At the testing grounds, the Prime Minister was shown the design work on the Ratnik-2 modern equipment set, which includes not only a uniform and modern weapons, but also a control system, life support and energy supplies for a soldier. Samples of new equipment, including special sets for snipers, communications and reconnaissance men, were displayed on several manequins.

Mr Medvedev also saw modern army helmets and bullet-proof vests with enhanced protective properties, and small arms – both those used by the army and security services – as well as new weapon samples.

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Prime Minister Dmitry Medvedev visits the Central Research Institute for Precision Machine Building (TSNIITOCHMASH), and meets with small arms designers and representatives of special weapons and tactical units

Dmitry Medvedev's introductory remarks:

Good afternoon, colleagues. I would like to say a few words at the start of our conversation, which I hope will be detailed and informal.

I have just inspected military equipment and modern types of military small arms and special-purpose weapons. Most importantly, all these weapons are Russian-made. No matter how much attention we pay to foreign inventions, we still have to make our own weapons for two reasons. First of all, Russia is Russia. It has always been, is and will remain a leading military power. Second, we have a long and very impressive tradition of making our own weapons.

Honestly, my impression is quite favourable. Indeed, the products on display look good and yield nice results. I hope that all this will eventually be mass-produced. The commercial production of these weapons systems should be launched as quickly as possible. Naturally, the entire potential of the Central Research Institute for
Precision Machine Building, which has been in existence since 1944, will be in high demand and will be utilised.

I have assessed the results of the work of the inter-departmental working group (laboratory), which was established under the Military-Industrial Commission. Mr Dmitry Rogozin is addressing this issue. The group (laboratory) is called upon to ensure cooperation between designers, corporate specialists and representatives of law-enforcement agencies. Representatives of the concerned agencies are present here. I believe this is a good idea, and I hope that it will yield practical results.

We prioritise the procurement of modern weapons and equipment for the Armed Forces. It is common knowledge that the state is making unprecedented allocations for this purpose. Judging by currently available data, state defence contracts account for virtually 95% of the Institute's projects.

This is good, but it is important that the funding be allocated on time and in full. I would like you to tell me in greater detail whether you are having any problems with this, because the situation is different everywhere. The Government prioritises control over the allocation of funding for state defence contracts and for fulfilling specific obligations as regards arms and military equipment procurement and shipments. For this purpose, the Government now oversees the work of the Federal Service for Defence Contracts (Rosoboronzakaz). Today I appointed the new Rosoboronzakaz Head, Alexander Potapov. I hope that he will look after all shipment-related issues.

I would like Mr Rogozin to conduct work and to coordinate activities in this area. Naturally, I would also like Mr Serdyukov (Defence Minister Anatoly Serdyukov) to collaborate with Mr Rogozin, because the Ministry of Defence is the main user of equipment manufactured by Russian defence enterprises.

I would like to mention another aspect here in light of the range of weapons, which was shown to me. The relevant effort is primarily based on a public-private partnership. This is good, because excessive reliance on the state's potential is no longer effective. Both state and private agencies are involved in implementing R&D projects and introducing their results into production all over the world. Apart from R&D projects, this includes the creation and subsequent manufacture of new prototypes. At any rate, the level of those systems that I have seen today, including the sniper rifle and pistols, I must admit, is quite high. Of course, they should be brought to the final technological version and then put into mass production. It would be good to know when all this will happen.

It is very important that employees are chosen correctly. This engineer corps is a key to success during the creation of the new image of our defence industry, its modernisation. It is very important that we employ young talented specialists. To the best of my knowledge, the number of your employees has decreased somewhat over the past three years. At the same time, the average age of your specialists has increased, and is now 55 years. Of course, this is a good age, but young people must also be recruited. Mr Semizorov (Addressing Dmitry Semizorov, Acting Director General of the Central Research Institute for
Precision Machine Building), let's see how we can address this issue, all the more so as average wages did not decrease over this period, but, on the contrary, have soared by more than one-third. These wages are quite competitive with other corporate working conditions. I hope that this will make it possible to recruit talented young people who are interested in the development of the national defence industry.

The sale of innovation products now exceeds 50% of your enterprise's sales volumes. It is good that R&D expenditures have increased. This is a key issue for all Russian defence enterprises. Mr Rogozin and I flew by a helicopter here and discussed the attitude of some well-known Russian national defence enterprises with an impressive international reputation. Corporate executives believe that their products, which were developed in the year 19-something, are the best in the world, they don't want to see anything else, they don't want to read anything, and they are confident that Russian weapons are the best in the world. This attitude is unacceptable. We will never have the best weapons in the world, unless we work tirelessly, and unless we invent new products. If we rest on our laurels, all talk of our defence potential, our small arms, including your products, will become history.

We need to create incentives for academic work. It is good that your staff has many doctors and candidates of science. But the main thing is not the number of academics but the number of new products. Naturally, your products are verified by consumers, including the Ministry of Defence, the Ministry of the Interior, the Federal Security Service and other law-enforcement agencies.

Now let's discuss incentives for corporate employees. Naturally, you will be able to speak about other issues as well.

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