Thread by @Ordakazakhstan_

❗️LONG THREAD❗️
What if there's a war tomorrow? How the defense industry of Kazakhstan lives. Part I

There are two types of defense industry enterprises in Kazakhstan. Due to the specifics of each company, they do not advertise themselves particularly.

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The first type includes those organizations and factories that #Kazakhstan has inherited from #USSR. This is the production of torpedoes, large-caliber machine guns, components and components for aviation equipment, as well as breathing apparatus for military aviation. /2

In addition, these companies create shells, repair howitzers and armored vehicles. The Zenit plant in Uralsk produces warships and boats, and the Granit plant produces components for air defense. This type of defense industry in Kazakhstan accounts for 90% of it. /3

The products are produced for the Russian market or use components from the #RussianFederation. Until recently, the "defense industry" was developing at a great pace. Now, any contacts can lead to falling under secondary #Sanctions. /4

Experts say that in the fall, enterprises will face serious problems: factories may suspend production, and employees will be out of work. They claim that a political solution is needed to reorient production. Kazakhstan has interesting technologies that we can offer to../5

..other countries.

The second type of defense industry includes new factories built during independence and in cooperation with foreign companies. It was they who brought military technologies to the Kazakh economy. /6

One of them is Kazakhstan Paramount Engineering LLP, which produces a new type of armored personnel carriers Mine Resistant Ambush Protected or otherwise MRAP. The plant was built in Nur-Sultan in 2015.
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It didn't work out with the Turks, but South Africa provided technology: iron angels in service with Kazakhstan.

The decision that the United States needed new armored vehicles was made after the Iraq War. /10

Chairman of the Association of Enterprises of the Military-industrial complex of Kazakhstan Aibek Barysov

The usual armored personnel carriers on eight wheels and humvees were blown up and destroyed in every possible way. About 300 American soldiers died a year because of this. In search of new technologies, the United States has set its sights on South Africa. /9

The country’s original engineering idea gave rise to a new type of APC - MRAP. These are machines resistant to anti-tank mines or ambushes.

"These are tall cars with a V-shaped body. When a mine explodes below, the energy diverges to the side, and the people../10

..inside the car remain alive. The APC and Hummer have a flat bottom, which leads to large casualties. The Americans bought the technology from South Africa and began to produce machines, which are now called Oshkosh. /11

At one time, the military leadership of Kazakhstan was tasked to establish the production of a new type of armored personnel carriers in the country, then we began to think about how to do it."

- Chairman of the Association of Enterprises of the Military–Industrial Complex of Kazakhstan Aybek Barysov.

At first, the desire to build a plant for the production of MRAP was expressed by a Turkish company that owns technologies. /12

Alan (in the foreground) and Arlan (in the background)

The company required huge funds for intellectual property, while South Africa, after long and intense negotiations, agreed to provide design and technical documentation for a share of ownership in the future plant. /13

Today, 65% of Kazakhstan Paramount Engineering LLP belongs to two Kazakhstani companies, and the remaining 35% belongs to African partners. 250 people work at the domestic enterprise and another 3,000 employees work all over Kazakhstan in related industries.
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"Today, the Yuar people have fully transferred the technology and blueprints. We are the only country in #CentralAsia that can produce MRAP. Our cars participated in the military conflict in #Karabakh. 27 MRAPs with military personnel were subjected to enemy fire. /15

Cars were blown up by mines, land mines exploded nearby, but not a single soldier was killed. Today we have about 30 Kazakhstani engineers in our design bureau, there is not a single foreigner. The Ministry of Defense is the main driver for the defense industry. /16

It is they who should say how they want to fight, so that the engineers have already figured out what to do. Instead, Minister Zhaksylykov says: "You guys take it easy, we will get it from the Turks." Aybek Barysov said.

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The company produces the following types of armored vehicles:

· BKM "Arlan" with the wheel formula "4x4".
· BKM "Alan" with the wheel formula "4x4".
· BKM "Nomad" with the wheel formula "4x4".
· BTR "Barys" with the wheel formula "6x6"
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· Armored personnel carrier "Barys" with the wheel formula “8x8".

All cars must pass tests that last four years. Only recently they came to an end. /19

According to the management of Kazakhstan Paramount Engineering, several countries are already considering the purchase of military equipment, but they have one quite reasonable doubt: if the machines are of such high quality, then why does Kazakhstan not buy them.
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President Tokayev’s visit did not solve the problem
The plant in Nur-Sultan can produce up to 300 cars per year. Considering that according to military experts, the Kazakh army today has about 3,000 obsolete 82A armored personnel carriers produced during the Soviet era,../21

Photo Bort N1

..which are in service with Kazakhstan, Kazakhstan Paramount Engineering can take only Kazakh orders for another 10 years. But in six years the company has produced only 120 cars.
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"The plant has been producing products since 2016. Since that time, we have never been 100% loaded. This year, the Ministry of Defense ordered six vehicles – 2% of the capacity. The maximum workload was about 10-15%. That is, the plant has never worked at full capacity. /23

Photo Bort N1

At the same time, we are constantly asked to reduce the price of products. Although our MRAPs are already two times cheaper than their foreign counterparts, whose price starts from $ 1.5 million. And this is without “stuffing”.” Aybek Barysov said.

