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SOCHI, September 24 (Itar-Tass) —— Private capital in the defence industry helped make a breakthrough in the development and production of firearms, Deputy Prime Minister Dmitry Rogozin said.
“The decision you announced in Nizhny Tagil on May 12 to bring private capital into the defence industry is starting to have an effect and has produced some first results,” Rogozin said at a meeting with President Vladimir Putin on Monday, September 24.
“We see some initiatives and breakthroughs in the firearms sector, for example, the development of a new pistol and two new sniper rifles. These new models were developed by private business. They are currently going through state tests and I hope will be taken on by the armed forces,” he said.
Rogozin stressed that “despite the problems we all know well, problems such as technological backwardness that you have mentioned many times, the armourers are in a positive mood. They are ready to put their efforts and talents into reviving the industry and carrying out the state arms procurement programme”.
Putin called for modernising the Russian defence industry using private capital and solving social problems in the industry at the same time.
“I am not in such a positive mood yet, to be honest. We both know about the problems in the arms and ammunition manufacturing sectors. Yes, we certainly must work hard on technical modernisation and bringing in private money – I totally agree with you here. But we need a programme, and this programme is to be organised in such a way as to ensure that modernising the industry will go hand-in-hand with addressing the social issues, so that people are not forgotten,” Putin said.
“You know how serious an issue this is. The arms procurement programme should take the relevant measures in this respect and ensure support for the companies through state instruments and state guarantees,” the president said.
In his opinion, “there are other possible support measures too, but without direct government support these companies are unlikely to be able to go through the restructuring process without serious losses, and losses are precisely what we want to avoid.”
“We know, after all, that this sector has always played a vital part in ensuring our country’s defence capability, and must continue to do so after the modernisation measures end,” Putin said.
The Russian government said earlier it would invest three trillion roubles in the modernisation of the defence industry until 2020.
In order to implement the state armament programme, it will be necessary to support the industry. To this end, a concept of the federal target programme for revamping the defence industry revamping by 2020 has been drafted.
Its volume has been approved at three trillion roubles. Sixty percent will come from the budget and 40 percent from the enterprises themselves.
The government said that the rocket industry remained its priority.