ROSOBORONEXPORT State Corporation MOVING TO FULL COMPLIANCE WITH NATO CODIFICATION STANDARDS FOR THE MILITARY PRODUCTS SUPPLIED ABROAD NATIONAL CODIFICATION CENTRE FOR DEFENCE EXPORT PRODUCTS

Codification requirements in defence acquisition and supply procedures in Russian Federation Russian MoD procurements MoD of Russia C O D I F I C A T I O N R E Q U I R E M E N T S Russian military export supplies ROSOBORONEXPORT Foreign customers of the Russian military equipment from more than 60 countries over the world Total nomenclature ~ 3 000 000 items + Efficient materiel supply management system required for military equipment support is in the centre of attention of various Russian organizations involved in this process. One of the main directions of works in this area is reducing inventory by exact and unambiguous items of supply identification on the basis of codification. Codification requirements imposed when materiel is procured for the needs of the Russian Ministry of Defence. Codification requirements are usually included in contracts for procurement of the Russian defence products by foreign customers. Rosoboronexport State Corporation is acting as the sole Russian state intermediary agency for export and import of military and dual-purpose products, technologies and services. It carries out programmes of military-technical cooperation with more than sixty countries of the world and does not only supply end military items, but also provides their logistic support, first of all spares support. The amount of materiel nomenclature maintained is about 3 million items. Exact identification of the materiel has always been in the focus of Rosoboronexport's activities. Codification works are also performed in favor of the other Russian state customers of defence products, for example, Ministry of the Interior, Ministry of Emergency Situations and others. At present all the above activities are integrated within the Russian Federal Cataloguing System of products for state needs. Other procurements for state needs Ministry of the Interior EMERCOM of Russia … RUSSIAN FEDERAL CATALOGUING SYSTEM OF PRODUCTS

Specifications Drawings Concept of codification process within the Russian Federal Cataloguing System Customers inside Russia (MoD, Ministry of the Interior, …) Use of Russian specific rules and specifications for codification of Items of Supply: National list of approved items names Uniform Qualifier IoS (EKPS) Russian specific IoS description rules FNN (equal to NSN) is a key to interlink parts of codification data within Russian FSCP International rules for codification of Items of Supply (NATO Codification System) are applied: STANAG 3150, 3151, 4177 ACodP-1 ACodP-2, ACodP-3 Russian federal nomenclature number (FNN): 5340-57-110-3752 The Russian Federal System of Cataloguing in its part which is used by Russian internal state customers (MoD, Ministry of the Interior and others) corresponds to the NCS principles, but does not implement most of NATO codification rules, procedures, data requirements. The differences between Russian specific rules of codification for internal customers and NATO Codification System rules do not allow to interact with foreign customers within common NCS data environment. The differences, for example, refer to such important part of codification methodology as item names directory, item identification guides and master requirements directory. This is the reason for creating special part in the Russian Federal Cataloguing System which implements codification works to the benefit of foreign customers and in accordance with NATO Codification rules. Foreign customers Specifications Drawings Technical documents

Development of the national regulating basis for defence export/import products codification activities The order issued by the Russian Federal Service for Military Technical Cooperation of the Russian Federation, dated June 13, 2007, №40: “1. To authorize Federal State Unitary Enterprise “Rosoboronexport” as the directing agency for codification of export and import defence products supplied in military-technical cooperation. 2. State Corporation “Rosoboronexport” is hereunder to form in its structure a National Codification Centre for Defence Export Products…” Russian national standard GOST R 51725.5-2009 “Cataloguing of defence export products” is adopted in 2009. It determines the rules and procedures of defence export products codification. Translation into English of GOST R 51725.5-2009 is published at our web-site www.codification.rusarm.ru At the end of 2006 we started to perform this task. The first normative document, which establishes the procedure for the working body formation performing NATO standards cataloging, was the Order of Federal Service on Military Technical cooperation of Russia № 40 from June 13 in 2007. This order defines “Rosoboronexport” as the organization responsible for creating the system of defence export/import products and requires forming National Codification Centre For Defence Export Products. With the issuance of the order to begin operation of the Centre. Next regulatory document was GOST R 51725.5-2009, developed by the Centre and submitted “Rosoboronexport" for approval by Federal Agency “Rostechregulirovanie”. The standard defines the rules and procedures for codification the export of military products, as well as dual-use goods. Thus, these two main normative documents establish fully legitimacy of the National Codification Centre For Defence Export Products.

