MOSCOW. Feb 10 (Interfax) - Russian Deputy Prime Minister Dmitry Rogozin has said that the government will be regulating prices under government defense contracts.
"Due to the current political and economic situation, as well as in accordance with the state price regulations, we will extend state regulation of prices to all products supplied under government contracts," Rogozin said at a meeting which focused on price formation in the defense industry on Monday.
Besides this, the government will be monitoring the use of public funds when placing a defense order, Rogozin said.
The Defense Ministry, in cooperation with the Russian Financial Monitoring Agency, have prepared and approved a plan to create such a monitoring system, he said.
The plan prescribes a legal framework for preparation and use of information concerning cooperation between contract parties, the list of authorized banks which will process payments under government contracts, and the exchange of information between the governmental customer, the contractor and the authorized banks, Rogozin said.
The principle of quoting and booking that has long worked mainly for petroleum products, will now be extended to raw and strategic materials required for manufacturing military hardware, he said. .
"These rules should be extended to raw and strategic materials that are needed for making arms and military hardware for the prices existing on the domestic market," Rogozin said.
In addition, the Federal Agency for State Reserve (Rosrezerv), which is in charge of stockpiling emergency supplies, should be given broader powers in using such supplies to ensure implementation of government defense programs and assignments, given the current political and economic situation, he said.
The nomenclature of the agency's emergency supplies and rules for their stockpiling will be changed accordingly, Rogozin said.