Medvedev: Defense Industry Will Face Great Reforms

21.11.2011 Russian defense industry will face great reforms, said Russian president Dmitry Medvedev.

"It is of critical importance to manage personnel and reduce expenses... Some Russian factories are as large as particular cities at the West, and we clearly understand their maintenance costs tens or even hundreds of millions. We should control that rationally. Perhaps, some territories must be sold in order to reduce expenditures. In this context, our defense industry will face considerable changes", Medvedev said addressing the press conference in Privolzhsky federal district.

He reminded that an unprecedented state arms procurement program had been recently adopted in Russia.

"The program is colossal. To adopt it, I had to explain 'the party politics' to ministers. Some of them even lost their job. Our industrialists should appreciate that", pointed out the president.

He emphasized that funding must be won in a tender.

"Prices should be more transparent as well. Sometimes price is a result of numerous agreements between production chains. Those are too high and noncompetitive prices", Medvedev said.