19 Apr, 2022 10:02
Top official explains why Russia hasn't run out of precision missiles in Ukraine
The country’s defense industry carried out extensive modernization for years, says the Deputy Prime Minister in charge of the process
Russia going after fake news, don’t worry we’ve got the missiles we need. Kek
Contrary to Western expectations, Russia hasn’t run out of precision munitions during the now almost two-month-long conflict in Ukraine. RT spoke to Yury Borisov, Russian deputy prime minister in charge of defense procurement, about the state of the nation’s defense industry and the impact of Western sanctions.
RT: Mr. Borisov, the West has imposed unprecedented sanctions on Russia, measures that the Kremlin has dubbed an overt economic war. Can you tell us how state defense procurements are functioning under this pressure?
Yury Borisov: We don’t see any serious threats that could undermine our work on the planned tasks in state defense procurement. Perhaps this is a result of our Western partners keeping us on our toes since 2014. We have had plenty of time to adapt to the continuous sanctions they have been introducing against Russia. We now have import substitution policies in place, and we have accumulated a necessary reserve stock of critically important materials and components. Therefore, Russia’s current state defense procurement program is under no threat.
I would say that today’s situation in defense procurement is even better compared to the previous years. We already have contracts for 88% of our annual commitments. In previous years, we would not normally get to this figure before the end of May. And the cash execution of the state budget looks really good.
This has to do primarily with the fact that given the current situation around the sanctions against Russia’s financial institutions, which necessitated an increase in the key rate, we are trying to use the budgetary resources appropriated for the defense procurement program as much as we can.
The customers of state defense procurement and acquisition – mainly Russia’s defense Ministry, but also other government agencies – actively employ the 100% prepaid model for procurement of basic electronic components, basic materials and component parts. This provides hedging of risks related to nonperformance and helps build up a reserve stock. We are absolutely certain that by the end of this year, the mean annual share of completed contracts will reach 97-98%. This has become our standard already. However, all outstanding obligations to the key customers are usually cleared in the first quarter of the following year.
RT: Import substitution must now be among the top priorities, and more urgent than ever before, especially when it comes to the defense industry. Just an example, from my own experience, I was recently near Kiev, and the military vehicles that were taking us, the reporters, on assignments were Typhoons. They are impressive vehicles, but…
Yury Borisov: There are several variants. Which one were you using, was it a four-by-four armored vehicle?
RT: No, it was a six-by-six.
Yury Borisov: So it was a KAMAZ Typhoon vehicle, I see. (KamAZ-63968 Typhoon-K – RT).
RT: Yes, absolutely, it was a KAMAZ Typhoon vehicle, right. But, for instance, it has Michelin tires. The transmission gearbox is imported too, and lots of other parts, so that the mechanics say they don’t even know how it’s going to be now regarding spare parts. And, as far as I know, Typhoons are not the only example of a really great Russian vehicle that people are now having questions about in terms of maintenance. Do you have an answer to these questions?
Yury Borisov: Of course, I do. We had a number of meetings with major manufacturers regarding both Russia’s state defense procurement program and the automotive industry on the whole.
It surely is a very challenging situation for our automotive industry now that some key components are no longer available.
If we consider the entire range of the vehicles we produce, from trucks to buses, including passenger buses, we will see that the extent of locally manufactured content is very different. The share of foreign-made components can be very different. This industry is undergoing a considerable change today, just like Russia’s entire economy and all other industries. Changes are being introduced into the supply chains; we’re bringing in new suppliers. Of course, it means that production will slow down, obviously. We are open about this….
https://www.rt.com/russia/554134-borisov-interview-defense-industry/