1 Introduction 1.1 What is this Report About? 1.2 Definitions 3.4.2 Russia is world's third largest defense spender 3.4.3 Russia allocated 4.4% of its GDP to defense in 2016 3.4.4 Russia is "highly affected" from acts of terrorism 3.5 Market Opportunities: Key Trends and Growth Stimulators 3.5.1 Space-basedC4ISR 3.5.2 Land-basedC4ISR 3.5.3 Transport Aircraft 3.5.4 Airborne-C4ISR 3.5.5 Multi-role Aircraft 3.5.6 Submarines 4 Defense Procurement Market Dynamics 4.1 Import Market Dynamics 4.1.1 The country's defense imports are low owing to a developed indigenous sector 4.1.2 Ukraine was the key defense supplier to Russia 4.1.3 Aircraft and engines were the key defense imports during 2011-2015 4.2 Export Market Dynamics 4.2.1 Russia's exports witnessed a decline during 2011-2015 4.2.2 India, China, and Vietnam are Russia's main defense equipment purchasers 4.2.3 Aircraft and ships account for the majority of Russia's defense exports 5 Industry Dynamics 5.1 Five Forces Analysis 5.1.1 Bargaining power of supplier: medium to high 5.1.2 Bargaining power of buyer: high 5.1.3 Barrier to entry: high 5.1.4 Intensity of rivalry: high 5.1.5 Threat of substitution: high 6 Market Entry Strategy 6.1 Market Regulation 6.1.1 Entry into defense sector is highly regulated 6.1.2 Market Entry Route 6.2 Key Challenges 6.2.1 Russian Government's aversion to Western defense technology 7 Competitive Landscape and Strategic Insights 7.1 Competitive Landscape Overview 7.1.1 Domestic industry in the process of consolidation for better focus and fund allocation 7.1.2 Defense sector is dominated by domestic firms, with no foreign presence 7.2 Key Domestic Companies 7.2.1 Sukhoi: overview 7.2.2 Sukhoi: products 7.2.3 Sukhoi: recent announcements and strategic initiatives 7.2.4 Sukhoi: alliances 7.2.5 Sukhoi: recent contract awards 7.2.6 Splav - overview 7.2.7 Splav - major products and services 7.2.8 Tactical Missiles Corporation: overview 7.2.9 Tactical Missiles Corporation - major products and services 7.2.10 Tactical Missiles Corporation - recent announcements and strategic initiatives 7.2.11 Tactical Missiles Corporation - recent contract wins 7.2.12 Almaz-Antey - overview 7.2.13 Almaz-Antey - Major Products and Services 7.2.14 Almaz-Antey - recent announcements and strategic initiatives 7.2.15 Almaz-Antey - alliances 7.2.16 Almaz-Antey - recent contract wins 7.2.17 United Aircraft Corporation - overview 7.2.18 United Aircraft Corporation - major products and services 7.2.19 United Aircraft Corporation - recent announcements and strategic initiatives 7.2.20 United Aircraft Corporation - alliances 7.2.21 KBP Instrument Design Bureau - overview 7.2.22 KBP Instrument Design Bureau - major products and services 7.2.23 KBP Instrument Design Bureau - recent announcements and strategic initiatives 7.2.24 KBP Instrument Design Bureau - recent contract wins 7.2.25 V.A.Degtyarev Plant - overview 7.2.26 V.A.Degtyarev Plant - major products and services 7.2.27 Kurganmashzavod - overview 7.2.28 Kurganmashzavod - major products and services 7.2.29 Kurganmashzavod - recent announcements and strategic initiatives 7.2.30 Kurganmashzavod - alliances 7.2.31 Kurganmashzavod - recent contract wins 7.2.32 Uralvagonzavod - overview 7.2.33 Uralvagonzavod - major products and services 7.2.34 Uralvagonzavod - recent announcements and strategic initiatives 7.2.35 Uralvagonzavod - alliances 7.2.36 Uralvagonzavod - recent contract wins 7.2.37 Izhevsk Mechanical Works - overview 7.2.38 Izhevsk Mechanical Works - major products and services 7.2.39 Izhevsk Mechanical Works - recent announcements and strategic initiatives 7.2.40 Irkut Corporation - overview 7.2.41 Irkut Corporation - major products and services 7.2.42 Irkut Corporation - recent announcements and strategic