Codification of the military export products: on the way to the next level of participation in NCS Federal Cataloguing System of Russia NATO Codification System Organization Technology Standards Information support National Codification Centre for Defence Export Products (Rosoboronexport) Taking into account current state of Russian Cataloguing system with its division into two parts which serve accordingly for internal and external customers of products Codification Centre of Rosoboronexport constitutes a basis for transition of the Russian Federation to the use of NATO codification standards to the fullest extent . Basic components of the transition process, which is provided by Rosoboronexport Codification products are: - organization of codification works in accordance with NATO Codification rules and principles; - implementation of NATO codification technology with adaptation to the Russian legislation and organization of materiel support; - development of standards and normative documents promoting introduction of NCS rules within Russian defence industry; - performing the whole complex of works for creation and maintaining information infrastructure for codification (on the basis of codification tool MC Catalogue Order of Federal authority for creation of the Centre (July, 2007) Russian State Standard GOST R 51725.5-2009 “Cataloguing of export products” Rosoboronexport’s corporate regulations for the activity of the Centre 5

Structure of the National Codification Centre for of Defence Export Products State Corporation “Rosoboronexport” Selling Departments Functional Departments Information Technologies (IT) Department NATIONAL CODIFICATION CENTRE FOR DEFENCE EXPORT PRODUCTS IT Divisions Section 1: Supplies Database of Defence Export Products Section 2: Codification IoS Section 3: Integrated Logistic Support Maintaining Data Base of Defence Export Products; Preparing lists of items of supply to be codified; Fulfillment of codification works; Interaction with foreign NCBs, AC/135, NAMSA, TRICOD WG, PACS, AC/327; Generation and maintenance of Master Catalogue of Items of Supply for Defence Export Equipment, as well as its distribution to entities concerned; FUNCTIONS

2007-2010 Cooperation with Russian federal bodies on codification Interaction with the Federal Cataloguing Centre: development of the Russian versions of NATO handbooks and classifiers; translation into Russian language and adaptation of ISO 8000 and ISO 22745 standards. Interaction with Cataloguing Centre of the Russian MoD: exchange of codification data related to the current codification projects of Rosoboronexport development of methodology for building-up consistent data structure of the Federal catalogue of items of supply as regards internal and external users. 2007-2010 According to the Russian legislation the international data exchange about items of supply to military goods concerns area of military-technical cooperation. The Russian federal law number 114 gives such right only to the authorised organisations, so-called subjects of military-technical cooperation. Rosoboronexport State Corporation is acting as the sole Russian state intermediary agency for export and import of military and dual-purpose products, technologies and services. It carries out programmes of military-technical cooperation with more than sixty countries of the world. Therefore according to the Russian legislation our centre as division Rosoboronexport, it is authorised by Federal service on military-technical cooperation on performance of codification of exported and imported military production and the international data exchange about items of supply with the foreign National Codification Bureau. In Russia our centre co-operates with manufacturers of military equipment, the codification centre of the Ministry of Defence, the Federal centre of cataloguing. According to the governmental order of Russia from 26.01.2000 number 26 Federal centre of cataloguing is responsible for preparation of standards and projects of standard documents in the field of cataloguing and development of methodology of works on cataloguing. According to this governmental order the Сodification Centre Russian Ministry of Defence performs works on cataloguing of items of supply on the classes fixed to it and develops corresponding sections of the national catalogue

Codification with the use of MC Catalogue software tool (AURA s. r. o Codification with the use of MC Catalogue software tool (AURA s.r.o. , Czech Republic) Federal Cataloguing Centre MC Catalogue Server External MC Catalogue Server Internal Cataloguing Centre of Russian MoD Internet System Administrator National Codification Centre for Defence Export Products Manufacturers This slide outlines codification process performed by Rosoboronexport with the use of MC Catalogue tool. To ensure correspondence of performed codification works to NATO standards our Codification Centre is procuring certified software MC Catalogue designed by AURA company (Czech Republic). This WEB-based software provides information integration of the Centre with its suppliers of technical data – Russian manufacturers and design organizations as well as with foreign customers which use the data. To provide for information safety the technological codification complex MC Catalogue included two contours: external and internal. The external contour is destined for filling forms by IoS suppliers after the conclusion of corresponding contracts with "Rosoboronexport". Codification is carried out through WEB the interface with authorization and access of the Supplier only to the protected section. The internal contour is intended for carrying out of the procedures connected with cataloguing above all set of subjects of supply and formation of lists of not catalogued samples for work with NCB to destination NSN (FNN). When experts ended of preparation of initial data the group of support of the catalogue unloaded data from an external contour on external carriers. External carriers are checked by managers on safety and transferred to an internal. Main Supplies Database of Rosoboronexport Foreign customers

