entities can purchase from Rosoboronexport, a policy that preserves Russia’s reputation for controlling end-user certification and avoiding illicit diversion.

Expanding Portfolio of Modern Weapon Systems

The company’s export catalogue now encompasses virtually every domain of warfare.

Rosoboronexport’s best-known offerings include the Su-30SM, Su-35, MiG-29M, and MiG-35 fighter jets — aircraft renowned for their super-maneuverability and combat endurance.

In rotary-wing aviation, models like the Ka-52 “Alligator,” Mi-28NE “Havoc,” and Mi-171Sh continue to dominate battlefield helicopter exports.

Air-defence systems — S-300PMU-2, S-400 Triumf, Buk-M3, Tor-M2 and Pantsir-S1 — remain cornerstones of Rosoboronexport’s revenue and geopolitical footprint.

Maritime clients receive frigates, corvettes, and coastal-defence missile systems such as the Bastion and Bal, designed to deny access to naval opponents in littoral environments.

The emergence of unmanned systems like the Orlan-10 UAV and electronic-warfare complexes like Krasukha and Rtut-BM illustrates Russia’s drive toward network-centric capabilities.

By integrating digital command-and-control systems and AI-enabled targeting, Rosoboronexport positions itself for the next phase of modern warfare.

Adapting Under Sanctions and Isolation

The Western sanctions regime imposed since 2014 posed severe challenges to Russia’s defence trade.

Yet Rosoboronexport has adapted through financial innovation, expanding its use of national-currency settlements, barter agreements, and alternative banking channels with partners in Asia, the Middle East and Africa.

By pivoting away from SWIFT-based transactions, Russia has shielded its defence sector from financial exclusion.

It has also leaned on regional defence expositions like “Army Russia,” “MAKS,” and “Dubai Air Show” to demonstrate its technological relevance and forge new alliances.

With an estimated current order book of USD 55 billion (≈ RM 255 billion) and annual contract signings worth USD 12 billion, Rosoboronexport remains resilient despite an unforgiving environment.

Geopolitics and Arms Diplomacy

Defence exports under Rosoboronexport serve as a critical instrument of Russian statecraft.

Each major contract represents not merely an economic exchange but a strategic commitment anchored in long-term maintenance, training, and intelligence-sharing agreements.

In India, Rosoboronexport’s partnership in the Su-30MKI and BrahMos programs has created a generational bond that defines New Delhi’s defence ecosystem.

Egypt and Algeria have re-equipped their air forces with MiG-29M fighters and air-defence batteries supplied through the agency.

Vietnam, Indonesia, and Myanmar remain among Rosoboronexport’s most reliable Southeast Asian customers, fielding Su-30s, Kilo-class submarines and coastal-defence systems.

Across Africa, Russian helicopters and armoured vehicles equip more than 30 nations, deepening Moscow’s footprint in resource-rich zones.

By embedding its technicians, advisors and training teams within foreign forces, Rosoboronexport creates a web of dependence that extends Russia’s strategic influence far beyond its borders.

The Asian Outlook — Malaysia and Regional Trends

For Southeast Asia, Rosoboronexport’s 25-year milestone is a reminder that Russia remains a formidable player in the region’s defence landscape.

Malaysia was among the earliest customers of modern Russian aircraft, purchasing MiG-29N Fulcrums in the 1990s and Su-30MKM multirole fighters in the 2000s.

Those aircraft, equipped with French avionics and Russian missile systems, still form a key component of the Royal Malaysian Air Force today.

The cooperation extended beyond sales to maintenance and pilot training programs conducted with Russian advisors.

Rosoboronexport continues to offer Malaysia packages in rotary-wing aircraft such as the Mi-17 and Ka-27 series, as well as air-defence options including Pantsir and Tor systems.

For ASEAN as a whole, Russia offers a third path between Western and Chinese equipment, allowing regional air forces and navies to diversify their inventories.

This diversification is strategically vital for countries like Malaysia, Indonesia, and Vietnam that seek to preserve operational independence amid major-power rivalry in the South China Sea.

Industrial Partnerships and Technology Transfer

Rosoboronexport’s modern strategy goes beyond selling hardware.

It now prioritizes joint production, industrial offsets, and technology transfer to embed Russian systems within the local industrial base of client nations.

This approach has yielded fruitful cooperation with India and Vietnam, and similar offers are being extended to countries in Southeast Asia, the Middle East, and Latin America.

By localizing production, Rosoboronexport reduces logistical bottlenecks while enhancing political acceptability among buyers facing Western pressure.

Such co-production agreements also tie customers to Russia through decades-long maintenance and upgrade contracts — a strategy identical to the industrial ecosystems built by the U.S. and France in their own defence exports.