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On March 10, President Kassym-Jomart Tokayev visited a factory for the production and modernization of armored wheeled vehicles. He was shown a line for the production of domestic machines, and also demonstrated the products of Kazakhstani defense industry enterprises.

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Kazakhstan Paramount Engineering/Photo Bort N1

"The president's visit turned into a meeting at which, in addition to the head of state, the Minister of Defense, the Minister of Internal Affairs, a representative of the KNB, the head of the border service and the National Guard were present. /26

Tokayev asked if the Defense Minister liked the cars, to which he replied: "The price is high." Then the president said that the price is not your problem, you fighting wars is. The price is a matter of the Ministry of Finance. Is it a good car? Why don't you support it? /27

The President gave specific instructions to support the plant and develop the domestic defense industry. But five months have passed, and during this time nothing has been done, officials have set the deadline for execution – December 2022. /28

The President instructed to make preferential financing for the defense industry, because in all the charters of banks it is written that they cannot finance the military. /29

The law stipulates that there is preferential financing, but in fact there is none. The President said to look into it and find a solution, but there is still no solution. Only the construction of the plant in Nur-Sultan cost me 12 billion tenge. /30

To do this, I had got a bank loan at high interest rates." Aybek Barysov said.

According to the company's management, costs are barely covered. Moreover, if there are no orders for more than 6 cars now, the plant will have to be closed.

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Despite the meeting, Kazakhstan Paramount Engineering did not see any concrete steps, so the president met with competitors – Ali Koch, a member of the board of the Turkish company Koç Holding.

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Photo Bort N1

Kazakhstan already has 17 Otokar Cobra vehicles from the Turkish company Otokar in service. They were bought three or four years ago, but repair and maintenance costs a decent amount of money.
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Photo news.myseldon.com

"The current Minister of Defense was involved in the purchase of Cobra. As far as I know, they are now being “cannibalized”: when some break down, healthy parts are removed from them and put on others. /34

It is very expensive to repair foreign equipment. Now the Turkish company offers Kazakhstan to buy 90 ARMA and 30 Cobra cars. The latter does not belong to the MRAP at all, and is much inferior to our "Arlan". /35

It is worth noting that the ARMA on an eight-wheeled base is not in service with the Turkish army, why is unknown. Now imagine how much it will cost to repair and maintain them? This is the needle they are trying to hook us on. /36

A Turkish company wants to sell a batch of cars and forget it. No one will transfer blueprints and technology. They said, buy 90 cars from us, then we will build you a factory that will bring them profit. /37

At the same time, we have seen a contract from which it follows that it is possible only after 15 years they will give Kazakhstan outdated blueprints. And this happens with a live domestic manufacturer of armored wheeled vehicles. /38

Samples of Turkish cars are imported to us, which are analogous to our cars. They are being tested… And our machines are practically not inferior in anything, and in some cases even show better results." .../39

..said Naizabek Olzhabayuly, executive director of the Association of Enterprises of the Military–Industrial Complex.

Last year, the military equipment of the Turkish company was tested in various ways to prove its suitability. /40

According to the document below, the car should be checked in the summer at a temperature of -30. It will probably be special boxing, which, unfortunately, will not show all the disadvantages and advantages of the equipment, probably, not on the territory of Kazakhstan. /41

Other "tests" will not be conducted in Kazakhstan, which is also a violation.

Kazakhstan's MRAPs have several significant differences. The machines were created specifically for the needs of our soldiers, so the equipment differs by 20% from the original.
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"When the Azerbaijanis arrived at the plant, they said that it was an improved version of the car. We made sure that our backpacks fit under the seats, there is a heater for temperatures at -50. Loopholes were also installed. /43

This is the 3rd generation of cars, we called them "Arlan". Now our work is being subjected to a powerful information attack. Up to the point that photos and videos from secret polygons appear on social networks and the media. /44

For example, a wheel malfunction was detected in our car, which is being trumpeted from all sides. But after a short period of time, a more modernized part was cast at the factory, and the wheelbase was changed on all cars created earlier. /45

Which foreign supplier will react so quickly on an industrial scale?", – says Aibek Barysov, Chairman of the Association of Enterprises of the Military-Industrial complex of Kazakhstan.

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Another difference between our MRAP and its Turkish counterpart is the warranty and free service.

