OREANDA-NEWS. October 27, 2009. In his opening remarks, the President said that an effective defence industry is essential for successfully modernising Russia’s armed forces and strengthening its position as an arms exporter. But despite efforts to support the sector, defence industry companies continue to modernise at a slow pace.

Bringing down the production costs of the sector’s goods is an essential measure for making sure the industry stays competitive, Mr Medvedev said. Prices for arms and military equipment should be such that the country’s armed forces can make batch rather than item-by-item purchases, and should also be attractive for Russia’s partners abroad.

The President raised the issue of quality in the sector and development of the most advanced weapons. The adoption of a targeted federal programme for the sector could be one solution to the quality problem, Mr Medvedev said.

The President also cited the need to improve the laws regulating state defence procurement and improve coordination and discipline in the relevant state agencies.

Mr Medvedev said that work on structural reorganisation of the armed forces will be complete in two months time. The next task – upgrading the armed forces’ arms and equipment – is a more complex undertaking and requires greater effort from the country’s defence industry.

The meeting took place at NPO Mashinostroyeniya, one of the leaders in manufacturing high-performance missile systems and spacecraft.

Before the meeting began, Mr Medvedev visited the companies’ workshops, in particular, inspecting a unique facility for testing missiles’ heat resistance, the Bastion mobile coastal defence missile system, and the Strela two-stage booster rocket, which after its period in military service can be re-equipped for putting satellites into orbit.