READ INSIDE: SOLID TOWNS ADVANTAGES FOR SHIPBUILDERS Russian shipbuilders USC innovative housing on the world market program has started № 4 (17) 2013 FEATURE ONE: TRIUMPH OF STRATEGIC PARTNERSHIP Dear readers! The key feature in this issue of the United Ship- building Corporation’s magazine is dedicated to the event which is symbolic for Russia, India and world’s shipbuilding as a whole — the transfer of the Vikramaditya aircraft carrier to the customer. The significance of this unique project for our countries is discussed by its main participants, including vice-president of the United Shipbuilding Corporation Igor Ponamaryov, deputy director gen- eral of JSC Rosoboronexport Viktor Komardin, heads of core departments of Sevmash, dedicated design bureaus and partner enterprises. The feature articles go together well with materials covering other priority topics of our foreign military technical cooperation in the naval domain. Rec- ognised leaders in different segments of the world naval market – the Rubin Central Design Bureau for Marine Engineering, Almaz Central Marine De- sign Bureau, Severnoye Design Bureau, Zvezdochka Ship Repair Center, — share their experience and future plans. The magazine also publishes fragments of a new chapter from the re- edition (to appear soon) of the memoirs written by Alexander Terenov, a well-known submariner who participated in the transfer of nuclear-powered submarines of two generations to the Indian Navy. It also runs an article about a corporate housing construction programme of the United Shipbuilding Corporation, one of the largest initiatives of this kind in the Russian defence industrial complex, which will interest both present-day shipbuilders and their successors who will continue to fulfil the mission of building Russia’s Navy in the coming decades. Among the latter one will undoubtedly find characters of the closing article about the boat model-making laboratory of the Moscow Children and Youth City Palace, its enthusiasts and their plans deserving of all support. I wish you all good health, great successes and prosperity in 2014. Vladimir Shmakov President, JSC United Shipbuilding Corporation CONTENT 28 42 20 12 48 4_ SOLID ADVANTAGES 28_ AHEAD OF ITS TIME 48_ TOWNS FOR SHIPBUILDERS The interview with the USC Leading Russian submarine Large-scale construction of new Vice-President in charge of state developer improving existing comfortable housing is a major defense order (SDO) and military- submarine projects incentive designed to attract young technical cooperation (MTC) professionals to one of the key Igor PONOMAREV 34_ PARTNERS FOR CENTURIES sectors of defense industry Zvezdochka Ship Repair Center 12_ GOOD LUCK TO YOU, develops and improves 52_ A FREE PASS TO FUTURE VIKRAMADITYA! the close strategic relationship with The Moscow City Children’s (Youth) Triumph India Creativity Center of strategic partnership is ready to become the initial 38_ BY COMBINED EFFORTS platform for training 20_ WINGED POWER: faster THAN Experience and prospects of would-be shipbuilders SOUND, RIGHT ON target for cooperation between SPKB Ultramodern MiGs are the main and Indian Navy 56_ ISSUE WATCH combat power of the new aircraft carrier 42_ AVATAR: DIVINE Incarnation The home country for the legendary captain is on the way to building nuclear-powered Nautiluses «USC. STRENGTH Address e-mail: [email protected] AND POWER AT SEA» magazine 11/1 Sadovaya-Kudrinskaya, website: www.oaoosk.ru №4(17) 2013 Moscow,123242 Russia Published by USC JSС Tel.: +7 (495) 617-33 00 Fax: +7 (495) 617-34 00 President of USC — Vladimir Shmakov Remarks by President of USC rine will be floated off the oldest Rus- Vladimir Shmakov at the launching sian shipyard, which people in the Black ceremony of the Novorossiysk diesel Sea Fleet are so eager to get.” submarine (Project 636): I am glad it will be a whole range of low noise submarines, carrying powerful “It is a special day for people in Ad- missile and torpedo systems, sophis- miralty shipyards, designers in Rubin, ticated radio and sonar systems. The everyone in USC and representatives of new combat boats of Project 636 will the Navy. Today we are floating out the substantially boost the potential of the lead boat of Project 636 Novorossiysk. It Black Sea Fleet, reinforce defensive ca- is the first time in the past two decades pability and safety of Russia’s southern a modern combat, conventional subma- sea border. SHIPBUILDING HORIZONS 4 USC №4(17), 2013 SOLID ADVANTAGES Russian SHIPBUILDERS ON THE Global MARKET The interview with the USC Vice-President in charge of state defense order (SDO) and military-technical cooperation (MTC) Igor PONOMAREV r. Ponomarev, For example, Project 877EKM submarines, you are prob- which excellently proved themselves in the cus- - ably the first tomer’s navy, and Project 636 subs with the Club М vice president missile system, designed to attack ground and in USC’s history surface targets, were sold at that