Question: Has the state defence order been implemented in 2012? And what amounts have been budgeted for the next three years? And generally speaking, are our companies capable of ensuring the implementation of these plans?
Dmitry Rogozin: This year we did a great deal to ensure that the defence order is placed in time and is implemented. And today, one of the issues discussed at the Government meeting was to sum up this year’s results, and to prepare and adopt a resolution on the state defence order for 2013, 2014, and 2015.
As of today, the Ministry of Defence has implemented 99% of state defence contracts for weapons, military, and special equipment; the Rosatom State Corporation has implemented 100% of the defence order, and the law enforcement agencies have implemented 99.9% of the defence order. In other words, the state defence order has been implemented in full.
As for next year, and the years 2014 and 2015, the state defence order will increase for the simple reason that we are completing the research and development work and starting the mass production of weapons and military equipment under the armament programme.
The amount for the next year (I am giving approximate numbers) is close to 1.9 trillion roubles, for 2014, about 2.2 trillion roubles, and for 2015 the amount is approximately 2.8 trillion roubles. Therefore, we are proceeding as planned and are moving to routine and stable work on placing and implementing the state defence order.
In addition, following the State Duma vote, the Federation Council voted almost unanimously yesterday to approve a new law on the state defence order, which is supposed to establish a more flexible relationship formula between the Ministry of Defence and other Government customers and the industrial producers.
In general, I should say that things have started moving and the situation is changing, especially compared with last year, and this is good news.
Question: Mr Rogozin, these are really impressive sums. Will our businesses be able to use them up?
Dmitry Rogozin: The job is so hard because it’s all done simultaneously. First, we should supply state-of-the-art weaponry even now for our Armed Forces to have arsenals in which the latest arms make up 70% by 2020. Second, we must do everything we can to prepare industries for the task, to launch new production lines, and train specialists. This is really a challenge. However, it meets the timeframe, so we are hopeful. At the same time, we are tackling personnel problems, unifying technological policy, and doing long-term planning alongside the current updating of military equipment.
Question: Will foreign companies have access to our defence contracts?
Dmitry Rogozin: Russian law bans direct foreign participation in work on government defence contracts, but partnership is possible in principle, mainly because our industry must emulate the most advanced technology and is open to technological transfers. I don’t mean military equipment imports – we will not purchase it in the West, but we are willing to establish joint ventures that will manufacture such equipment. That is why we have begun re-equipping our industry. In fact, we are tackling two tasks at once. On the one hand, the army and the navy are implementing a rearmament programme. On the other hand, we hope that Russia will possess a truly modern industry in 2020, after it carries out the programme. In a word, we are pursuing an ambitious national goal: industrialisation.
Question: Mr Rogozin, the Government has endorsed a programme for the development of the space industry today. A major reform is ahead, as I understand. What changes should we expect?
Dmitry Rogozin: Yes, the Government has approved the state programme for the development of the space industry today. You mentioned the amount of its funding. Much effort is yet ahead. The Government and its experts will, in fact, create the industry from scratch within the next half-year because, though the ambitious Soviet space industry is our heritage, many of its plants will not be able to cope with new assignments for technical reasons. So we must set the industry explicit practical goals – both military and civil.
The industry demands thorough improvement. It is currently implementing just 40% of its potential. We must establish new teams and give a new lease of life to the plants that are able to implement space programmes. I think we will face the Prime Minister by the end of March with the idea of setting up five or six holding companies: one for boosters, another to assemble satellites, and still another to bring together troops that are involved with space. That is why we are planning quite a new industry and making progress at the planned pace.
The quality of space-oriented production is improving, though slowly. We had a series of six accidents in a row last year. This year, there was an accident in August and a technical mishap this month. It was soon dealt with. Russia is currently on par with the United States and other leading space countries for its accident rate. But we have made only the initial steps, because the space industry must discard outdated equipment. To re-equip its plants and train personnel is the only way to manufacture reliable spacecraft. We should check not the end product but production quality. The Government has set us ambitious goals. We had an outspoken conversation about them today, and Roscosmos has understood what it must do. I hope it will cope with the assignments fully and meet the deadline.