Competitive Pressures and Future Trajectory

Despite its strength, Rosoboronexport faces intensifying competition from emerging exporters like Turkey, South Korea, and China.

Ankara’s Baykar defence drones and Aselsan radars now challenge Russia in markets once considered exclusive.

Seoul’s KAI FA-50 and Hanwha K9 howitzer programs are rapidly expanding across Europe and Asia, backed by favourable financing.

Meanwhile, Beijing’s AVIC and CATIC offer cut-price alternatives like the J-10CE fighter and HQ-9 air-defence system.

To remain competitive, Rosoboronexport is betting on next-generation systems — the Su-57E stealth fighter, the Checkmate (Su-75) light tactical fighter, and the S-500 air-defence system — to sustain its relevance into the 2030s.

Its success will depend on how quickly Russia can streamline production and demonstrate operational reliability amid technological sanctions.

Defence Exports as Strategic Statecraft

Chemezov’s assertion that Rosoboronexport “has become one of the global leaders in the arms market” reflects a broader philosophy: for Russia, arms exports are an extension of foreign policy.

Every aircraft, missile, or radar sold under Rosoboronexport’s banner serves a dual purpose — strengthening the defence capability of a partner state and cementing Moscow’s influence within its security apparatus.

The USD 230 billion figure is not merely a financial achievement but a strategic statement of Russia’s enduring ability to shape the global security order.

As Western and Asian defence manufacturers compete for emerging markets, Rosoboronexport has positioned itself as a viable and independent alternative — offering flexible terms, customized integration, and less polit…and less political conditionality.

The model allows Moscow to offer advanced systems to countries often overlooked by Western suppliers — nations seeking deterrent capabilities without geopolitical strings attached.

By coupling affordability with reliable performance, Rosoboronexport has become a magnet for states pursuing rapid modernisation of their armed forces while maintaining strategic flexibility.

The Future of Russian Defence Exports

As it enters its second quarter-century, Rosoboronexport’s future will be defined by technological renewal, diversified partnerships and digital integration.

Projects such as the export-ready Su-57E stealth fighter and the fifth-generation Checkmate (Su-75) program represent Russia’s determination to compete in the high-end market segment traditionally dominated by Western manufacturers.

In the missile domain, systems like the S-500 Prometey, the hypersonic Kinzhal, and the naval Zircon missile family reinforce Russia’s reputation as a technological innovator capable of challenging the West’s aerospace dominance.

Meanwhile, the continued modernization of legacy platforms — from the T-90M main battle tank to the Mi-28NM helicopter — ensures steady export revenue in established markets.

Rosoboronexport’s ongoing participation in regional defence-industrial partnerships — including discussions on co-developing UAVs, electronic warfare suites, and smart munitions — underscores a long-term pivot toward collaborative innovation.

Strategic Significance for Southeast Asia

For Southeast Asia, Rosoboronexport’s resilience matters beyond the commercial domain.

As the region navigates the overlapping spheres of influence between the U.S., China, and India, Russia provides a balancing force through military-technical cooperation.

Malaysia, Vietnam, and Indonesia all benefit from having a diversified supplier network that reduces strategic vulnerability to any single superpower.

In particular, Malaysia’s experience operating the Su-30MKM fleet offers valuable lessons in integrating hybrid avionics — combining Russian airframes with Western sensors — a rare interoperability achievement.

Vietnam’s Kilo-class submarines and Su-30MK2s continue to underpin its deterrence posture in the South China Sea.

Indonesia, meanwhile, maintains its interest in Russian rotary and missile systems, even as it expands ties with the West and South Korea.

Rosoboronexport’s willingness to offer local assembly and maintenance facilities has made Russian systems not only accessible but sustainable for regional forces with constrained budgets.

A USD 230 Billion Symbol of Strategic Continuity

Sergey Chemezov’s declaration that Rosoboronexport’s deliveries have exceeded USD 230 billion (≈ RM 1.07 trillion) is both a celebration and a signal.

It marks the endurance of Russia’s military-industrial complex amid sanctions, competition and geopolitical upheaval.

It highlights how Moscow has transformed its defence exports into instruments of diplomacy, industrial growth, and strategic outreach.

And it reflects a broader truth: in an increasingly multipolar world, arms exports are as much about influence as they are about economics.

As Rosoboronexport steps into its next 25 years, its challenge will be to sustain growth through innovation, partnerships, and adaptation to a changing technological landscape.

For countries like Malaysia and its ASEAN neighbours, the agency’s evolution represents both opportunity and caution — access to advanced systems, but also exposure to new strategic entanglements.

One thing is certain: Rosoboronexport’s story is far from over.

Its quarter-century journey — from the ashes of post-Soviet collapse to commanding a USD 230 billion export empire — embodies the resurgence of Russian state power itself. — DEFENCE SECURITY ASIA