EXAMPLES OF CATALOGUING PROJECTS IMPLEMENTED BY ROSOBORONEXPORT Aircraft SU-30МКМ IoS quantity: 1000 2007 - 2008 Reference method of identification Air Cushion Landing Craft project 12061E «Murena-E» IoS quantity: 2800 Anti-tank missile complex “Kornet” IoS quantity: 300 2009 - 2010 Full descriptive method of identification Helicopter Mi-35М IoS quantity: 2500 Portable Air Defense Missile System «Igla-S» IoS quantity: 250 This slide shows examples of codification works performed recently by the Codification Centre of Rosoboronexport with the use of MC Catalogue codification tool. At the first stage of works performed in accordance with NCS standards mainly a reference method of identification was used. Since 2009 a full descriptive method of identification is used.

Promoting international codification principles in Russian industry Training special courses on codification for the personnel of manufacturing and designing enterprises provided; training of the National Codification Centre for Defense Export Products staff on the use of MC Catalogue. special training of the personnel of industrial enterprises on the use of MC Catalogue codification tool (preparing raw codification data). Seminars and conferences 21.08.2008 – Conference on integrated logistic support and codification export defense products was held in Moscow; 30.09-01.10.2009 – 10th Conference on codification was held in Korolev city near Moscow. Our centre gives the big efforts to personnel preparation. Last year we have spent four educational seminars for the enterprises concerning preparation of initial data for codification and working out of electronic catalogues of item of supply. At these educational seminars was present more than eighty experts of the Russian industry. Ten employees of our Codification Centre were trained and have received certificates from software developer MC Catalogue of AURA company.

Codification conferences in Russia – communication and headway media Codification conferences are held on a regular basis in Russia organized by Federal Cataloguing Center with the participation of ROSOBORONEXPORT Codification conferences have been held since 1999; Representatives of AC/135 and NAMSA have attended the conferences as guests (R. Maison, J.Clark, M.Pergolesi, D.Lampron, G.Vergnerie, G.Bond); Representatives of foreign NCBs have participated in the Russian conferences to share experience (UK, USA, Germany, France, Italy, Belgium, Hungary, Czech Republic, Poland, Slovakia, Republic of Korea); Hundreds of delegates represent Russian industry and governmental bodies in the conferences; As usual, during the conferences meetings are held between representatives of AC/135, NAMSA and NCBs and top managers of Rosoboronexport. Besides we will organise conferences on cataloguing questions. These conferences cause the big interest as in Russia, and abroad. In October of last year we have organised tenth conference on codification. In total representatives of ten countries have taken part in Conference work, including Russia, Armenia, Belarus, Ukraine, the Great Britain, Republic Korea, Slovakia, the USA, France, Czechia. 2003 2009 2007

A meeting was held between AC/135 and Rosoboronexport on Transition of Russia to Tier 2 – the point of discussion at the meeting between AC/135 and Rosoboronexport A meeting was held between AC/135 and Rosoboronexport on September 29, 2009 in Moscow within the frame of 10th Codification conference Basic points of discussion: Codification activity of Rosoboronexport implementing NCS standards; possible procedures for Russia to achieve Tier 2 level of NCS (as regards military export products) Rosoboronexport State Corporation has carried out the analysis of the current state of works on military export products codification and considered feasibility of information integration with NCS including maintaining data about Russian items of supply in NMCRL. As a result a proposal was put forward to initiate activities on Tier 2 transition. Taking the opportunity of AC/135 representatives visit to Moscow a meeting was held in Rosoboronexport with AC/135 Chairman G.Bond and G.Vergnerie (NAMSA) about Tier 2 transition of Russia. Participants of the meeting considered some problem points related to codification of the Russian origin military products by NCS countries and incorporation of resulting codification data into NMCRL. In the conclusion of the meeting the parties agreed that Tier 2 transition of Russia with regard to codification of military export products is feasible and this task can be performed by series of practical steps of Russia and AC/135 conjointly. Conclusion of the meeting Parties agreed to follow series of practical steps toward Tier 2 transition of Russia represented by National Codification Centre for Defence Export products of Rosoboronexport State Corporation 12

