Russian enterprises not paid for 2003 state defense order

MOSCOW. Oct 29 (Interfax-AVN) - Industrial enterprises that manufacture armaments for Russian strategic nuclear forces have not been paid for the state defense order implemented in 2003, Yury Solomonov, director of the Moscow Heat Technology Institute, said on Friday.

The government does not cover the defense industry enterprises' losses caused by inflation," Solomonov told reporters.

"Mr. Gref (Minister of Economic Development and Trade German Gref - Interfax-AVN) sets deflators on the market basket level. At the same time, production of missile systems becomes more expensive at a higher pace," the director said.

"The average inflation rate (market basket inflation rate - Interfax-AVN) amounted to 12 percent in 2003, but missile systems became at least 29 percent more expenses. The difference of 17 percent is not covered with anything," he stressed.

Solomonov accused the government of being too slow in settling defense industry-related issues. In particular, a session in the Kremlin discussed yet on April 27 immediate consideration of the state of strategic missile building industry by the government, he said.

"The defense industry commission held a session on this issue only on August 20. The decision was made to set up a commission to monitor the work in the field of strategic nuclear forces development. Today is October 29, but there have been no results," Solomonov said.

According to him, if the government continues working so slow, it will be too late to consider issues.