Methods of countering unfair competition have been discussed at Rosoboronexport
09.12.2015 Press release

A meeting of the Economic and Information Security Section of Rosoboronexport’s (part of the State Corporation Rostec) Science and Technology Council (STC) has been held at the Company to discuss the issues of combating unfair competition in the sphere of military-technical cooperation (MTC), including the supply of counterfeit spare parts and materiel maintenance by unlicensed organizations.

“In addition to reputational risks, Russian manufacturers of high-tech products have been also suffering annual tangible financial losses due to counterfeit. This phenomenon is typical of the entire world. The aircraft operators, too, suffer due to the purchase of non-original spare parts or services for their installation from the same unlicensed Eastern European companies: the use of counterfeit parts in aircraft poses a safety danger, causing the aircraft to fall to the ground. After such so-called “repair”, any claims against us are irrelevant. Domestic manufacturers must not be responsible for the quality of products and services supplied and implemented without a Russian license,” said Valery Varlamov heading the Security Department at Rosoboronexport.

Proper cataloging of supplies is a component of the comprehensive system for countering production and distribution of counterfeit parts. Along with promoting thousands of unique Russian products abroad, Rosoboronexport carries out cataloging of the the entire range of spare parts, materials, tools, support and training equipment necessary to ensure the operation of military equipment. This nomenclature encompasses more than 3 million supply items, including those cataloged in line with the international rules and NATO standards. Owing to the accumulated database, Rosoboronexport employees have learned to quickly identify unauthorized resellers and suppliers of Russian products.

The strategy to combat unfair competition includes also such focus areas as raising awareness among the partners in military-technical cooperation and establishing a relevant organizational and legal framework for combating counterfeit. In particular, active work is underway to provide a stricter legal and regulatory framework for Russian companies offering repair services abroad for previously supplied weapons and military equipment without the appropriate license issued by Russia’s Federal Service for Military-Technical Cooperation.

The meeting of the Rosoboronexport’s STC section was attended by representatives of the State Duma of the Federal Assembly of the Russian Federation, Russia’s Federal Service for Military-Technical Cooperation, Rostec State Corporation, heads of the relevant departments of Russian defense enterprises, banks, information analysis centers and information security equipment manufacturers.