In the upcoming two years the programs of the large-scale rearmament in the army and the navy are expected to be accomplished. Since 2020 the demand on the products of defense companies is predicted to fall on the part of the state as a customer. Therefore, the defense sector is developing contracts in the civilian sector, so that it could secure itself after delivering defense contracts.
Circumstances differ among companies: while some companies are actively investing into the conversion, others were left dependable from the defense sector and cannot switch promptly to the civilian production.
Holding «Shvabe» which delivers fibre-optic products to the army represents an example of an effective diversification. In 2016 the company's volume of contracts in the civilian sphere in Russia was 12,1 bln rubles, in 2017 it is expected to reach 17,6 bln rubles. In 2020 the holding intends to raise the share of civilian products in the revenue of the company up to 50%, and up to 81% in 2025.
«Shvabe» is increasing its profit due to medical projects: the company is taking part in the federal program of constructing perinatal centers. In 2017 the holding delivered medtech in the amount of 2 bln rubles to 30 Russian regions. For example, for hospitals they produced anesthetic machines used for nursing premature babies. Moreover, “Shvabe” delivers incubators for newborns with an extremely low body mass, as it was reported in the press relations service of the state corporation “Rostec”.
The Federal Cabinet of Ministers supports aircraft industry using state programs. The Ministry of Industry and Trade of the Russian Federation has formulated a development strategy for the industry up until 2030. The percentage of the civilian production in the aircraft industry is predicted to grow from 21,3% in 2016 to 38,5% in 2030.
In 2017 events on import substitution were made actual in the project «Sukhoi Superjet 100» (SSJ-100), which implied using Russian components in the interior, purchasing Russian passenger seats. Part of the budget is spent on the state program «Aircraft Industry Development for 2013-2015».