"Today we will discuss 2010 defence spending, which has reached more than 1.17 trillion roubles, 8% more than in 2009. Defence spending has been increased considerably to support defence companies and related industries. But the most important thing is to accomplish our strategic objective: reforming the Russian Army and the Navy, improving their combat readiness and mobility."
“One more priority is to upgrade domestically sourced production. There is nothing fundamentally wrong with our shipbuilders using foreign technology and components. But we realize full well that in perspective we must develop a modern domestic industry to develop components, which would allow us to fill orders for related industries.”
“We must make similar breakthroughs in military shipbuilding. It is absolutely necessary to develop a long-term programme as soon as possible. It should meet the Navy's requirements and include current objectives based on 30-year forecasts. This is our minimum programme. a meeting on providing the Navy with new weapons and military hardware at the Admiralty Shipyards.”
"We often say that the Russian Armed Forces must become more compact, mobile and combat-effective and that the proportion of modern hardware in the equipment mix should be brought to 70% by 2020. This fully applies to the Navy, whose provision with new equipment we will discuss today."
“As the military transitions to its new, modern structure, it needs to be divested of its so-called non-core assets, or in the case of the Armed Forces, its non-core activities. Accordingly, it is necessary to develop a system for maintaining armour and automotive equipment at the manufacturer's plants. Maintaining separate auto services and tank repair plants is an unjustified and inexcusable extravagance in today's conditions. What is more, experts from the plants where the hardware is produced are better qualified to do this work. And they will receive additional funding.”
“The development of such modern and robust hardware directly depends on the unity and clarity of scientific and technical policies. Therefore, as soon as possible we need to consolidate the results of scientific research and design work, identify the most promising solutions and come up with a unified plan for future design work. I mean engines, weapons, ammunition, observation and aiming devices, as well as automated control systems.”
“The main goal of the defence industry is to supply our own military. Today we need to look to the future and keep in mind that science and technology for defence needs are developing at a rapid pace all over the world. And in the modern world, tanks and other armour, as before, remain one of the main components of any military. The manoeuvrability of forces is achieved primarily by reliable military vehicles.
"We are conducting a sector-by-sector analysis of it - including conventional weapons, rocket and space technology, the navy, anti-aircraft defence and so on. And there are lots of problems associated with the need to modernise our leading companies, because we cannot use 1950s-era equipment to produce modern weapons for our defence capacity. All of these issues are resolvable. We're resolving them and will continue to resolve them."
"As for weapons purchases and sales, we are No. 2 in the world in terms of volume of sales to foreign markets, and of course, we don't need to buy weapons from abroad to provide for our defence capacity."
“Next year state defence orders will be boosted considerably, specifically to 1.75 trillion roubles. We hope that this decision will not only allow us to begin the upcoming modernisation of the defence industry, but will also provide significant support to related companies and encourage the introduction of high technologies and the manufacture of cutting-edge materials and components. This will result in a considerable increase in the efficiency of the rocket and space industry. All the more so, because in 2010, defence companies are to supply over 30 ground-based and sea-based ballistic missiles and 11 space shuttles to the Armed Forces.”
“Despite the overall economic and industrial decline caused by the global economic downturn, the defence industry has grown by over 3% - to be exact, by 3.7% to 3.8% - primarily thanks to state support. That's not bad.”
"Traditionally the defence industry complex has been one of the drivers of technological progress in Russia. That role should be greatly strengthened and Russia should be guaranteed independent access to critically important defence technology. The Government has identified support of the defence industry complex as a key element among anti-crisis measures. The steps that have been taken have proven effective. I mentioned the overall slump in the economy, which is regrettable, but the defence industry has registered a growth of about 4% during the year. This is the result of Government support more than anything else. In 2010 the state defence order will be increased by another 8.4% to 1.175 trillion roubles."
"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 defence industry has grown by 3.8% since the beginning of this year. 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."
“As usual, we have outlined key priorities to focus on. As for the armed forces, these priorities include maintaining and boosting Russia's strategic nuclear potential, upgrading ballistic missile defence systems, equipping the army with modern attack, control, intelligence and communication systems, as well as streamlining military infrastructure in key strategic areas.”
“We will certainly continue addressing military personnel's social problems. First of all, I would like to emphasise that we decided to resolve the problem of permanent housing for military personnel in 2010, which we agreed on when drafting the budget. It is certainly a challenging task given the limited budget funds, budget deficit and financial and economic problems, but we will fulfil it. Despite the financial crisis, a total of 124 billion roubles will be allotted for this which is 50 billion roubles more than last year.”
“Despite the present challenges of the global economic crisis, we managed to maintain the same volume of state defence orders and moreover boosted it by 1.2%.”
“The volume of financing for defence-related R&D projects as well as armament and military equipment supplies will remain at almost the same level, which will allow us to continue state military development programmes.”
“This year, defence spending will grow by 15% compared to 2008. We plan to focus on large-scale rearmament and strengthening of the personnel potential in the sector.”
"This mechanism of financial encouragement of the officers who show the best service results was put into operation in January 2009. As much as 100 billion roubles will be allocated for this purpose over three years. As many as 34,000 officers, from company commanders to commanders of nuclear submarines, who show the best service results are receiving such payments, which vary between 35,000 roubles to 150,000 roubles per month. Of course, this is only the first step. I think that by 2012 all servicemen of the Armed Forces should be converted to the new system of payment."
"We will also continue working to solve the housing problems of servicemen. Last year, over 22,000 flats were built or bought for them. The plan for this year is 45,000 flats."
"The equipment in the Armed Forces is becoming more and more sophisticated, we need trained specialists, and you cannot become a specialist in two or three months. That is why a large part of the Armed Forces will be manned by contractors, and they want decent salaries and permanent housing. These are costly things and there are many problems there. So, in terms of personnel training for your sphere and training of the workforce for the country as a whole, it is an important problem."
“The Government has drafted the state defence order. The funds should be transferred to manufacturing companies as soon as possible, while the Military-Industrial Commission should strictly monitor compliance with deadlines and quality of work.”
“In the past few years, we have significantly improved supplies to our armed forces, including components, fuels and lubricants, and other important combat materials and equipment. We have made major plans to equip the army with advanced weapons and hardware, and have set a goal of ordering bulk deliveries rather than unique samples. As a result, the troops have gained an opportunity to engage in fully-fledged combat training, become more mobile, and better prepared to repel potential threats. These gains should be preserved in the future.”
“In the last few years, defence companies often had to co-finance the state defence order either with export revenues or from sales of civilian produce. However, the world economic and financial crisis is fundamentally changing this situation. Today, the state defence order is a major source of funding for these companies, allowing them to maintain production at a proper level, keep manpower, and continue technical re-equipment.”
“I expect the reforms that have been planned and are being implemented in the armed forces will certainly influence our defence capability - for the better, by improving it. This is why we are doing it. As for the dismissals you mentioned, we are not planning mass layoffs. Moreover, only the officers who are slated for retirement - the first category - will be dismissed in 2009. The second category includes officers conscripted for two years after finishing military training at civilian higher schools, whose conscription period is ending.”
“Now to the housing problem. In 2010 all officers are to be provided with permanent housing, and all servicemen will receive service housing in 2012.”