September 19, 2019 21:40 Izhevsk
President of Russia http://en.kremlin.ru/events/president/news/61578
Vladimir Putin held
a meeting of the Military-Industrial Commission
of the Russian Federation at the Kalashnikov Academy Youth
Technology Park.
After
the meeting, in the presence of the President,
the Defence Ministry signed a long-term contract with
the Izhevsk Electromechanical Plant Kupol for the delivery
of Tor-M2 and Tor-M2DT air defence missiles for the Russian
Army; the Government of Udmurtuia signed a cooperation agreement
with Roscosmos State
Corporation on establishing the Kosmoquantum Laboratory
at the Kalashnikov
Academy Youth
Technology Park.
Beginning of the Military-Industrial Commission
meeting
President of Russia Vladimir
Putin: Good
afternoon, colleagues.
At this regular Military-Industrial Commission meeting
in Izhevsk, one of Russia’s arms capitals, we will discuss key issues
of developing the industry’s facilities and enhancing their
economic stability and competitiveness.
First, I suggest we focus on implementing the import
substitution programme in the
defence industry. Let me remind you
that this was launched five years ago, and during this time, we have
managed to move forward in some areas, in some important areas
at any rate.
The share of electronic components in modern arms has
increased substantially. The production of engines for Navy
helicopters and ships has been organised. I would like to add
that soon it will be possible to service engines for An-124 aircraft
at Russian plants. Overall, the technological self-sufficiency
of over 350 types of arms and equipment has been achieved under
the import substitution schedule.
Colleagues, we are marking Gunsmith Day, but right now, we are
at a production conference rather than a celebration
and for this reason I also have to talk about issues
of concern.
This is what I want to say. Practice shows that
in a number of cases obvious mistakes were made in planning
and organising import substitution. As a result, deadlines
for several assignments of the state defence order had
to be suspended in 2018. Considering that all our plans
to upgrade the army and navy are comprehensive
and interlinked, these schedule overruns must be promptly eliminated.
In this context, the Government and the relevant
agencies must take additional measures to ensure technological
self-sufficiency in military production, including projects
in the design stage. Today we will talk about this in detail and meticulously
review the issues of concern.
The second issue on the agenda is related
to the continuing diversification of the defence industry.
To reiterate, the future of defence industry companies
and their economic, technical and financial stability, their ability,
as we have noted many times, once defence orders are past their peak
to cope with their core tasks and to increase the output
of competitive civilian products that enjoy demand both
on the domestic and foreign markets depends
on the effectiveness of actions in this area.
We have discussed this many times. I said that the programme
was launched five years ago. This was discussed in Tula in 2016, then
twice in Ufa and in Moscow in 2018. I mentioned this
in my Address. We have all this in the documents.
I already noted at today's Gunsmith Forum that the share
of civilian products in the defence industry totaled nearly 21
percent, 20.9 percent actually, in 2018. This looks good, but, you know,
the pace is still not good enough, let me tell you that.
Defence industry companies have announced plans to implement over
400 projects to manufacture such products. Thus, in the coming
years, nuclear and diesel icebreakers for the Northern Sea Route
as well as cruise and fishing vessels will be built at shipyards
that were traditionally used for building Navy ships and products.
In 2021, Irkut Corporation plans to begin delivering the MS-21
mainline aircraft.
To reiterate, the opportunities
offered by national projects should be widely used in our efforts
to diversify manufacturing enterprises. The potential demand
for civilian output from defence companies now exceeds 5,500 items.
With earlier issued instructions in mind, I would like
to hear today what measures are being taken to encourage
the production of civilian output by defence industry companies
and to promote this in domestic and foreign markets, how
the Government has involved defence industry companies in carrying
out national projects, and how things are going with contracting.
I mentioned this when I spoke at the gala meeting:
vast amounts of money are allocated in many areas. Defence industry
enterprises should get involved and receive these resources. However,
in order to receive these resources, it is necessary to make
proposals that may be of interest to a variety
of industries.
The third item on the agenda concerns the financial
recovery of defence contractors. An operational headquarters has been
monitoring and controlling the financial condition of defence
contractors since 2015. It has become clear that the arising problems are
largely related to big loan portfolios or a heavy debt load,
in simpler terms.
We have repeatedly discussed this issue, for instance,
at meetings in Moscow and at integrated conferences
on the development of the Army and Navy in Sochi.
We determined that the shortage of capital is the result
of many things including under-utilised capacity due to reductions
in orders and the costs of financing R&D; research
expenses were not accounted for in the planning documents.
I would like to return to these issues today
and listen to specific proposals on the systematic
improvement of the situation and on consolidating
the financial position of contractors, especially strategically
important ones.
We also have to allocate authority to the heads
of priority technological areas. Fourteen of them have already been
appointed. Today we will discuss another four candidates.
These managers and organisers are receiving
serious authority and their responsibility is also high. They must play
a key role in developing breakthrough technologies for the production
of advanced arms and equipment prototypes that will determine
the future image of the Russian Army and Navy.
Another important event will take place after this meeting. The Izhevsk
Plant Kupol and the Defence
Ministry will sign two long-term contracts worth a total of almost
100 billion rubles. Under these contracts, Tor air defence missile
sstems – the Tor-M2 and Tor-M2DT – will be produced
and delivered to the Army in 2019–2027. Implementation
of these contracts will strengthen the position
of the plant, and these new types of arms will be
an important contribution to arming Russian Aerospace Forces.
Let us discuss the proposed issues.
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