Prime Minister Putin's introductory speech:
Good afternoon, colleagues,
Today we will begin analysing the situation in the Russian defence industry. This is not just another general discussion of "our strong armour and our fast tanks" [as a popular Soviet song goes - translator], but rather a detailed discussion of the industry's problems. We will try to find solutions to these problems and come up with measures to ensure stable development in all the critical branches of our defence industry.
Today's meeting will focus on missiles and artillery. It is not by accident that we chose to meet here, at the Machine-Building Design Bureau. The bureau is a unique enterprise and one of the largest designers of Russian missiles.
Since the beginning of the crisis, we have allocated ample funds to the defence industry, one of the government's top priorities for support. In 2009, the defence industry received a total of 970 billion roubles, an unprecedented sum in the history of modern Russia.
The state employed such measures such subsidising interest rates on loans and directly contributing to authorised capital, which totalled some 70 billion roubles. In addition, the state gave companies in the defence industry the right to use state guarantees to get loans from banks.
Of course there were certain problems and setbacks, but on the whole these measures have proven effective. Against a background of overall decline in manufacturing output due to the global financial and economic crisis, basic indicators for the defence industry have remained positive.
I would like to emphasise the fact that while there has been a certain decline in all other industries due to the crisis, the defence industry has grown by 3.8% since the beginning of this year.
Naturally, this was made possible because the Government properly honoured its commitments, primarily its contracts to purchase weapons. I would like to remind you that according to our plans, the share of cutting-edge weapons and equipment in the military must be significantly increased, reaching 70-80% by 2020.
This equipment must be cutting-edge, which is the major criterion. It cannot simply be reliable, like a 1938 howitzer, which truly was a superb weapon - and I say this without irony. But we need promising, cutting-edge equipment and weapons systems. And I'm just not talking about individual orders, which was the case not long ago, but of continuous production.
The defence industry must be ready to meet these challenges, which is why it is so important not only to ensure that it continues to function and to settle all the issues related to the industry's internal restructuring and reorganisation, but also to modernise it quickly, increase its R&D capabilities, and significantly increase the quality and reliability of the equipment it manufactures.
I know that the Russian defence industry can work wonders. However, we do not need just any wonders, but wonders that can increase Russia's defence capabilities at an affordable price. This is what I would like us to focus on.
Let us begin today's discussion.