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VLADIMIR PUTIN HELD A MEETING OF THE MILITARY-INDUSTRIAL COMMISSION

ON DEFENSE PROCUREMENT PROGRAMME RESULTS


RUSSIAN PRESIDENT VLADIMIR PUTIN
RUSSIAN PRESIDENT VLADIMIR PUTIN
USPA NEWS - Russian President Vladimir Putin held on February 12 at Naberezhniye Chelny, a meeting of the Military-Industrial Commission to discuss the 2015 defence procurement programme results and examine the outlook for the Russian defence industry´s development....

Russian President Vladimir Putin held on February 12 at Naberezhniye Chelny, a meeting of the Military-Industrial Commission to discuss the 2015 defence procurement programme results and examine the outlook for the Russian defence industry´s development.


Below, follows the statement on the meeting :

PRESIDENT OF RUSSIA VLADIMIR PUTIN :

Good afternoon, colleagues,

Today we are holding the Military-Industrial Commission´s first meeting in 2016. We will review the 2015 defence procurement programme results and examine the current and future outlook for our defence industry´s development.
We finished 2015 with better defence procurement results than in previous years. In 2013, the defence procurement programme was 93-% complete, in 2014, the figure was 96 % , and last year, it was 97 % . Orders for the law enforcement agencies, security agencies, and Rosatom Corporation were completed in full.

Regarding the Defence Ministry, orders increased in volume, but there was a noticeable drop in the share of work not carried out. This figure does not exceed four % today.
In this context, let me thank the ministries, agencies, and defence industry workers for their successful and efficient work in our country´s interests and their big contribution to ensuring our national security, defence capability, and to shaping the new look of our Armed Forces.

We are meeting today at one of Russia´s industrial giants ““ KAMAZ. This company plays an active part in carrying out defence procurement orders. Let me take this opportunity to congratulate the KAMAZ staff once more on the big date they are marking ““ 40 years since the first truck came off the assembly line.
Coming back to our agenda today, let me note that we reached the planned level of equipping our troops with new models of arms and equipment last year. Our target was 30 percent.

We need to keep up this pace and take the level up to 70 % by 2020, as we planned. In this respect, we need to set the parameters for the new state defence procurement programme for 2018““2025, and draft the foundations of this, our most important planning document for developing our defence industry over the coming years.
Of course, we need to keep in mind that our budget´s possibilities and the country´s possibilities can change, as can the conditions for the defence industry´s development. Over the last two years, for example, a number of defence companies have seen international cooperation ties severed and encountered other problems. But we have seen a convincing demonstration here at KAMAZ of how these are temporary difficulties that can be overcome if we work with intention.
Let me say again that the state and the defence industry must fulfil all tasks concerning our defence capability and national security in full, including through optimisation of internal procedures. We must improve cooperation mechanisms between those placing defence orders and those carrying them out, and we must strengthen budget discipline.

Let me remind you that, starting from September 1, 2015, new requirements took effect on the use of budget money for defence procurement purposes. Contract payments are now made through separate accounts opened with authorised banks. This procedure will make payments more transparent and improve monitoring of how state money is spent.
I ask the Military-Industrial Commission´s Board to monitor compliance with these requirements very closely. You must also follow closely the new laws´ practical application and, if necessary, propose any needed amendments in order to ensure uninterrupted work on defence contracts.

We are well aware of the debt existing within the military-industrial complex, and we need to resolve this problem. Earlier, we provided advance lending to defence companies, due to certain difficulties they experienced, but the volume of debt surpassed all sensible parameters. I am constantly hearing about this, the Defence Ministry knows this, as do other departments and supervisory organisations.
I am asking you to look into this problem very carefully and change the situation.

Colleagues, there is another issue I would like to discuss separately, pertaining to the development plans for the Crimean military-industrial complex.

Right now, organisational work is actively underway in Crimea and Sevastopol. The regional structures have been integrated in the Russian military-industrial complex system. The production capacity and the number of people employed in this sector are growing.
There are 21 organisations operating in the military-industrial complex of Crimea and Sevastopol, including 14 in shipbuilding, three ““ in aircraft manufacturing, two in the radio electronics and two in conventional arms production. Naturally, we need to look at the prospects for these enterprises, we need to make the existing production facilities more efficient, take the quality of the products to a new level and broaden their range.
This year, the state programme for military-industrial complex development will begin financing modernisation of Crimean defence enterprises. Funding will be channelled toward upgrading production lines, training new staff and further training experts working in Crimea´s defence industry.

(...)


Source : Kremlin, Russia

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