MOSCOW. April 25 (Interfax-AVN) - The Russian Audit Chamber has registered a decrease in the level of state financial control in the military-technical cooperation sphere, a competent source in the chamber told Interfax-Military News Agency on Friday.
"Results of checks show that the share of the state order in the total arms exports volume declined from 63 to 55 percent, while the budget funding share fell from 18 to 11 percent in 2000 and 2001. At the same time, the share of commercial contracts grew from 37 to 45 percent and the extra-budget funding share from 82 to 89 percent," the source said, citing data obtained by the inspection in charge of military-technical cooperation.
The tendency towards the increase in the share of commercial contracts and extra-budget funding volume is explained by terms of contracts that are more profitable for production plants and the Rosoboronexport state-owned arms trade in case funding is provided from extra-budget sources. "In particular, the volume of commission is higher, and there are no profitability limitations that are only valid for the state defense order funded by the federal budget," the source said.
As a result, state financial control in the sphere of military technical cooperation with other nations has declined, and Russia's national interests are not taken into account, he added.