MONOPOLIES NOT LETTING RUSSIAN DEFENCE INDUSTRY COMPETE WITH WEST

MOSCOW, May 4 (AVN) - The loss of state control over monopolies producing raw materials for the industry deprives Russian defence enterprises of a possibility to compete equally with Western companies, Yevgeny Kablov, director general of the All-Russian Aviation Materials R&D Institute, said on Thursday.

By now, the price of raw materials makes already 60 percent of the cost of turbojet aviation engines, Kablov told the Military News Agency.

Norilsky Nikel JS and the Verkhnesaldinsk metallurgic enterprise, who are the monopolists in production of nickel-tantalum-titanium sponge, have made the prices for their products groundlessly high and far above the average international level. The situation is the same with several chemical industry products, such as special rubber, Kablov stressed.

According to him, the state should assume a tougher stance in pricing metallurgic and chemical products for enterprises executing the defence order. First, it should compile a list of chemical, petrochemical, metallurgic, and dressing plants, as well as another one comprising strategic materials which would be sold to the defence industry enterprises at controlled prices.

This measure should be authorised by a government resolution, the director added.