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Putin asks Rogozin to finalise general pricing principles for defence orders

November 19, 2012, 21:09 UTC+3

“Work together with the economic bloc in the Government to get this completed. This matter needs to be settled,” the president added

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NOVO OGAREVO, November 19 (Itar-Tass) —— President Vladimir Putin asked Deputy Prime Minister Dmitry Rogozin and economic ministers to finalise the general pricing principles for defence orders.

“The general price-setting principles need to be settled. This has been the subject of much discussion and there are many problems here. You have already had enough trouble with this yourself, but we still have yet to see a common set of principles,” Putin said at a meeting with Rogozin on Monday, November 19.

“Work together with the economic bloc in the Government to get this completed. This matter needs to be settled,” the president added.

Rogozin admitted that “with work still being handled in manual regime, things reach the point where you, the president, have to make the decisions yourself on the most complicated cases, nuclear submarines, for example. We hope though, that the State Duma and Federation Council will pass the law on state defence procurement by the end of the year. This law will give both the people placing and performing the orders a lot more room to manoeuvre in terms of choosing the optimum state contracts that will take into account the specific situation with each kind of good – more technologically complex goods and simpler products.”

He expressed hope that the situation will be improved with the help with an inter-agency working group headed by the presidential chief of staff Sergei Ivanov. The group will monitor performance and placement of defence procurement contracts, and its members include the people responsible for these matters.

“Overall, in accordance with the state arms programme, we have already started drafting the new state arms programme for 2016-2025 three years and three months ahead of the new financial period. We will soon submit to you draft executive order on procedures for drafting the arms programme. These procedures will reduce the risk of mistakes because we will carry out a thorough analysis of the materials and technological capabilities in the industry in terms of being able to perform specific contracts and requirements. In other words, we are acting in accordance with your instructions and hope to see an improvement in the situation already next year,” Rogozin said.

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