Putin Demands New Plan for Defense Industry Overhaul

Russian President Vladimir Putin on Monday urged the government to draft a new defense industry modernization program that includes increased private investment and improved social benefits for employees.

"This program must be tailored so that enterprises are modernized in parallel with the resolution of these social issues,” Putin said during a meeting with Deputy Prime Minister Dmitry Rogozin.

Rogozin, who oversees the Russian defense industry, now faces the formidable task of streamlining weaponry development and production in the country.

"This is an acute problem and you must take the appropriate steps in line with the state defense order,” Putin said.

The president stressed the importance of direct support for the defense industry from both the state and the private sector.

Russia’s defense industry brings together 1,353 organizations and companies in 64 regions of the country, and employs over 2 million people.

The government has allocated 20 trillion rubles ($641 billion) to the comprehensive rearmament of Russia's Armed Forces. It is hoped this will see the share of modern weaponry reach 30% by 2015, with this figure rising to 70% by 2020.

An additional 3 trillion rubles (approximately $100 bln) in public funds and about the same amount in private investment have been allocated to modernize the defense industry over the next decade.