Russian Helicopters Deliberately Excluded from the Annual Defense News Top 100 List

July 27, 2017
Defense News published a new annual Top 100 Defense Companies list for 2016, which did not include Russian Helicopters. The Russian Helicopters group plans to grow the order book to 500 vehicles in 2017.

The fact that the Russian Helicopters group is not included into the rating of the world’s major defence manufacturers compiled by the US periodical Defense News is an example of unfair competition and information manipulations aimed at diminishment of the position of one of the leading global helicopter manufacturers, said Igor Korotchenko, director of the Centre for Analysis of World Arms Trade (CAWAT) to RIA Novosti on Wednesday.

In 2017, Russian Helicopters signed contracts for the total amount of 18.2 billion rubles.

On Tuesday, Defense News published a new annual Top 100 Defense Companies list for 2016, which did not include Russian Helicopters.

“A reasonable question comes up: how could it happen that the Russian Helicopters group which had steadily been on the list of 30 major global defense companies for the previous five years and ranked number 25 in the Top 100 Defense News rating last year suddenly dropped out of it?” said Korotchenko.

The Russian Helicopters group plans to grow the order book to 500 vehicles in 2017.

The director of CAWAT recalled on this occasion that, according to the IFRS statements of the group, the 2016 revenue of Russian Helicopters from sale of military products amounted to USD 2,995 bn, the total revenue was USD 3,633 bn, and the share of military products in the total revenues was 82%. "Therefore, the Russian Helicopters group should be among the first 30 companies on the Top 100 global defense companies list, between the US company Bechtel and the British company Backbock," commented Korotchenko.

Evidently, the expert went on, the whole situation is created to save the image of western helicopter manufacturers which have recently lost several major tenders in a number of countries which preferred the products of Russian Helicopters.

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According to the Defense News rating, for the third consecutive year, Almaz – Antey Corporation has been ranking 11th, the highest position among the Russian companies; last year the company earned USD 7.4 bn. The 14th position is taken by United Engine Corporation (plus two lines to the rating of last year, USD 5.6 bn military revenues). The last one among the top three Russian companies is Tactical Missiles Corporation which ranks 32nd in the global list (plus five lines to the rating of last year, USD 2.8 bn).

The leader of the rating is Lockheed Martin (the defense revenues of USD 43.4 bn, the position did not change during the year), Boeing ranks second (USD 29.5 bn, the position did not change), BAE Systems ranks third (USD 23.6 bn). Defense News issues annual ratings of global defense companies using information from public sources, annual statements of companies and data directly provided to it by companies.

PJSC Rostvertol is a manufacturing facility owned by the Russian Helicopters Holding Company. PJSC Rostvertol manufactures a wide nomenclature of the Mi helicopters, carries out maintenance and modernization of helicopters, supplies spare parts, and offers services. As of now, PJSC Rostvertol is serially manufacturing the Mi-28NE “Night Hunter” advanced attack helicopter, Mi-28UB (for the Ministry of Defence of the RF), Mi-28NE with dual controls (for foreign customers); the Mi-35M multifunctional transportation and combat helicopter; and the Mi-26, Mi-26TC, and Mi-26TC multifunctional helicopters, unrivaled in terms of their carrying capacity. The enterprise is part of the Rostov regional office of the Russian Engineering Union.

JSC Russian Helicopters (part of Rostec State Corporation), is one of the world leaders in helicopter industry, the only developer and manufacturer of helicopters in Russia. The holding company was established in 2007. The head office is located in Moscow. The holding company is comprised of five helicopter plants, two design bureaus, enterprises for production and maintenance of components, aircraft repair plants and a service company providing after-sales support in Russia and abroad. Among the buyers of the holding company's products are Defense Ministry of Russia, Ministry of Internal Affairs of Russia, EMERCOM of Russia, and other state customers, Gazprom Avia and UTair airlines, as well as major Russian and foreign companies. In 2016, the revenue of Russian Helicopters under IFRS amounted to RUB 214.3 billion, its shipments totaled to 189 helicopters.

Rostec State Corporation is a Russian corporation founded in 2007 to promote the development, production, and export of high-tech industrial products for civil and military purposes. It is comprised of more than 700 organizations, whereof 11 holding companies presently operate in the military-industrial complex, 3 organizations are in civilian industries, and more than 80 are direct control organizations. Rostec's portfolio includes famous brands such as AVTOVAZ, KAMAZ, Kalashnikov Concern, Russian Helicopters, VSMPO-AVISMA, Uralvagonsavod, etc. Rostec companies are located in 60 federal subjects of the Russian Federation and supply products to the markets of over 70 countries. In 2016, Rostec's consolidated revenues reached RUB 1,266 billion, its consolidated net income equaled RUB 88 billion, and the EBITDA was RUB 268 billion. The Corporation's average wage in 2016 was RUB 44,000. According to the strategy of Rostec, the main objective of the Corporation is to provide Russia with a technological advantage on highly competitive global markets. One of the key objectives of Rostec is to integrate a new technological mode and digitize the Russian economy.