AC/135 Sponsorship Program: transition to TIER 2 Gilles Vergnerie (NAMSA) made presentation at the 10th Codification conference regarding Tier 2 transition “… country which has an important industry and has to export materiel should find benefits in getting to the Tier 2 level” Important issues of the presentation Benefits of Tier 2 level of participation Tier 2 country – becomes a full member of NCS community Two ways data exchange Tier 2 administrative needs Tier 2 compliance tests procedure Responsibilities of Tier 2 country with respect to NMCRL data At the conference an interesting presentation was made by G.Vergnerie about Tier 2 level of participation in NCS as well as procedures of transition to this level. In his presentation G.Vergnerie mentioned benefits of Tier 2 level for the countries having powerful military and industrial potential, particularly for Russia. G.Vergnerie presented information about formal procedure of Tier 2 transition. This presentation was in line with topics of discussion between Rosoboronexport and AC/135 and also was very useful for all of the Russian participants of the conference. Presentation of S.Arnett, Chief of US NCB, followed the topic of worldwide extension of NCS principles and the necessity to increase effectiveness of codification processes. S.Arnett presented information about the activity of NCS Modernization Working Group and migration to methodology to be implemented in accordance with ISO 22745 and ISO 8000 standards. Presentation of S.Arnett were of great interest to Russian industry representatives which usually have a lot of questions regarding implementation of codification procedures in the development and manufacturing processes. Chief of US NCB Steven Arnett presented information about NCS Modernization Working Group and ISO 22745 & ISO 8000 standards

Cooperation in codification area between Rosoboronexport and Slovak Republic A meeting was held between Slovak NCB and Rosoboronexport on September 29, 2009 in Moscow within the frame of 10th Codification conference Basic points of discussion: Cooperation in codification data exchange with respect to Russian military equipment supplied to Slovak Republic; Conclusion of bilateral agreement on codification Following the negotiations carried out earlier between Codification Centre of Rosoboronexport and Slovak NCB the final coordination of codification agreement was held during the conference. The agreement on cooperation in codification area between Rosoboronexport and Slovak NCB was signed. This agreement defines mutually beneficial conditions for codification of the Russian military equipment supplied to Slovak Republic as well exchange of codification data. Results of the meeting: Agreement for cooperation in codification area was signed between the parties 14

Different countries – various implementation of national codification systems within consolidated NCS community Representatives of Slovak NCB gave descriptions of their national codification System at the conference NCB structure & organization Slovakia  Codification process, interaction with suppliers, NCBs, MoD  Codification data: tools and maintenance procedures At the conference Slovak NCB made presentations about national codification systems: development of the system, organization of codification works, etc. The presentations of Slovak NCBs were very interesting for the Russian audience.  Parameters of Slovak codification data in NMCRL

Working up necessary actions for Russian Federation to carry out Tier 2 transition Discussions during the 10th Codification conference showed that harmonization of the Russian Federal Cataloguing System with NSC rules is essential and Tier 2 level for military export products is a pressing task What is to be done for Tier 2 (within Russia) List of actions and schedule (done) Package of documents: formal, technical (in progress) Financial program (in progress) Getting approval on different levels of governance (in progress) Organizations engaged in the process (from the Russian side) Federal authorities Federal Service for Military Technical Cooperation Federal Agency for technical regulation Ministry for Foreign Affairs Rosoboronexport State Corporation As it was agreed at the meeting with AC/135 a program for Tier 2 transition has been prepared by Rosoboronexport. Current state of the works in this area is presented on the slide. The activities are being performed mainly by Codification Centre of Rosoboronexport with participation of federal authorities concerned which render assistance in taking decisions at appropriate level of management.

Integration of codification data into supply support automated system Development of special software providing data exchange between MC Catalogue and Corporate automated system of materiel supply support. MC Catalogue Server Rosoboronexport Corporate automated system Provisioning lists Codification management software (MC Catalogue) MCC User Codification data MCC User MCC User

Future plans for integration of National Codification Centre of Defence Export Products into NATO Codification System Development of that part of the Russian Federal System of Cataloguing which response to NATO Codification system rules through the activities of the National Centre for Codification of Military Export Products in «Rosoboronexport». Promoting descriptive method of items identification according to ACodP-1 rules as the basic technology for codification Negotiations with AC/135 and NAMSA about acceptance of the military export codification, performed by Rosoboronexport, to the higher level of participation in the NCS. Development of information infrastructure for codification data exchange through military products designers and manufacturers. Providing Russian industry personnel training. On a slide our plans for today and for the future are presented.

ROSOBORONEXPORT State Corporation NATIONAL CODIFICATION CENTRE FOR DEFENCE EXPORT PRODUCTS Welcome to cooperation ! 18/1, Ovchinnikovskaya nab., Moscow 115324, Russian Federation Tel.: +7(495) 950-9133 E-mail: rv0508@post.rusarm.ru Web: www.codification.rusarm.ru or www.roe.ru 19 19