Vladimir Putin's address at the meeting with the top managers of the MiG Aircraft Corporation:

Good afternoon, colleagues,

Today we'll discuss the situation at this enterprise. This is a legendary corporation. It is not only a strategic company, but a symbol of domestic aircraft building. It would be no exaggeration to say that it is probably one of the world's biggest.

Since its formation, the corporation has built 60,000 combat aircraft, including 57,000 jet fighters. They were supplied to 27 countries, and are now being supplied to 50. Previously, aircraft had been sold to 54 countries, the overall fleet numbering about 5,000 planes, or 4,800 to be exact.

It goes without saying that we should focus on such companies, particularly during the financial and economic crisis. We will continue to conduct permanent financial monitoring of the company, and give it financial and administrative help.

In the last few months, the corporation has faced serious problems. In the past year, its losses amounted to 11 billion roubles and debts to almost 45 billion roubles, or 44.8 billion, to be exact. For a long time, it has guaranteed its solvency exclusively by taking loans. In the last three quarters it spent almost 4.5 billion roubles, or 4.4 billion, to be exact, on interest payments alone. Its financial position has been further aggravated by the return of some of the exported aircraft.

I'm convinced that we should draw serious conclusions from this experience, particularly on the quality and competitiveness of what we produce.

Naturally enough, the Government could not ignore this situation. At the November meeting we adopted together with you a number of priority measures aimed at the company's financial recovery. I'd like to brief you once again on the planned measures - the MiG open joint-stock company will receive 15 billion roubles to increase its charter capital by issuing additional shares. The Government has already signed a relevant decree.

Secondly, the company has been awarded a state contract worth 17.3 billion roubles. As was just discussed, the Defence Ministry will pay 11 billion roubles in the first quarter. At the same time, we hope that the company will itself make a serious effort to improve its financial condition by streamlining spending, reducing costs, refinancing debts (I rely very much on the understanding of financial institutions), finding more effective forms of production cooperation, and begin reorganising the system of management and post-sales support. This has always been a weak spot in our equipment, and we should pay it special attention.

I also think that the company should boost its exports, conduct an offensive in the foreign markets, and take part in promising projects and tenders. There are opportunities for that, and the Government will give you every support. This primarily applies to the MiG-29 aircraft and the modern multi-functional MiG-35 fighter that is being currently developed.

Let's discuss these and other problems of your company. I'd also like to hear your thoughts on the key directions of the company's development and discuss additional measures for its financial recovery.

Please, go ahead.