Russian Government Eyes Centralized Defense Bearing Product

Russian Government Eyes Centralized Defense Bearing Production The Russian government, via its Rosboronexport arm, is advocating a return to centralized control of R&D and production assets related to bearing manufacturing. Rosboronexport, a state-run agency, is the only organization in Russia allowed to handle imports and exports of defense-related and dual-use products, including many types of bearings. In 2006, the U.S. Government sanctioned Rosboronexport for supplying arms to Iran; it is now being absorbed into another state agency, Russian Technology Corp. Currently, Rosboronexport's proposal includes only state-controlled defense-related bearing manufacturing via the machine building sector. But it reflects a larger factor, the strengthening movement back toward communist-era centralized asset control -- particularly assets and natural resources considered internationally strategic or defense-related. Russia recently moved to take over and create two state-run manufacturing sectors, one for building aircraft and the other for building ships. In July, the Industry and Energy Ministry proposed setting up a government-controlled conglomerate to oversee all advanced machine building. By establishing the State Bearing Plant Project, Rosboronexport said the country's closely-controlled machine building sector will be in a better position to close the gap between Russian products and the rest of the world's more advanced bearings and related technologies. No timetable was given for the project, or if it may already be in place. The key private player in the Russian bearing market is European Bearing Corp., which has 37% market share, including a state rail bearing contract worth USD $100 million per year, 98% of the high-precision aviation market, and 95% of the overall rail market.