President Putin’s “secret” decree to write off defense industry debts


I noticed a strange feature of our person. We are terribly fond of knowing that which is not to be known. I don’t understand why. Maybe knowledge of something so special increases the importance of a person in his own eyes. Or maybe it serves as evidence of belonging to a certain caste of the elect. I repeat, for me this is not very clear.


And at the same time, convincing everyone of our exceptional knowledge of a certain subject, we will not hit finger in finger in order to understand what knowledge we possess. One to another, in great secret, whispered a "big secret", which is no longer a secret.

Probably, everyone came across a balabol who “served where no one ever did” ... However, you should dial his military unit number on the Internet, and you know not only the location, but also the names of the commanders, weapons and all other details. Our people, and this is the third feature of our people, will tell everything in the Internet inter-friends.

In about this situation, I was recently. In great secret, one friend opened my eyes to the state of our defense industry. “In fact, we have full joints at our defense industry enterprises! Putin recently signed a secret decree to write off debts from these plants. They don’t have orders, which means they don’t have money to pay everything to everyone ... ”It sounded very ominous. However, I already knew where the legs of this news.

The head of VTB Andrei Kostin told the Russia 24 channel about Putin’s closed decree to write off debts of defense industry enterprises. In particular, Kostin said (quote from RIA Novosti):

"All is decided. At the end of last year, there was a meeting of the president with all interested participants. "The president’s decree has been adopted, though it is closed ... In general, the problem has been resolved - there is active participation of the budget and preferential restructuring by leading banks."

This issue excited our readers. A veiled is the veil of secrecy that supposedly surrounds this decision. But there is nothing secret except for specific names of enterprises and specific numbers in the decree. And voiced all for a long time.

I will remind readers of the September meeting of 2019 on the financial recovery of the defense industry enterprises in Izhevsk. It was there, in Izhevsk, that the president named several figures that perfectly illustrate the situation in the defense industry.

In particular, the approximate amount of the debt of the defense industry complex was announced: 2 trillion rubles. Moreover, the task was set to solve this problem as soon as possible. So for whom the presidential decree was unexpected? We seem to have to get used to the fact that the president’s instructions are being implemented.

In the fall, I was very interested in this topic. How could it happen that having large portfolio of orders, our defense industry enterprises not only do not bring profit, but are unprofitable? Why do they beg for money from the budget to reconstruct and raise salaries for employees? Agree, there is some inconsistency in this. There is work, money goes to the accounts, and ... there is no money.

The key bank for lending to the defense industry complex is Promsvyazbank. It is there that the loan portfolios of defense plants from other banks are transferred. And it was from there that the figure of the DIC debt was transferred. True, the president of Russia has taken the upper bar. In the original message, the figure was "blurred": 1,8-2 trillion. rubles.

Of this amount, approximately 700 million rubles are required to be restructured. These figures were immediately named by two knowledgeable people, Deputy Prime Minister Yuri Borisov and Igor Nuzhdin, one of the Promsvyazbank managers. Moreover, Borisov explained the situation to "ordinary" people, not "financial bigwigs":

“Enterprises formed over many years can only service debts, but they can never repay ...”

Simply put, the credit burden on enterprises is extreme. The profit from fulfilling public defense contracts and the production of other products is almost equal to debt service payments. If payments for services exceed profits, enterprises face default. Default, which the government cannot allow. Too important industry.

Look at the numbers. Today, the MIC has (according to the state register) 1319 enterprises. Of these, 140 are in the situation described above! A little more than 10% of defense enterprises are on the verge of bankruptcy! They are no longer given loans to them, without which it is impossible to develop production! But this, again according to official sources, 9% of the profit, but 23% of the debt!

But that is not all. There are 142 more companies that can still solicit loans from banks. Precisely beg. This is about 10%. These plants "work to zero." Revenues they give 17%, but they have a debt of 33% of the total debt of the defense industry!

Do you know how many defense industry enterprises feel good? Again, the numbers from Borisov: 583. Less than half of the total number of our defense industry. The existing debts are not large enough and it is not a problem to give them back to enterprises. 12% debt with 51% profit.

I understand that for the reader, general reasoning is not particularly interesting. As well as many special terms with which financiers cover their ways of making money on their own "sale". Give us, the inhabitants, specifics. I'm serving. Every year, the defense industry spends on debt servicing of 145 billion rubles! I repeat, not for paying debts, but for servicing.

In this state of the defense industry, President Putin’s mood becomes clear, and the gray hair that appeared in some of the meeting participants is also understandable. Putin demanded to solve the problem as soon as possible. Taking into account the interests of creditors, the state and the defense industry.

We pass to fantasies. To the closed part of the decree, about which nothing is yet known. But which follows from a review of the interests of all interested parties.

What exactly is not in the decree? Pay all debts to creditors at the expense of the budget and start from scratch. Why not? Have you seen a lender who voluntarily rejects free interest? No debt - no interest. So, given the interest of banks, the option disappears.

There is no option "from a sore head to a healthy one." I mean, subsidize enterprises at the expense of the Ministry of Finance. The same financiers are sitting in the Ministry of Finance and they will not allow substituting their own heads under the presidential "ax." Indeed, in this case they will ask already from them.

And what should be? First of all, it is necessary to force defense industry enterprises to sharply increase the output of civilian products as part of import substitution. We may well produce our own television and radio receivers, computers, washing machines and other household appliances.

Defense industry technologies allow you to produce competitive products. Today we produce only 21% of such products. Approximately 50% needed! By the way, I recently saw such products in one of the chain stores. 50-inch LCD TV for 21500 rubles. Production Zelenograd. People are buying.

