Meeting with Rostec CEO Sergei Chemezov

President of Russia Vladimir Putin: Good afternoon. Mr Chemezov, you have reviewed the company's performance for the past year. Let us begin with that.

Rostec CEO Sergei Chemezov Chemezov SergeiCEO of Rostec State Corporation : Yes, Mr President.

I would like to brief you on our performance in 2025. It was the last year of our 10-year [development] strategy [until 2025]. Overall, it can be said that we have successfully fulfilled it. This presentation shows that our revenue has quadrupled over the past 10 years, and our growth rate since 2015 has reached 14.8 percent.

We also increased civilian output. It grew by 45.5 percent in 2021, the highest result ever, following which it regrettably started to decline. The reason is that the volume of the state defence order increased, and so our civilian revenue decreased in relative terms, even though it continues to grow every year in absolute figures.

In 2025, we adopted the new Strategy until 2036, which is closely connected with the national economic development priorities. We take into account changes in external conditions. The corporation has identified its key goals as follows: a full and timely implementation of the state defence order, the growth of exports, the preservation of its leading positions in the field of military-technical cooperation, as well as the growth of civilian products. We have not forgotten about social indicators either, as well as digitalisation and robotisation of production.

Vladimir Putin: Have there been any changes in the field of robotisation?

Sergei Chemezov: We continue to buy new modern robotic machine tools and train our personnel to use them. In general, this is the underlying reason for the growth of labour efficiency.

Vladimir Putin: How much has it increased?

Sergei Chemezov: It has increased by 20.2 percent year on year.

Vladimir Putin: Seriously?

Sergei Chemezov: Yes.

Vladimir Putin: Are we talking about labour productivity?

Sergei Chemezov: Yes, it has increased, in part, due to the use of modern robotic equipment.

Vladimir Putin: It is a very good result. Once again, by 20 percent?

Sergei Chemezov: Yes, our output per employee has increased to 6.2 million rubles from 5.18 million rubles the year before.

As I have said, our revenue has increased by 25 percent to constitute slightly more than 4.5 trillion rubles. The number [of personnel] has increased by 4 percent.

At present, our personnel numbers 727,000. The corporation has become one of the largest employers, the second largest after Russian Railways. Wages are growing. The current wage is 123,400 rubles, an increase of 15 percent compared to last year. As I have said, our output has increased by 20 percent.

We are working together with the Defence Ministry to cut spending and increase productivity. I have shown you the figures. Our civilian revenue has grown to 1.12 trillion rubles.

Vladimir Putin: Very good. It is very good that civilian output is growing in conditions of the special military operation.

Sergei Chemezov: It is clear that we are, above all, defence enterprises, and our primary task is to fulfil the state defence order and to do everything possible to bring victory closer.

Our fulfilment rate for the state defence order remains extremely high: 99.5 percent overall, while the most in-demand items are being delivered at a 100 percent rate.

As for new products, over the past year we began supplying the troops with the new 300 mm Sarma multiple launch rocket system. Its key advantages are firepower, mobility, and, most importantly, crew protection, since the cabin is armoured. The system can be prepared for firing in just three minutes and can leave its position also within three minutes. It is highly mobile. A full salvo takes only 18 seconds.

We are also actively developing unmanned aerial vehicles. Last year, we introduced a new drone.

Vladimir Putin: For air barrage, correct?

Sergei Chemezov: Yes, with loitering munitions. The new X-wing Scalpel drone is highly manoeuvrable and can hit any vulnerable targets from virtually any angle.

In addition to loitering munitions, our Kalashnikov Concern has developed the new Kub-2 and Kub-10 systems. They have a longer range and a more powerful warhead.

We would also like to highlight the achievements of our aviators and aviation industry. Since 2022, production of combat aircraft has doubled. In 2025, United Engine Corporation and United Aircraft Corporation began test flights of the Sukhoi Su-57 equipped with a new-generation engine. This engine enables sustained supersonic flight without afterburners and has an increased service life, allowing the aircraft to operate longer between repairs.

As for civil aviation, last year we conducted the first flight of two light helicopters in a fully import-substituted configuration: the twin-engine Ansat and the single-engine Mil Mi-34. Both are equipped with the new Russian-made VK-650V engine

The Ansat remains one of our principal helicopters, widely used by the national air ambulance service. As part of the import-substitution programme, we replaced not only the engine, but also the electronics, control systems, and airframe structure. The helicopter is now manufactured using carbon fibre materials.