time. One can who supervises both SDO and MTC areas, i.e. also recall the Project 11356 frigate featuring domestic and export sectors. What are the ben- new technology, which excellently passed sea efits of such integration and its “pitfalls”? trials. That’s why export can safely be called a — Let’s start with the fact that we exported major factor of supporting the shipbuilding in- ships that had undergone testing in our Navy dustry in that period. back in the Soviet era. Then, when the Russian period arrived, we stopped building follow-on The main objective ships for our Navy and were forced to switch of the Corporation — precisely over to export orders. Export became a com- « the SDO & MTC division — is to apply ponent that maintained the domestic defense the achievements we have gained industry’s efforts to keep designing and develop- fulfilling the RF Ministry of Defense’s ing new weapons systems... orders and introduce them into — And preserving the capacity. the export systems designed for delivery to a foreign customer. — And preserving the operating, workforce and That is to make our equipment production capacity. Between 1991 and 2000, the more competitive when promoting export orders had helped the shipbuilding industry it in external markets». stay afloat and continue to implement new designs, new technologies and improved weapons systems. USC №4(17), 2013 5 SHIPBUILDING HORIZONS goods (with respect to after-sales service) taken at the June meeting of the MTC Commission became a true step forward. This is a backbone decision that will enable an integrated structure to directly engage in services, repair, and train- ing, bypassing the state intermediary agency, which, in turn, will significantly facilitate the relationship with a foreign partner in after-sales service area. The Corporation can act here as a link between the design bureau (designer) and manufacturer, define the technical policy, which will make it possible to operate these ships throughout their life cycle. In addition, the RF Ministry of Defense was tasked to prepare pilot unified life-cycle system projects. Thus, we can normally use our SDO experience also in pro- jects involving foreign customers. Since 2004, our Navy and the Russian Minis- Project 636 large The main objective of the Corporation – pre- diesel-electric try of Defense began ordering follow-on ships. submarine cisely the SDO & MTC division – is to apply the It is clear that the technology and weapons used achievements we have gained fulfilling the RF previously for foreign customers were trans- Ministry of Defense’s orders and introduce them ferred to ships for the domestic Navy. Example: into the export systems intended for delivery to the Navy ordered improved versions of Project a foreign customer. That is to make our equip- 636 submarines and Project 11356 ships. ment more competitive in external markets. Let me explain the difference between export and state defense order. — It is this aspect I’d like to talk about in There is a legal framework governing state more detail. We have been acting in the exter- defense order that encompasses the relevant nal arms market for long, for several decades. regulations and RF Ministry of Defense’s guid- But at present we are watching budget cuts in ance documents. And there is the law govern- a number of naval powers. Competition in the ing military-technical cooperation. Specifics of export market is sharply escalating. In this working under MTC and SDO are totally differ- context, what competitive advantages do we ent. These are two totally different areas of busi- have, how do we feel at these sites? And what ness in terms of establishing commercial and should be done to strengthen the advantages industrial activities. We work according to dif- and maybe try to somehow mitigate existing ferent legislative and regulatory documents. We disadvantages? have certain regulations covering internal orders — If we take today’s ratio between the SDO and quite different ones for work under MTC. Project 12418 and MTC structures, SDO accounts for around At the same time, there are common, similar missile boat 60-70% for our enterprises (in the aggregate for and related issues. For our ships, we use the same weapons and the same equipment (we ac- tually build the same ships) which we hand over to foreign customer. We develop new export configuration certificates and offer foreign cus- tomers new ships which are under series con- struction for the Russian Navy. I think that integrating the MTC and SDO is- sues in one organizational structure will benefit. Since we are well aware of the workload of our enterprises with SDO, we can regulate export orders, redistributing them between the plants within the Corporation. The overall vision of the situation in terms of the total workload of our enterprises and design bureaus allows us to wisely distribute the workload in order to re- ceive the most lucrative contracts in the future.