Russian Defense Ministry to support new integrated defense industry structures with state orders

MOSCOW. Feb 24 (Interfax-AVN) - The Russian Defense Ministry thinks it is important to support new integrated defense industry structures with state orders, Armed Forces armament chief Colonel General Alexei Moskovsky said at Tuesday's meeting of the Board of the Russian Control Systems Agency in Moscow.

"The Sozvezdiye and Vega holding companies being created in the Russian Control Systems Agency, as well as the Almaz-Antei Consortium, are structures that determine not only the R&D in their sphere, but also the development of the industry as a whole. The Defense Ministry, as the main customer, has always supported the policy of creating such structures. Our support is our defense order," he said.

He said that in 2003 not a single consortium had large state defense order. As a result, many vertically integrated structures failed to manage relations between their own parts.

This, Moskovsky said, was a common problem of the agency and of the Defense Ministry.

CEO of the Russian Control Systems Agency Gennady Kozlov said at the same meeting that currently the industry has 10 holding companies, and another 12 are being created. In 2003, he said, no consortiums were created, while in 2004 a number of consortiums should be finalized, including a consortium producing friend-or-foe systems.