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Deputy PM praises development of Russian defense industry

September 10, 2015, 9:58 UTC+3 NIZHNY TAGIL

"A steady positive trend in the development of the defense industry has been registered beginning with 2011," Dmitry Rogozin said

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© Donat Sorokin/TASS

NIZHNY TAGIL, September 10. /TASS/. Russian Deputy Prime Ministry Dmitry Rogozin has praised positive trends in the development of the Russian military-industrial complex. He said as much during the Russia Arms Expo military-industrial exhibition in the city of Nizhny Tagil (in the Urals).

"Overall, a steady positive trend in the development of the defense industry has been registered beginning with 2011," Rogozin said.

"At the end of 2014, labor productivity in the aviation industry grew by 15.3%, in the aerospace industry - by 8%, in the shipbuilding industry - by 11% and in radio electronics - by 21%," he noted.

The volume of industrial production grew by 15.5% last year, Rogozin said, with maximum rates registered in the radio electronics (24%), aviation (17%) and aerospace (8.6%) industries.

According to Rogozin, the growth rate is mainly ensured at the expense of military production, which grew by 21%, whereas civilian production at Russian enterprises dropped by almost 2%. He voiced the conviction that without such a powerful impetus to the development of the defense industry a decrease in civilian production would have been greater. He cited the nuclear industry as a positive example, where there are common manufacturing processes and technologies for both the production of weapons and the "peaceful atom."

Rogozin said that a draft of the new defense industry development program is planned for approval in December this year. "Under the president’s order, we have been actively drafting a new governmental program on defense industry development, which we plan to approve in December 2015," he said during the Military Industrial Conference.

The new program is designed for switching to the production of sophisticated military and special hardware. Proposals have been made to reduce the share of off-budget financing and provide adequate financing for research and development. According to the vice-premier, the new program is to cover, inter alia, development of an advance technological backlog, special materials, etc.

Rogozin said a detailed report on the implementation of the import substitution program in defense industry would be submitted to the Russian president soon. "The work has begun, and we shall provide the Russian president, in the near future, with a huge report on how the work is being done under stringent supervision of the Defense Ministry, and Industry [and Trade] Ministry, and our state-owned corporations," the vice-premier said.

He reminded the audience that thousands of items have to be replaced as far as previously imported Ukrainian products are concerned. As for NATO countries, the items subject to substitution account for 860 in various items of combat hardware, or tens of thousands of parts.

According to Rogozin’s estimate, the work has to be mostly completed by 2018, though some of the most sensitive items will be replaced with domestically made ones right up to 2020.

Over 94% of governmental defense procurement orders for military and special hardware have been placed as of early September, Rogozin said. "94.2% of governmental defense procurement orders for combat and special hardware have been awarded as of September 4, 2015," Rogozin said, addressing the Military Industrial Conference.

In particular, the vice-premier added, the Defense Ministry placed 94.3% of its orders, law enforcement agencies and security services ordered 88.6 of what they need, and the Rosatom state corporation awarded 97.6% of its orders.

The vice-premier underlined that the 2015 defense procurement program was being implemented at a slower pace compared with last year’s plan, even though over 74% of the money set aside as advanced payments to manufacturers and as payments for the job done had been transferred. "I would like to emphasize again that this is happening against the backdrop of difficulties being experienced by our economy. Therefore, defense industry has displayed leadership and willpower, in fact," Rogozin added.

The other day, Russian Deputy Defense Minister Yuri Borisov said the ministry was at ease in its mind about the fulfilment of the 2015 defense procurement program. According to him, the ministry "keeps abreast of the situation," supervising the program’s implementation.

Putin to meet six more candidates for Russia’s defense industry chief designer post

According to the official, a total of six potential chief designers for the Russian military-industrial complex will be introduced to the president at the meeting of the Military-Industrial Commission (MIC) on September 18.

"The next six candidates for the position of chief designer will be introduced to the president at the MIC meeting on September 18," he said.

Rogozin noted that the first five chief designers were approved by the MIC decision of April 17.

Russian President Vladimir Putin signed a decree on chief designers of armaments in January. According to the document, there will be no more than 20 chief designers, and their status and responsibility will increase. Putin explained that they would take charge of the work to develop strategically important weapons systems and, consequently, will have broad powers to ensure resources support for the projects.

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