Russian Weapons Industry Not Affected by U.S. Sanctions: Top Arms Manufacturer


Russia’s machine-building enterprise Uralvagonzavod (UVZ), which is part of the state-owned hi-tech corporation Rostec, is not affected by problems related to American sanctions against Russia, the company’s Chief Executive Officer Alexander Potapov told Kommersant.

“So far, we have not experienced any real problems. Sanctions keep us in a certain shape – I believe that this stimulates the work of our design team and promotes the development of

According to CEO, the company hasn’t had many problems with other companies, which under the U.S. measures, could be sanctioned themselves if doing business with Rostec or its subsidiaries.

“One transport company has said it would not buy our products, unwilling to become subject to sanctions, but after discussing it, it came to its senses. This is the way we work,” Potapov added.

In 2016, UVZ adopted a new development strategy until 2025.

“The main parameters that the strategy is based on is revenue growth of around 10% annually to reach about $4 billion by 2025. Obviously, we have two key areas – executing defense procurement order and civil production,” Potapov said. “The diversification program envisions a 50/50 ratio of civil and military production by 2030,” he added.

Speaking about global markets, the UVZ head said that a parity principle is envisaged for military products.

“We should not lag behind our competitors or those who are willing to tap our traditional markets, for example, our western partners. This is an issue we should solve, for example, we have been replaced in former Warsaw Pact countries, which is not good and we should regain this niche. Not long ago I went to an African country to find out that Serbia is successfully working there, which disappointed me: why not us? I gave instructions and we are going to regain this area,” Potapov told Kommersant.