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Russia's Far East defense contractors expected to fulfill state procurement program

The Zvezda shipyard is expected to deliver two submarines in December this year

VLADIVOSTOK, September 3. /TASS/. Defense contractors in Russia's Far East will be expected to fulfill this year's state procurement and acquisition program, Deputy Defense Minister Yuri Borisov said on a progress review visit to Zvezda shipyard in the port city of Vladivostok.

New law was enacted this year to regulate procedures, he said. "We are looking into whether the industry is prepared to meet its commitments under the new conditions. We have checked the status of all facilities and do not fear a disruption of orders in 2015," Borisov told journalists.

"In particular, we expect the Zvezda shipyard to deliver two submarines in December this year," he said.

This latest assessment follows comments Borisov made in July that the military program had been disrupted due to Western sanctions and manufacturers' faults.

Russia's lower house of parliament passed presidential law in June setting up an interdepartmental system to oversee the program's budget management and open authorised, identifiable bank accounts.

The move, effective from September 1, is expected to increase reliability and transparency.