initiatives 7.2.43 Irkut Corporation - alliances 7.2.44 Irkut Corporation - recent contract wins 7.2.45 Irkut Corporation - financial analysis 7.2.46 Oboronprom Corporation - overview 7.2.47 Oboronprom Corporation - major products and services 7.2.48 Oboronprom Corporation - recent announcements and strategic initiatives 7.2.49 Oboronprom Corporation - alliances 7.2.50 Oboronprom Corporation - recent contract wins 8 Business Environment and Country Risk 8.1 Demographic and Social Stats 8.1.1 Total Rural Population (In Mn) 8.1.2 Total Urban Population (In Mn) 8.1.3 Number of Households (In Mn) 8.2 Economic Performance 8.2.1 GDP Per Capita, USD 8.2.2 GDP (current USD Bn) 8.2.3 Exports of goods and services (current USD Bn) 8.2.4 Imports of goods and services (current USD Bn) 8.2.5 Gross National disposable income (USD Bn) 8.2.6 Manufacturing Output (USD Bn) 8.2.7 Consumer price Index 8.2.8 Wholesale Price Index 8.2.9 LCU per USD (period average) 8.2.10 LCU per EUR (period average) 8.2.11 Lending Rate (%) 8.2.12 Deposit Rate (%) 8.2.13 Real Interest Rate (%) 8.2.14 Market Capitalization of Listed Companies (USD Billion) 8.2.15 Market Capitalization of Listed Companies (% of GDP) 8.2.16 Total Government cash surplus/deficit (LCU Bn) 8.2.17 Government cash surplus/deficit as % of GDP (LCU) 8.2.18 Goods exports as a percentage of GDP 8.2.19 Goods balance as a percentage of GDP 8.2.20 Services imports as a percentage of GDP 8.2.21 Services Exports as a percentage of GDP 8.2.22 Foreign direct investment, net (BoP, current US$ Billion) 8.2.23 Net Foreign direct investment as a percentage of GDP 8.2.24 International reserves, including gold (USD Billion) 8.3 Energy and Utilities 8.3.1 Total Conventional Thermal Electricity Net Generation (Billion Kilowatt hours) 8.3.2 Hydroelectricity Net Generation (Billion Kilowatt hours) 8.3.3 Nuclear Electricity Net Generation (Billion Kilowatt hours) 8.3.4 Total Conventional Thermal Electricity Installed Capacity (Million Kilowatts) 8.3.5 Total Electricity Exports (Billion Kilowatt hours) 8.3.6 Total Electricity Imports (Billion Kilowatt hours) 8.3.7 Proved Reserves of Natural Gas (Trillion Cubic Feet) 8.3.8 Total Petroleum Consumption (Thousand Barrels Per Day) 8.3.9 Crude Oil Proved Reserves (Billion Barrels) 8.3.10 Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts) 8.4 Infrastructure Quality and Availability 8.4.1 Rail lines (total route - km) 8.4.2 Air transport, freight (million ton-km) 8.4.3 Overall construction (US$ Million) 8.5 Minerals 8.5.1 Mining, Manufacturing, and Utilities Output (USD Bn) 8.6 Technology 8.6.1 Research and development expenditure (Local Currency Thousands) 8.6.2 Patents granted 8.7 Telecommunication 8.7.1 Telephone lines (In Mn) 8.7.2 Telephone Lines Penetration Rate (per 100 people) 9 Appendix 9.1 About SDI 9.2 Disclaimer

Table 1: Russian Defense Expenditure (US$ Billion), 2012-2016 Table 2: Russian Defense Expenditure (US$ Billion), 2017-2021 Table 3: Russian Defense Expenditure (RUB Billion), 2012-2016 Table 4: Russian Defense Expenditure (RUB Billion), 2017-2021 Table 5: Russian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2012-2016 Table 6: Russian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2017-2021 Table 7: Russian Defense Budget Split Between Capital and Revenue Expenditure (%), 2012-2016 Table 8: Russian Defense Budget Split Between Capital and Revenue Expenditure (%), 2017-2021 Table 9: Russian Capital Budget Allocation (US$ Billion), 2012-2016 Table 10: Russian Capital Budget Allocation (US$ Billion), 2017-2021 Table 11: Russian Capital Budget Allocation (RUB billion), 2012-2016 Table 12: Russian Capital Budget Allocation (RUB Billion), 2017-2021 Table 13: Russian Per Capita Defense Expenditure (US$), 2012-2016 Table 14: Russian