Meeting with CEOs of defence industry enterprises

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Opening remarks at the meeting with CEOs of defence industry enterprises

President of Russia Vladimir Putin: Good afternoon, colleagues.

We have been planning this meeting for a long time, so that we could meet and talk. Now that the new Government has been formed, we are making arrangements for this sector as a whole. I think that this is the right time for us get together and coordinate our approaches.

Today, we are going to discuss a range of issues concerning the future of Russia's defence industry, including how deliveries of the most essential weapons and equipment are progressing. I should note that most enterprises are fulfilling the defence procurement orders on time, to the standard, and even ahead of schedule for a number of items.

It is important to continue to step up of efforts to ensure the regular provision of the Armed Forces with advanced, high-tech weapons and equipment. These include unmanned aerial and ground systems, high-precision munitions, electronic warfare systems and counter-battery systems, various types of communications for stable and continuous command and control, and other products.

You are very well aware of the fact that we have substantially increased our output recently, over the last year and a half or two years, that is over the period of the special military operation. From 2021 to 2023 (these figures change constantly, they are increasing), the growth was more than 22 times for missile and artillery weapons, 15 times for electronic warfare and reconnaissance equipment, 14 times for ammunition and munitions, seven times for vehicles, six times for body armour equipment, four times for aviation equipment and unmanned aerial vehicles, and almost 3.5 times for tanks and armoured vehicles.

This is a good pace and a large volume. I would like to thank you and your teams for coping with such formidable challenges.

As I have already said, building an effective economy for the Armed Forces is essential today. We all understand that the Armed Forces are part of the national economy in general, considering the amounts we spend on this sector. This means that it must be organised accordingly in order to generate returns on every ruble we invest in it. This must benefit the economy as a whole rather than just the Armed Forces. I will elaborate on this matter later in my remarks.

What I want to hear from you today is a progress report on signing contracts with manufacturers, advance payments, and planning defence procurement orders, whether there are any challenges which have yet to be addressed.

I have taken several decisions to streamline repairs and restoration efforts for arms and equipment so that this hardware can return to the combat zone as quickly as possible. I would like you to report on how you are making this happen.

There was also an instruction to introduce the latest technology and innovative solutions at a faster pace so that we keep improving and perfecting the tactical and technical characteristics of our weapons and equipment taking into account our experience in using them in combat.

Once again, I would like to emphasise that we must always be one step ahead. We have to always be one step ahead of the adversary, and then victory will be guaranteed. You know this. Your specialists and you personally always remain in touch with our men fighting on the line of contact without sparring themselves to defend Russia's interests. Whenever we manage to get an edge, no matter how slim it is, this increases our effectiveness manyfold.

We must also be effective when using assets supplied by the so-called grassroots defence manufacturing sector. We must enable it to develop and expand its manufacturing operations, and introduce a fast-track procedure for supplying its most effective solutions to the army.

Finally, I would like to draw your attention to diversifying the operations of our defence manufacturers to launch high-tech production in civilian manufacturing. This is what I have just spoken about. Delivering on this systemic objective is instrumental for streamlining the defence sector's manufacturing potential and helping talented professionals advance their careers. Overall, this would create a more sustainable footing for defence manufacturers by offering them a solid economic and financial foundation in the long run.

Over the previous years - I mean really years: not a year and a half or two years related to the special military operation, but years - we have been building up the structure of the defence industry accordingly. The enterprise, the corporation where we are, was established in March 2003, and in 2002 decisions were made to rebuild the defence industry as a whole. The executive order to this effect was signed in 2002. That is when we launched this effort. At that time there were six enterprises of this kind, but today there are 56.

Later in our conversation we can discuss efforts to further improve the structures necessary to ensure and enhance the defence capability of the state.

Let us start.

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