[captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] this week on defense news. >> welcome to defense news. we are demonstrating the latest technology of cross land sea and air. and saudi arabia to china the united states, hundreds of countries are represented by companies showcasing their advanced systems for workfare and national security. also unveiling of new partnerships. one of those deals came as a surprise to many.

i sat down for a rare interview the a ceo serge, to get on details and what he thinks about russia u.s. relations under the trump administration. according to which the two sides have agreed. out of the fifth generation of fighter. it takes a long. a time to develop. that's because it started about seven to eight years ago.

we will start the preparation of the construct which i hope will be signed before the end of the year. >> where are the target markets you anticipate? all, we have made some production here. of them.or the needs also of the neighboring companies. >> terrific. we have seen relations with united states and russia challenge to some degree particularly on coat development. do you see that changing with the new administration? i think the relations between russia and usa will be much better than today.

president business andnts that means economic interest. economic interest will always .revail over political on the one hand. hand, he will think about profits and revenues to make but, by the end of the day, this will impact the political relations within the two countries. i hope that our relations to russia and the united states will improve. will helpnaturally

>> do you imagine better cooperation to the countries on terms of defense? >> possibly yes, why not. cooperating. mostly providing and manufacturing for civil aircrafts. but to the alloys that we have created, and we have a joins them in productions. at creation of more than -- more on alloys of titanium.

are looking into the intellectual property of the alloys. certainly the alloys will be used for military purposes. as a greatamed china opportunity for growth in their target market. what opportunities do sheep or china?- do you see for >> china has always been the closest for us. we sell a lot of technologies and licenses to china trade at causticnt, we sold the weapons to them.

we continue cooperating with them. agreement oned an transporton of heavy carriers and heavy helicopters. we have ready-made products or china and also we are transferring our development. >> we're family. we'd do anything for each other. but this time... those bonds were definitely tested. frog leg, for my baby brother don't frogs have like, two legs? so they should have two of these? since i'm active duty and she's family, i was able to set my sister up with a sweet membership from navy federal.

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>> most recently pulling under russian tank production. i spoke to ceo -- a ceo and abu dhabi. we developed for infantry vehicles. production of those infantry vehicles we use to be selling continue we modernizing

and the technology is very popular. >> absolutely. asia. in southeastern also in northern africa. russia is currently undertaking it in syria. it has demonstrated our capabilities of this technology. our aircraft and aviation technology has proven to be quite effective. our missile group also.

it was advertisement free of charge. they were responsible for our sales. in closing,spoken, there is prediction of great growth in terms of revenue. can you talk about where you anticipate that growth coming from? >> the biggest part is weapon sales. 70% of the company we have mostly is a defense company. and 30%

of ministry of defense russia as well. we also realize that this will so that is whyr is,025 our objective according to the strategy we to make theed, other sales up to 50%. final question.

is for theportunity investors in russia? >> we don't own the whole defense industry. we have some other big holdings like ship construction. shipbuilding of the country and aviation construction company. aviation andl , and a number of other producempanies which other items. quite a wide range of

companies and they should exist otherwise we would not be able to produce the things that they do. we are incapable of covering it all. we cover about 70% of the market. speaking about aviation, the biggest part of avionics and and differentcts aviation equipment and .echnology, including weapons aviation companies mostly assembled us. >>

>> europe, like the middle east, is looking to upgrade their defense capabilities and rely less on other countries. i spoke to a deputy minister of defense of the czech republic to find out what the partnership would entail. >> as you know, we are nato isbers since 1999 and this our cooperation with other countries because it is a quality of relationships. germany is our neighboring country. we have very close ties politically and socially in the industrial

with a that joining framework nation with germany and romania can bring out the new opportunities for us. experiences,of reforms, and also communication channels. that this combination is very natural, and it can bring new quality not only for us but for our german and romanian population. >> do you envision the potential of codevelopment in terms of defense systems or is

