Moscow : The Russian government plans to use price regulation mechanisms for state defence contracts, a deputy prime minister has said.
‘I believe it is extremely important to enshrine in law the concept of ‘the state regulation of prices for arms and military and special equipment’, and apply this mechanism to all defence contractors,’ Sergei Ivanov said while addressing the country’s lower house of parliament.
He also said the government was determined to intensify ‘anti-trust regulation’ with regard to suppliers of major technical resources, raw materials, parts and components used in the production of arms and military equipment.
He said Russia’s defence industry would need 295 billion roubles ($8.2 billion) in loans this year to ensure the smooth operation of its enterprises.
Ivanov also said Russia’s 2009 arms exports would remain at the previous year’s level.
The Federal Service for Military Cooperation earlier said that arms exports would rise from $8 billion in 2008 to $8.5 billion this year.
Russia’s deputy defence minister had said that state defence contracts would not be subject to cuts this year despite the ongoing financial crisis.
The defence ministry is to transfer 65 billion roubles ($1.9 billion) to producers before the end of this month, with 35 percent of military contract payments to be transferred in the first quarter of 2009.
The government is to disburse a total of 1.3 trillion roubles ($37 billion) to defence contractors this year.
The state arms production budget for 2009-11 has been approved at 4 trillion roubles ($115 billion).