MOSCOW. May 20 (Interfax-AVN) - It will take over RUB100bn (USD3.2bn) to change the Russian Armed Forces over to a contract service basis, Defense Minister Sergei Ivanov told the press after a Monday meeting with President Vladimir Putin.
The exact amount will be calculated by the end of 2003, he said.
The conference, which was chaired by Putin, focused on military reform, primarily contract service, the minister said. He said they discussed the Pskov division of the Airborne Troops as an example.
The division alone will need RUB2.6bn (USD83.17m), and more than 70% of the funds will be spent on construction, Ivanov said. The division will have to build a settlement for 1,000 servicemen and upgrade its services.
This year the government will assign RUB700m (USD22.39m) to the Defense Ministry for putting the Pskov division on a contract service basis.
The change over will be completed by fall 2003.