Russian Prime Minister on military-industrial sector's development

The establishment of large integrated structures inside this country's military-industrial sector is an essential pre-condition of long-term sectoral development, Russian Prime Minister Mikhail Kasyanov told a regular Cabinet session today. Among other things, this session examined the implementation of the federal target program for overhauling the military-industrial sector over the 2002-2006 period.

The establishment of large integrated structures is needed to concentrate production facilities and R&D divisions for the sake of accomplishing sectoral objectives, Kasyanov informed those present. Essential concentration is the defense industry's future, also constituting its salvation, the Prime Minister stressed.

At the same time, sectoral-reform measures are being implemented rather slowly, Kasyanov went on to say. Four large integrated structures were created over the last two years; meanwhile we intended to set up more than 40 such entities in line with the entire program. We are obviously unable to attain the program's goals on time, Kasyanov noted.

The program mostly aims to overhaul the military-industrial sector, which can and must accomplish military-development objectives, which were formulated by the President of the Russian Federation, also implementing army modernization programs and elevating our Armed Forces to an entirely new qualitative level, Kasyanov stressed.

We are witnessing positive movement, with national economic development and greater budgetary revenues making it possible to repay all debts being owed to sectoral enterprises in line with the state defense order; moreover, the volume of sectoral orders continues to increase by one-third each year, the Prime Minister told his audience.

In his words, this made it possible to improve sectoral development. The defense industry is getting additional investment, i.e. state investment, for the most part; meanwhile ample private investment opportunities exist, Kasyanov noted in conclusion.