Lobbying of foreign companies
Before the events of Bloody January, the Minister of Defense was Nurlan Yermekbayev, who headed the department since August 7, 2018. /47

While in power, the Lieutenant General planned to purchase 30 Russian armored personnel carriers made using old technology. Moreover, Yermekbayev offered ex-Prime Minister Askar Mamin to diversify the products of the domestic defense industry altogether. /48

That is, to transfer it to "civilian rails".

Yermekbayev was replaced as Defense Minister by Ruslan Zhaksylykov, who immediately started talking about the modernization of equipment. /49

However, old technologies are still old, so even significant changes cannot lead to a great result.

"Many generals, when it comes to military equipment, are not interested in quality. /50

Kazakhstan Paramount Engineering Plant/Second from left Nurlan Yermekbayev

It does not matter to them how this technique protects soldiers or acts during military operations. The main thing is the price. We regularly see corruption scandals related to the military. The problem is that our army is not separated from finance. /51

It is they who determine at what price to buy and which products," said Aibek Barysov, chairman of the Association of Defense Industry Enterprises.

According to Aibek Barysov, if the previous minister lobbied for the interests of the Russian defense industry,../52

..then the actions of the new one show interest towards Turkish companies. It should be noted that in February 2022, at a meeting of the Ministry of Defense with the Turkish company Otokar, Almaz Asenov, the former head of the weapons department of the Ministry of Defense,../53

In the far right corner is the Asenov Diamond. Photo kazpravda.kz

..sat at the negotiating table from a foreign organization. In 2013, he was accused of receiving a bribe from the Ukrainian state-owned company Ukrspetsexport. /54

At first, the Prosecutor General's Office linked this money to the fictitious repair of the AN-72 aircraft, which crashed on December 25, 2012, along with 27 border guards on board. In total, Almaz Asenov served 3.5 years in prison instead of 11 years.

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"The Minister of Defense, in person, a month ago on the territory of the Ministry held a presentation of foreign equipment – analogues of Kazakh products for the government. /56

Many in the army are perplexed by such personal involvement of the minister in promoting the commercial interests of a private foreign company. With Kazakhstan's obvious need for ammunition, missiles, artillery and other types of weapons and equipment that are not..57

..produced in the country, Minister Zhaksylykov's desire to purchase equipment that is already being manufactured in the republic raises many questions," said Aybek Barysov, chairman of the Association of Defense Industry Enterprises.

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Recently, a petition was created on the Internet for the resignation of Defense Minister Ruslan Zhaksylykov. Kazakhstanis are demanding his dismissal due to the frequent cases of suicide in the army.

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"As we are informed from military units, a command has been given to military personnel to go to the resource and vote against it. These rumors are indirectly confirmed by a strange increase in the number of votes against this petition on the corresponding online page," said../60

..Aibek Barysov, chairman of the Association of Defense Industry Enterprises.

/61

Strangers – no problem and their own – tough luck.
As in any country, in Kazakhstan, the state defense order is legally regulated. To a greater extent, the law "On the Defense Industry and the State Defense Order" concerns domestic companies. /62

It is much easier for foreigners in this regard.

Thus, Kazakhstani enterprises should not include in the cost of products neither medical insurance costs, vacation pay, nor any other types of expenses, except those directly related to the creation of military equipment or../63

..products. At the same time, according to the law, foreign organizations must be reimbursed for the exchange rate difference at the expense of budgetary funds. /64

One more important fact: no one will argue with a foreign company if its management names a certain price for its products.

"All rules and regulations for domestic defense industry enterprises are prescribed by the Ministry of Industry and Infrastructure Development. /65

These rules contradict some laws of the Republic of Kazakhstan, discriminate against the national manufacturer in relation to foreign suppliers, create many barriers to the development of the domestic defense industry. /66

Do you know that, according to our information, among the MIIR officials who are engaged in the defense industry and write rules and regulations to our factories, there is not a single person who worked at a defense enterprise? /67

All regulatory documents are based on the Law "On the Defense Industry and the State Defense Order". According to the results of the examination conducted by the Parliamentary Development Fund under the leadership of Zauresh Battalova, more than thirty corruption risks /68

..in this law were identified. Today, work is underway to introduce amendments and additions to this basic law for the defense industry. All the proposals of the Association are met with fierce resistance from the MIIR and representatives of the Ministry of Defense. /69

For example, it is prohibited by law to create consortia during the execution of the state defense order, but this is nonsense. This is contrary to a number of laws. /70

The Ministry of Industry and Infrastructure Development not only does not develop the defense industry, but also pursues defense enterprises," says Naizabek Olzhabayuly, Executive director of the Association of Defense Industry Enterprises.

/71

Last year, a number of Kazakhstani enterprises were prosecuted allegedly for exceeding the price by 2.5 billion tenge by the end of 2019. Only the court sided with the companies. /72

However, Kazakhstan Paramount Engineering companies have to pay 11 million tenge of legal costs, although the LLP won the court, as it turned out, even after losing the court, the costs of legal proceedings are not covered. /END

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