Venezuela will buy $5 billion worth of arms from Russia
After Prime Minister Vladimir Putin's visit to Venezuela, thirteen Russian defence companies are to receive large orders from the government.
After returning from Caracas, Putin announced the sum total of military contracts with Venezuela at a debriefing on the military and industrial complex's development. The country may order over $5 billion worth of Russian weapons and military equipment. The figure includes a Russian loan of $2.2 billion granted to Venezuela in September 2009. Hugo Chavez, however, is in no hurry to take Russian money. He simply thanked Moscow for its understanding.
"As you know, Russia has supplied the world's most effective aircraft systems, Su-30 fighter jets and other military hardware to Venezuela at prices lower than world rates," Putin said.
Russia recently delivered the last four of an order of 38 helicopters to Venezuela.
In total, Venezuela has purchased $4 billion worth of arms from Russia since 2005, including fighter jets and Kalashnikov assault rifles. It also plans to buy T-72 tanks and Smerch multiple rocket launchers.
The prime minister praised the work of defence companies on world markets and promised that the government will continue to support arms exports. Putin believes that most defence industry enterprises have considerable potential for expansion, and their products are by no means inferior to their foreign analogues, and may even surpass them. However, the sector must be modernised, he said, as it is impossible to create a new image for the armed forces without a modern defence complex.
Meanwhile, the budget funds allocated for its modernisation have not always brought the desired return, the prime minister said. Therefore, today, in a time of crisis, Russia will have to concentrate resources on breakthrough trends, he added. The government will only offer benefits and state support to companies that present distinct modernisation programmes.
At the meeting, Putin also recalled numerous setbacks in the interaction between state customers and equipment suppliers and stressed that 40% of the R&D work has not been implemented.
"Money is spent, specialists work, and the results get shelved," the prime minister complained, promising to order a comprehensive audit of the R&D work at defence industry enterprises.
Pierre Sidibe