Per Capita Defense Expenditure (US$), 2017-2021 Table 15: Russian Homeland Security Budget (US$ Billion), 2012-2016 Table 16: Russian Homeland Security Budget (US$ Billion), 2017-2021 Table 17: Russian Homeland Security Budget (RUB Billion), 2012-2016 Table 18: Russian Homeland Security Budget (RUB Billion), 2017-2021 Table 19: Benchmarking with Key Markets - 2012-2016vs. 2017-2021 Table 20: SDI Terrorism Index Table 21: Sukhoi - Major Products and Services Table 22: Sukhoi - Alliances Table 23: Sukhoi - Recent Contract Wins Table 24: Splav - Major Products and Services Table 25: Tactical Missiles Corporation - Major Products and Services Table 26: Tactical Missiles Corporation - Recent Contract Wins Table 27: Almaz-Antey - Major Products and Services Table 28: Almaz-Antey - Alliances Table 29: Almaz-Antey - Recent Contract Wins Table 30: United Aircraft Corporation - Major Products and Services Table 31: United Aircraft Corporation - Alliances Table 32: KBP Instrument Design Bureau - Major Products and Services Table 33: KBP Instrument Design Bureau - recent contract wins Table 34: V.A.Degtyarev Plant - Major Products and Services Table 35: Kurganmashzavod - Major Products and Services Table 36: Kurganmashzavod - Alliances Table 37: Kurganmashzavod - Recent Contract Wins Table 38: Uralvagonzavod - Major Products and Services Table 39: Uralvagonzavod - Alliances Table 40: Uralvagonzavod - Recent Contract Wins Table 41: Izhevsk Mechanical Works - Major Products and Services Table 42: Irkut Corporation - Major Products and Services Table 43: Irkut Corporation - Alliances Table 44: Irkut Corporation - Recent Contract Wins Table 45: Oboronprom Corporation - Major Products and Services Table 46: Oboronprom Corporation - Alliances Table 47: Oboronprom Corporation - Recent Contract Wins Figure 1: Russian Defense Expenditure (US$ Billion), 2012-2016 Figure 2: Russian Defense Expenditure (US$ Billion), 2017-2021 Figure 3: Russian Defense Expenditure (RUB Billion), 2012-2016 Figure 4: Russian Defense Expenditure(RUB Billion), 2017-2021 Figure 5: Russian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2012-2016 Figure 6: Russian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2017-2021 Figure 7:Russian Defense Budget Split Between Capital and Revenue Expenditure (%), 2012-2016 Figure 8: Russian Defense Budget Split Between Capital and Revenue Expenditure (%), 2017-2021 Figure 9: Russian Capital Budget Allocation (US$ Billion), 2012-2016 Figure 10: Russian Capital Budget Allocation (US$ Billion), 2017-2021 Figure 11: Russian Capital Budget Allocation (RUB Billion), 2012-2016 Figure 12: Russian Capital Budget Allocation (RUB Billion), 2017-2021 Figure 13: Russian Per Capita Defense Expenditure (US$), 2012-2016 Figure 14: Russian Per Capita Defense Expenditure (US$), 2017-2021 Figure 15: Russian Homeland Security Budget (US$ Billion), 2012-2016 Figure 16: Russian Homeland Security Budget (US$ Billion), 2017-2021 Figure 17: Russian Homeland Security Budget (RUB Billion), 2012-2016 Figure 18: Russian Homeland Security Budget (RUB Billion), 2017-2021 Figure 19: SDI Terrorism Heat Map, 2016 Figure 20: SDI Terrorism Index Figure 21: Benchmarking with Key Markets - 2012-2016 vs. 2017-2021 Figure 22: Defense Expenditure of the World's Largest Military Spenders (US$ Billion),2016 and 2021 Figure 23: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2016 Figure 24: C4ISRSpace-Based Market Size (US$ Billion), 2016-2026 Figure 25: C4ISRLand-Based Market Size (US$ Billion), 2016-2026 Figure 26: Transport Aircraft Market Size (US$ Billion), 2016-2026 Figure 27: C4ISR-Airborne Market Size (US$ Billion), 2016-2026 Figure 28: Multi-Role Aircraft Market Size (US$ Billion), 2016-2026 Figure 29: SSBN-Ballistic Missile Submarine Market