Federal State Unitary Enterprise sanctioned (with all successors, sub-units, or subsidiaries) by the United States on December 28, 2006, under the Iran and Syria Nonproliferation Act, which provides for penalties against foreign persons for the transfer to or acquisition from Iran since January 1, 1999, or the transfer to or acquisition from Syria since January 1, 2005, of equipment and technology controlled under multilateral export control lists or otherwise having the potential to make a material contribution to the development of weapons of mass destruction or cruise or ballistic missile systems; the sanctions apply for two years as follows U.S. government barred from procuring from, contracting with, or providing assistance to the entity, U.S. government sales to the entity of any item on the United States Munitions List prohibited, sales to the entity of any defense articles, defense services, or design and construction services under the U.S. Arms Export Control Act terminated, no new individual licenses granted for the transfer to the entity of items the export of which is controlled under the U.S. Export Administration Act of 1979 or the U.S. Export Administration Regulations, and any existing such licenses suspended; sanctioned on July 28, 2006, by the United States under the Iran Nonproliferation Act of 2000.

Acts as the sole Russian state intermediary agency for export and import of military and dual-purpose products, technologies and services; main markets include Iran, China, India, the U.A.E., Algeria, Vietnam and Greece; exports a wide variety of armaments produced in Russia; exports of army equipment include T-90S and T-80U Main Battle Tanks, T-72M1, T-55 and T-62 tank upgrades, BMP infantry fighting vehicles, BTR Armored Personnel Carriers, Iskander-E missile systems, SMERCH Multiple Launch Rocket Systems, GRAD Multiple Launch Rocket System upgrades, SHTURM-S, KORNET-E and KONKURS-M anti-tank guided missile systems, armor piercing and High Explosive Anti-Tank ammunition, and howitzers; exports of air defense equipment include S-300, TOR-M1, BUK-M1, OSA-AKM and FAVORIT air defense missile systems, TUNGUSKA-M1 and PANTSYR-S1 air defense gun/missile systems, IGLA man-portable air defense systems (MANPADs), STRELA-10M and PECHORA-2 air defense missile system upgrades, surveillance radars, command and control systems, and electronic warfare (EW), electronic intelligence (ELINT)and communications systems; naval exports include Project 636 and Project 877EKM (Kilo class) submarines with Club S missile systems, Amur submarines, destroyers, frigates, guided missile boats, patrol ships, minesweepers, YAKHONT and MOSKIT-E anti-ship missile systems, torpedoes and FREGAT radar systems; air force exports include Tupolev, Sukhoi and MiG aircraft, Mil and Kamov helicopters, unmanned air vehicles (UAVs), turbojet and turbofan engines, avionics suites, radars, air-to-air missiles and air-to-surface missiles, including the Kh-35E and Kh-59ME; offers dual-use products including lasers, remote sensing systems, space communications systems, navigation systems, and general application products and materials including machine tools, instruments and equipment, and wheeled and tracked vehicles; organizes overseas licensed production of Russian arms and military equipment; maintains, repairs and modernizes arms and military equipment, in addition to providing training services; offers technical assistance in building military infrastructure installations; in 2001, reportedly signed a contract to sell Mi-171 helicopters to Iran, with delivery in 2002-2003; reportedly negotiated in March 2002 with Iran's Defense Industries Organization (DIO) for the sale of the "Akup" electronic warfare system; in 1997, Rosvoorouzhenie reportedly collaborated with Iran's Shahid Hemmat Industrial Group (SHIG) to develop a wind tunnel in Iran; in 1997, Israeli intelligence reportedly claimed that the aerospace director of Rosvoorouzhenie was assisting an Iranian program to build missiles based on North Korea's Nodong.