The Government is not planning to cut the state defence order
Vladimir Putin visited the Russian aircraft-building corporation MIG yesterday and presided over the first meeting of the Council of General and Chief Designers, leading scientists, and experts in the field of high technology set up by the Russian Prime Minister in October 2008. "I simply wanted the people who generate the main ideas and organize this process to feel that they have a direct link to the country's leadership," the Prime Minister said when opening the meeting.
The main good news for those gathered in the MIG conference room (mainly General Directors and General Designers of defence industry enterprises) was that the Government had decided not to cut the state defence order.
"After a thorough analysis of the budget potential, we made a final decision not to reduce the state defence order in any major way," Vladimir Putin said, announcing the good tidings.
In 2009, it will exceed 1 trillion roubles and in the three-year budget it will be almost 4 trillion roubles. The decision not to cut the defence order is critical for many Russian enterprises. According to Alexei Litvinovich, Chief of the MIG Design Bureau, MIG-29 planes used by the Russian Army are being modernised as part of the state defence order. Before the end of the year, about 20 new MIGs will be procured. Vladimir Putin said that the state order for MIG-29 SMT (generation 4+) will amount to 17.3 billion roubles. A new regiment of 28 new planes will be formed soon, Mr Litvinovich said.
Vladimir Putin promised additional aid to MIG. As part of the rehabilitation of the company, the federal budget has earmarked 15 billion roubles to increase its authorized capital, with 11 billion roubles to be disbursed in the first quarter of 2009. MIG needs the money because it is 44.8 billion roubles in the red after sustaining 11-billion-rouble net losses in 2008.
Furthermore, Russia will bid to deliver 126 MIG-35 generation 4++ fighter planes to India. "We are going to win that tender, I am 100% confident," Alexei Litvinovich said. However, MIG has serious rivals in Lockheed-Martin Corporation (US), Boeing (US), Dassau-Bregge (France), SAAB (Sweden), and the European Aeronautic Defence and Space Company (EADS). According to Mr Litvinovich, the first planes under the contract would be delivered to India as early as August 2009.
However, in recent years advanced Russian planes have been made mainly for export and have not been supplied to the Russian Armed Forces. The MIG-35 plane will not reach the Russian Army until four years from now, and then only if we win the Indian tender, Mr Litvinovich said.
Andrei Biryukov