>> we are also discussing these possibilities. europe, weus that in cannot divide our forces, for example, research each country on its own weight. we are convinced that the future of defense will be that the countries will have joint projects. we will have joined the research and development. as you know from the map, czech republic being so close to it is already a not only itemsy, for the automotive industry, but many other projects.

natural that in the defense industry, there will be many opportunities to continue together. you just announced nationally that you had a signing with another company. can you tell me what the basis of the partnership is? already long-standing -- a long-standing partnership. up until now, it was mainly based on a buy and sell relationship. entering into a new. really teach to other concepts

as you know, the czech republic has a long tradition in the defense industry, and i feel uae partners are willing to learn and they want to give up their own capabilities and this is a arfect occasion to create structured partnership based on the cooperation in the defense industry. you have to trust each other. that youto be sure want to invest a lot of money into a project that your partner will maintain or

succeeded to convince our partner that the czech republic is serious -- a serious partner that can help them and we also have many things to learn from them as well. it is mutually very beneficial. >> we have heard quite a bit from our administration in terms of the 2% goal for nato members in defense spending. i believe your defense minister has said that he doesn't feel that that is a threat and so forth, in terms of some of the messages coming from our trump administration. i believe that the czech republic is at about 1%, a little more than 1%. do you see that going up to 2%?

defense spending? , atirst i have to explain the end of the 90's, there was a big enthusiasm in central europe that the conflict between east and west is over and now there will be a very bright future without any conflict on -- in our part of the world. -- aif we had very strong , weng defense industry started to underestimate the say, the, and let's budget priorities were in other fields.

it is the end of the. of underestimating the situation , the security situation. the request oft 2% is absolutely normal and we are aware of the obligations we took when we entered to nato. it is a slow process, though. double theossible to defense --inistry of of the ministry of defense in one or two years. we are very fast in increasing the budget.

which is very good. 1.4% and -- in 2020 or 2021 we will continue this way. we are not the best in the absolute amount of money but we are one of the best, let's say, in increasing the budget. we can make it. the climate in population and political climate is perfect. everybody is supporting that. >> jeanette mack offers tips on

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ordersthings wereg helpat ustouch-and-go. it really could've gone either way. but i had a decision to make. pancakes, or bacon and eggs? we decided to go with pancakes. because well, lola can be a real five year old when she doesn't get her way. home. you gotta love it. and it's all thanks to my fantastic mortgage from navy federal... it's not called the mess hall for nothing. open to the armed forces, the dod, veterans and their families. navy federal credit union. >> abu dhabi might just be the most impressive show on display. there are some good technologies supporting infantry in the battlefield. >> i had to try this firearm simulator. >> this is a simulation company

and some things displayed for the first time was heaven weaponry -- heavy weaponry. >> and you have some on display here? >> absolutely. this is our m2. it is a 50 cal round. it is integrated into our simulator. the cost savings is really what we are looking for here. , it is aboutound three to four dollars -- three dollars to four dollars around. about 5ntry can get million trigger pulls on these any monetary waste. the reality

roughly three to four dollars so when you are putting someone on these guns for the first time, that is a lot of money that you are putting down range that you are just wasting. with this, i can kind of build you up. think of it like driving training or other training where i put you in a simulator first before i put you out on the road. >> imagine doing it for the first time. i have never shot a gun. mind if i do a shot? >> go ahead. >> i will have you all the mic. all right, let's see. shots] >> while. i don't know if our audience will be able to hear afterwards. >> the weapons on the software and how they work is an electric and mechanical linkage. there has been acceler

and took that information and put it into the software. what you are feeling is what a 50 -- 50 cal gunnar woodfield driving down the street. >> i think we will head over here. you have another? fn 240.is the .his is a 762 round this is typically mounted on top of a vehicle. realism,how you the this is a real site that you would see mounted on top of this weapon. what you can do is mounted up, and give it a shot on the trigger. to shoot thetry targets downrange. -gun shots] >>

shoulder. can you tell how successful i was or how much i failed? >> we can. we don't have anyone over at the part of the station to be able to tell you that right now. >> i think that is good. [laughter] that is all this week in defense news where we bring you out interview of a ceo at a top defense company.

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