We expect serial deliveries to begin in 2027. We are currently completing certification test flights.

As for the Mil Mi-34, this light single-engine helicopter was developed to replace imported aircraft such as those produced by Robinson and Bell. Around 680 such helicopters are currently in operation across Russia, but their owners face ongoing difficulties with repairs and spare parts supplies. The new Mil Mi-34 was developed with support from the Ministry of Industry and Trade and we successfully launched it.

We have also completed certification testing for the Mil Mi-171A3 offshore helicopter, a machine that is in high demand within the oil and gas sector. Mass production will begin this year, and all certification procedures have already been completed.

We are currently delivering the first ones to Gazprom and then…

Vladimir Putin: The new Ansat also offers higher speed and increased payload capacity.

Sergei Chemezov: Yes. Firstly, it is lighter and is primarily used as air ambulances.

Vladimir Putin: Yes.

Sergei Chemezov: On to civil aircraft.

Significant changes have been introduced to the Tu-214 type certificate. This document makes it possible to operate the aircraft outfitted with new Russian-made systems. In particular, as part of import substitution efforts, the avionics and the collision avoidance and ground proximity warning systems have been replaced.

Until now, these systems were manufactured by just one US company. Today, we can produce these systems ourselves.

Vladimir Putin: It is imperative to ensure that the originally stated specifications are strictly adhered to.

Sergei Chemezov: Yes, we are working hard to get as close to them as possible. It is just that when you start developing something from scratch…

Vladimir Putin: I understand.

Sergei Chemezov: …it takes time to bring it up to standard.

Vladimir Putin: Still, that is what we should strive for.

Sergei Chemezov: Of course, we are doing just that.

We have ended up with an undeniably good Ilyushin Il-114-300 aircraft. We are almost done with the certification test flights. We hope to obtain a certificate this year. The aircraft has completed flights abroad to Kazakhstan, India, and the United Arab Emirates. It turned out very well and will replace Antonov An-24 and Antonov An-26. Those aircraft are obsolete, spare parts are unavailable, and repairs are practically no longer carried out. Therefore, we need to launch production as quickly as possible. It seats 66 passengers, slightly more than the Antonov aircraft.

Vladimir Putin: When will that become possible?

Sergei Chemezov: Starting next year. In fact, we will deliver the first aircraft already this year.

Vladimir Putin: Very good.

Sergei Chemezov: As for the MC-21, one-third of the certification flights have been completed. I hope that we will finish certification in the first quarter of next year and launch serial production next year as well.

Regarding the Sukhoi Superjet, 80 percent of the test flights have been completed, and we plan to obtain certification this year. We will begin serial production next year. By 2030, we plan to manufacture 36 MC-21 aircraft, 20 Superjets, and 12 Il-114 aircraft.

Alongside aircraft, we also engage in passenger transport, including the production of motor vehicles. In particular, in 2025, KAMAZ produced a low-floor trolleybus with an autonomous range of 30 kilometres, meaning it can operate using both overhead wires and an electric motor.

We also developed a large-class A5-generation electric bus with a domestically produced higher-capacity traction battery. Incidentally, the batteries are made by Rosatom. These are very good batteries, with an autonomous range of 110 kilometres.

A contract has been signed with Moscow for the delivery of 700 such electric buses by 2027. Today, you can see many of them in Moscow. They have been in service for many years now, 2,300 electric buses in all.

Vladimir Putin: An 85-passenger capacity?

Sergei Chemezov: That's right.

Also, since 2023 we have deployed driverless vehicles, autonomous KAMAZ lorries, which are successfully operating on the M-11 motorway, between Moscow and St Petersburg, and on the Central Ring Road. To date, they have covered around 6 million kilometres and transported about 732,000 cubic metres of cargo without a single accident or traffic violation.

Vladimir Putin: Yes, I am aware of that.

Sergei Chemezov: AvtoVAZ has come up with a promising new Azimut crossover.

Vladimir Putin: Is it a Lada?

Sergei Chemezov: Yes, a Lada. Production will reach 70,000 vehicles a year. I am confident that such vehicles will enhance the reputation of the domestic automotive industry among consumers.

To be continued.