25 february 2009

Deputy Prime Minister Sergei Ivanov addressed a meeting of the State Duma during its “Government Hour.”

Participants:
The Deputy Prime Minister said that state regulation of prices of weapons and military equipment should be formalised in legislation.

Mr Ivanov said that the implementation of the state defence order in 2009 should focus on the development of the country's strategic nuclear forces. "This will be expensive, but this is the only possible path to take," he said.

While addressing the issue of the state defence order, the Deputy Prime Minister said that it gave precedence to three areas - the acquisition of new weapons and military equipment, research and development, and the repair of weapons and military equipment.

Considerable attention is also given to fuel-purpose and military space equipment and information systems, Mr Ivanov said. He added that there were plans to buy modern aircraft for the Russian Air Force and to create a fifth-generation combat aircraft. He said promising civilian aircraft projects included the creation of the Sukhoi Superjet 100 and the MS-21 civilian aircraft. Surface warships are to be purchased for the Navy; however, the number of these categories should be limited to corvettes and frigates.

The Deputy Prime Minister said that state regulation of prices of weapons and military equipment should be formalised in legislation.

"I consider it highly important also to formalise the notion of state regulation of prices of weapons and of military and special equipment in legislation, and to apply this mechanism to all contractors of the [state defence] order," he said.

In speaking about the export of Russian weapons and military equipment, Mr Ivanov said that the demand for Russian military exports had not diminished. "All export contracts are being fulfilled - no parties have withdrawn from them," he said.

Mr Ivanov also remarked that the defence industry had been affected by the "crisis of demand" to a lesser extent compared to civilian industries. He explained it on the basis that the defence industry is connected with the state defence order and allocations from the federal budget.