|
 The country's defense spending will be watched closely this year,
mainly in view of events in Ukraine, with Western nations accusing
Moscow of providing weapons and soldiers to a separatist revolt in
the country's east. Russia denies it has troops in eastern Ukraine.
Last month, Finance Minister Anton Siluanov said there should be a
10 percent cut across all sectors of government spending except for
defense, which was considered ring-fenced by President Vladimir
Putin.
However, even favored "power ministries" are beginning to feel the
pressure of Russia's economic crisis and Sergei Chemezov -- a key
ally of Putin and among those targeted by Western sanctions over
Ukraine -- indicated on Monday that cuts could even impact the
military.
"It could shrink a bit, within 10 percent, but a decision is not yet
made," Chemezov told a news conference on the sidelines of a defense
conference in Abu Dhabi, the capital of the United Arab Emirates.
 Having argued in September that Western-imposed sanctions would not
impact Russia's defense industry, Chemezov admitted changes were
having to be made in response.
"Sanctions have given us a kick to produce our own (equipment),"
said Chemezov. "Before sanctions we procured from Ukraine, which has
many defense plants and factories. By 2017, we plan to substitute
all our imports."
In the absence of high oil prices, which have slumped since hitting
their peak in June, defense equipment would be a useful source of
hard currency for the Russian authorities, and Chemezov said the
current strong dollar was beneficial for its arms exports.
[to top of second column] |
Russia has an order book worth $40 billion dollars for weapons over
the next three to four years, with the biggest buyers coming from
India, China, the Middle East and Latin America, Chemezov added.
Rostec has stakes in some of Russia's largest industries and
partnerships with foreign companies, with interests in weapons, cars
and metals.
It is expecting to have recorded sales of 1.3 trillion roubles
($20.2 billion) in 2014, up from 1.04 trillion roubles in 2013,
Chemezov said, adding results would be released in March.
(Writing by David French; Editing by Alison Williams and John
Stonestreet)
[© 2015 Thomson Reuters. All rights
reserved.]
Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
