The Head of “Rostekh” Sergei Chemezov in an interview with The Wall Street Journal suggested that the state defense order would be reduced by 10% in 2016. Previously the Defense Ministry said that the reduction in military expenditures would not affect the arms.
According to the Head of “Rostekh” Sergei Chemezov, the state defense order will be reduced by 10% in the current year, but this will not be critical for the military-industrial complex. “I think that the state defense order will be reduced by 10%” - he said in an interview with The Wall Street Journal, answering the question whether the reduction will exceed 5% this year. Chemezov also confirmed that the reduction of expenditures on the state defense order had already begun. He explained that the defense budget reduction was understandable taking into account the fall in energy prices which constitute the main source of state income. Speaking about the programs that can be frozen, Chemezov said that the President and the Prime Minister had decided that the ongoing projects should be brought to an end.
Author: Anna Dorozhkina