History
On 23 November 2007, Russian president Vladimir Putin signed federal law No. 270 to establish a state corporation named Rostekhnologii, which was previously passed by the State Duma on 9 November and passed by the Federation Council on 16 November.[1][9][10][11][12]
On 10 July 2008, newly elected Russian president Dmitry Medvedev signed a decree that transferred 443 struggling enterprises to ownership by Rostekhnologii. Of these enterprises, 30% were in pre-crisis and crisis condition, 28 were in bankruptcy proceedings, 17 had no business operations, and 27 had lost part of their assets or faced a material risk of such loss, and in total they faced a debt of RUB630 billion. In addition, these enterprises had worn out fixed assets, dilapidated production chains, and poor management.[10][13]
After the acquisition, structural reforms were made, helping the enterprises emerge from their financial struggles with a 20–30% increase in production growth, five times the national average. Most of the profits were acquired by Rostekhnologii, which 80% of it was from 20% of Rostekhnologii's assets. The 20% included AvtoVAZ, KamAZ, the titanium monopoly VSMPO-AVISMA, and helicopter manufacturers Mil and Kamov. This in turn brought executives of some companies into conflict with each other, such as the case with Mil and Kamov, in which they refused to communicate with each other. As a result, Rostekhnologii had to work with the two companies so they can cooperate with each other.[14]
On 21 December 2012, Rostekhnologii rebranded itself as Rostec to make the corporation more open to the world. Rostec also featured a new logo, an open square symbolizing a window to the world and a focus frame, as well a new slogan "Partner in development" and implemented changes in its corporate governance structure.[10][15][16][17] The corporation spent $1.5 million for rebranding.[16] The corporate brand, which was launched in late 2012, is currently one of Russia's 15 most valuable brands and has a value similar to that of major companies such as Rosneft and Rostelecom.[18]
On 16 July 2014, as a result of Russian intervention in Ukraine and Russian annexation of Crimea, Rostec was one of the companies that was sanctioned by the Obama administration. Sergey Chemezov, then CEO of Rostec, was one of the individuals targeted by the United States (US) and the European Union (EU), Chemezov's visa was banned and assets frozen by the EU. Rostec's access to US debt markets was also limited. Rostec was forced to rethink its strategy for its holding companies.[19][20][21][22]
In December 2015, Rostec's supervisory board approved its development strategy through 2025. According to the strategy, Rostec intends to change the Russian economic model by putting less emphasis on weaponry, aviation components, and software and more emphasis on electronics, telecommunications, robotics, and other high-tech industries. This in turn would diversify the Russian economy, increasing the share of high-tech civilian products and non-primary exports.[10][23][24]
According to the 2022 development strategy of the corporation, by 2025 the share of civilian products in its revenue should be 50%.[25][26]
It was reported in late 2022 that Rostec had increased the production of armored vehicles and ammunition in response to the 2022 Russian invasion of Ukraine.[27][28][29]
Rostec announced on 5 January 2023 that it would commence mass manufacture of new C-UAS EW systems in two months.[30]
Chemezov stated in May 2023 that the company's revenue in 2022 was $27.2 billion and the share of civilian production was 45%.[31]
It was reported in August 2023 that Rostec's enterprises had increased the production of armored vehicles by 4x and the production of ammunition for barrel artillery and MLRS by 20-30x since February 2022.[32][33][34]
It was reported in September 2023 that Rostec's enterprises had increased the production of various types of weapons 2-to 10-fold.[35]
Sergey Chemezov claimed on 1 November 2023 that Rostec has increased tank production by 7x, other combat vehicles by 4.5x, artillery/MLRS by 2.5 times, and ammunition by 60x.[36]
Rostec reported in April 2024 that during the previous year it had increased the production of self-propelled artillery by 10x, towed artillery by 14x, mortars by 20x, MLRS by 2x, of ammunition by 25x (by 50x for some types), of rounds for automatic and under-barrel grenade launchers by 5 times at comparison with the 2022. It also enhanced the production and repair of tank guns and artillery barrels twice, organized the production of munitions for drones and increased the production of guided artillery rounds and gliding bombs.[37]
Chemezov stated in May 2024 that the Corporation employed more than 660,000 people as of the end of 2023 and its revenue was 2.9 trillion rubles (31.6 bln US$).[38] A Rostec high-ranking official stated in August 2024 that Russia's total export orders for weapons exceeded 60 bln US$.[39]
On the night of 8–9 November 2024, Ukrainian drones attacked the Rostec's Aleksin Chemical Plant in the Aleksinsky District, about 120 mi south of Moscow, causing a series of explosions and fires at the plant. The plant manufactures ammunition and explosives for the Russian military.[40][41]
The company started to produce IGLA anti-drone cartridges in 2026.[42]
On 18 June 2025, Sergey Chemezov reported to Russia's president Vladimir Putin that Rostec increased production of light armored vehicles and tanks by 1,1 times in 2024 at comparison with 2023 and also increased production of ammunition.[43]
The company begun deliveries of the new Dvina-100M anti-drone system in September 2025 to guard large factories and transport hubs.[44]
In late November 2025, Sergey Chemezov said that the production of shells for barrel artillery rose by 10 times and for MLRS by 12 times since February 2022.[45]
In January 2026, Rostec started to supply the Russian Army with multi-bullet anti-drone ammunition and the Zubr anti-drone systems.[46][47]