Size (US$ Billion), 2016-2026 Figure 30: Russian Defense Import Trend, 2011-2015 (TIV values) Figure 31: Russian Defense Imports by Country (%), 2011-2015 Figure 32: Russian Defense Imports by Category (%), 2011-2015 Figure 33: Russian Defense Export Trend, 2011-2015(TIV values) Figure 34: Russian Defense Exports by Country (%), 2011-2015 Figure 35: Russian Defense Exports by Category (%),2011-2015 Figure 36: Industry Dynamics Porter's Five Forces Analysis Figure 37: Irkut Corporation - Revenue Trend Analysis (RUB Billion), 2010-2014 Figure 38: Irkut Corporation - Operating Profit (US$ Billion), 2010-2014 Figure 39: Irkut Corporation - Net Profit Trend Analysis (US$ Billion), 2010-2014 Figure 40: Total Rural Population (In Mn), 2016-2025 Figure 41: Total Urban Population (In Mn), 2016-2025 Figure 42: Number of Households (In Mn), 2008-2017 Figure 43: GDP Per Capita in USD, 2016-2025 Figure 44: GDP (current USD Bn), 2016-2025 Figure 45: Exports of goods and services (current USD Bn), 2004-2013 Figure 46: Imports of goods and services (current USD Bn), 2004-2013 Figure 47: Gross National disposable income (USD Bn), 2003-2012 Figure 48: Manufacturing Output (USD Bn), 2003-2012 Figure 49: Consumer price Index, 2016-2025 Figure 50: Wholesale Price Index, 2003-2012 Figure 51: LCU per USD (period average), 2016-2025 Figure 52: LCU per EUR (period average), 2016-2025 Figure 53: Lending Rate (%), 2003-2012 Figure 54: Deposit Rate (%), 2003-2012 Figure 55: Real Interest Rate (%), 2003-2012 Figure 56: Market Capitalization of Listed Companies, 2003-2012 Figure 57: Market Capitalization of Listed Companies (% of GDP), 2003-2012 Figure 58: Total Government cash surplus/deficit (LCU Bn), 2003-2012 Figure 59: Government cash surplus/deficit as % of GDP (LCU), 2003-2012 Figure 60: Goods exports as a percentage of GDP, 2005-2012 Figure 61: Goods balance as a percentage of GDP, 2005-2012 Figure 62: Service imports as a percentage of GDP, 2005-2012 Figure 63: Services exports as a percentage of GDP, 2005-2012 Figure 64: Foreign direct investment, net (BoP, current US$ Billion), 2005-2012 Figure 65: Net Foreign direct investment as a percentage of GDP, 2006-2012 Figure 66: International reserves, including gold (USD Billion), 2003-2012 Figure 67: Total Conventional Thermal Electricity Net Generation (Billion Kilowatt hours), 2002-2011 Figure 68: Hydroelectricity Net Generation (Billion Kilowatt hours), 2003-2012 Figure 69: Nuclear Electricity Net Generation (Billion Kilowatt hours), 2003-2012 Figure 70: Total Conventional Thermal Electricity Installed Capacity (Million Kilowatts), 2001-2010 Figure 71: Total Electricity Exports (Billion Kilowatt hours), 2003-2012 Figure 72: Total Electricity Imports (Billion Kilowatt hours), 2003-2012 Figure 73: The Proved Reserves of Natural Gas (Trillion Cubic Feet), 2005-2014 Figure 74: Total Petroleum Consumption (Thousand Barrels Per Day), 2003-2012 Figure 75: The Proved Reserves of Crude Oil (Billion Barrels), 2005-2014 Figure 76: Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts),2003-2012 Figure 77: Rail lines (total route - km), 2003-2012 Figure 78: Air transport, freight (million ton-km), 2003-2012 Figure 79: Overall construction (US$ Million), 2007-2014 Figure 80: Mining, Manufacturing, Utilities Output (USD Bn), 2003-2012 Figure 81: Research and development expenditure (Local Currency Thousands), 2001-2010 Figure 82: Patents granted, 2004-2013 Figure 83: Telephone Lines (In Mn), 2003-2012 Figure 84: Telephone lines Penetration Rate (per 100 people) 2003-2012

Sukhoi Splav Tactical Missiles Corporation Almaz-Antey United Aircraft Corporation KBP Instrument Design Bureau V.A.Degtyarev Plant Kurganmashzavod Uralvagonzavod Izhevsk Mechanical Works Irkut Corporation Oboronprom Corporation