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More news from Reuters

Medvedev orders probe into Russian arms contracts

Wed, 6 Jul 2011 15:36 GMT

Source: reuters // Reuters

* Medvedev demands explanation from minister of defence

* Top weapons designer says arms purchase programme failing

By Alexei Anishchuk

GORKI, Russia, July 6 (Reuters) - President Dmitry Medvedev demanded a probe on Wednesday into comments by a top weapons designer that Russia's arms procurement programme is failing, endangering the military's much-needed modernisation.

Medvedev ordered Defence Minister Anatoly Serdyukov to look into a claim by the designer, Yuri Solomonov, that the procurement plan for 2011 had been thoroughly botched and that weapons makers were failing to produce enough nuclear missiles.

"Anatoly Eduardovich, I would like you to get to the bottom not only of this information but also the situation as a whole," Medvedev told a visibly flustered Serdyukov via a video link.

"If the situation is as described by some of our colleagues, then organisational conclusions need to be drawn in respect of all those who are responsible for this in the government, irrespective of their ranks and titles," he said.

Despite its status as the world's second-largest arms exporter, military analysts say Russia's defence industry has stagnated since the collapse of the Soviet Union.

Prime Minister Vladimir Putin has promised to spend nearly 20 trillion roubles ($717 billion) on the modernisation of Russia's military, dogged for years by poor equipment, outdated technology and a lack of financing.

Medvedev has repeatedly warned Russia's notoriously corrupt defence sector to clean up its act and this year sacked several industry chiefs over what the Kremlin said were unfulfilled contracts.

Solomonov told the Kommersant newspaper in an interview that Russia's arms contracts would remain in a dire state for years to come.

"From what is happening now, we can conclude with absolute certainty that this weapons programme faces the same fate (as years past)," Solomonov said.

"The government order (procurement plan) in 2011 has already fallen through: It will fail due to the fact that, to date, not one contract, when it comes to strategic nuclear forces, has been fulfilled."

Russia's chief military prosecutor said earlier this year that a fifth of Russia's defence budget was being stolen.

A combination of corruption, lack of money and organisational failures have hamstrung Russia's past arms contracts programmes. (Writing by Thomas Grove; Editing by Kevin Liffey) ($1=27.90 Rouble)

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