Further. Develop state programs at the expense of defense industry enterprises. This is shipbuilding, aircraft manufacturing and others. For example, there is a sanitary development program aviation. So, aircraft for this program should be produced at Russian aircraft factories. There is a fishing development program fleet - ships and boats should be from our shipyards. There is a program for replacing the car fleet on the railway - the cars should be ours.



The third. Conduct an early restructuring of the industry. We must abandon the Soviet system of enterprise management in favor of a more modern one. It is necessary to change the financial and economic policies of defense industry enterprises as a whole. It is necessary to create a system of marketing, sales, operational activities in accordance with modern requirements.

There is a good example for this. Corporation "Rostec". (The truth and a bad example is also Rostec). Due to the restructuring already carried out, the corporation as a whole already provides 42% of the entire defense industry revenues! If it were not for the negative example of one of the units, UAC (United Aircraft Corporation), then the revenue would be even higher.

As you can see, in order to understand something “secret,” you don’t have to send James Bond to wild Russia at all. It is enough to carefully study open sources and draw simple conclusions. I repeat, all the numbers that you learned today are not secret. The conclusions that I voiced are also not all mine. These are the conclusions of experts, commissions, management of credit organizations, enterprises.

Another thing is important. Too many residents of our hinterland depend on solving issues related to defense industry enterprises. If for most large cities this is not particularly important, for small and medium-sized cities, defense industry plants are often city-forming. The real life of the population of such cities and townspeople depends on the stability and "wealth" of factories.
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  1. The leader of the Redskins 25 January 2020 11: 31 New
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    Probably the best optimization should be management, which allows the defense industry enterprises to become a plus. Always a plus! That people would have a constant and stable job / salary. We were confident in tomorrow. And the army was confident in a reliable rear!
    1. carstorm 11 25 January 2020 11: 46 New
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      this is precisely the point. the majority works as in the Union, completely not understanding modern realities. that the funniest thing for all these changes is that you don’t need to turn the land over or cut it down. it’s just enough to start doing it and everything will evolutionarily work for them too. management and management again.
      1. Andrei from Chelyabinsk 25 January 2020 12: 05 New
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        Quote: carstorm 11
        this is precisely the point. the majority works as in the Union, completely not understanding modern realities.

        Dmitry, I don’t even want to ask how many defense industry enterprises you worked in :)
        1. carstorm 11 25 January 2020 12: 12 New
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          Tell me about your specifics?))) That's just me as a manager, these nonsense is not to my liking. I now perfectly understand the reason for so many debts and understand why the state now needs to take these steps. but if everyone continues to work the old way, this will happen again in less than 10 years only in large sizes. I studied something similar in the separate divisions of RAO. everything was the same. a lot of loans and a lot of debts to them and they balance on this nightmare. it all ended naturally badly. it is a pyramid of pure water.
          1. Andrei from Chelyabinsk 25 January 2020 14: 19 New
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            Quote: carstorm 11
            Tell me about your specifics?)))

            I see that not one :)))
            Quote: carstorm 11
            that's just me as a manager, these nonsense is not good for me.

            To me, as director of economics and finance, too. Alas, these "nonsense" is our harsh reality.
            Quote: carstorm 11
            I now perfectly understand the reason for so many debts and understand why the state now needs to take these steps. but if everyone continues to work the old way, it will happen again in less than 10 years only in large sizes

            Once I myself thought the same. They say that the world is moving forward, into a "bright" capitalist future, while industry generously gets its face in all sorts of competition with problems and crises. A new formation of managers has grown up in the citizenry, capable of ensuring the survival of enterprises in spite of everything, and the defense industry has frozen in the 80s of the last century, and is quietly decomposing, absorbing federal money ...
            The reality turned out to be completely different, believe me.
            Quote: carstorm 11
            studied something like that in separate units of RAO.

            Understand. But in most cases, the defense industry has completely different problems.
            1. carstorm 11 25 January 2020 14: 48 New
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              I know. if you are of course about pricing and financing arrangements. there the devil really breaks and this is apparently a quiet nightmare. but it didn’t appear from scratch. I suppose that non-targeted expenses were so huge that I had to twist my arms. it’s just the issue of competitive civilian products. I'm more about that. without a civilian market, this will all remain in place. and that would roll into it and be effective without changing the economic model, everything will remain zilch. perhaps separation is necessary, and so that the divisions of companies specially created would deal with issues of such products. or enlargement to the likeness of lokhid and the creation of real corporations. where civilian production will cover defense costs. but there are private traders and they are much more effective than sovereign companies.
              1. vladcub 25 January 2020 15: 34 New
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                This is ideally true, but in practice the situation is more complicated. For the defense industry enterprises to develop, it is necessary to increase the output of civilian products, and for this, demand is needed. And here the most interesting part begins: the average Vanya is glad to buy high-quality goods, but the “toad” holds his throat and so Vanya buys a Chinese deshov. To compete with the Chinese, you need to lower the price, and then there will be no profit. There will be nothing to pay to Vasya so that Vasya can buy from Vanya. + Payment for energy and logistics.
                Some enterprises do not have such bunts - they have a sensible leader, and not a "momentary manager"
              2. Andrei from Chelyabinsk 26 January 2020 16: 03 New
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                Quote: carstorm 11
                But it didn’t appear from scratch. I suppose that non-targeted expenses were so huge that I had to twist my arms.

                In general, it is rather the opposite :). The thing is that starting somewhere from 1995 until 2008-10, the state specifically leaned on its defense industry and did not allocate enough money to equip the aircraft. As a result, many OPK factories fell into disrepair, as there are production capacities and people, but no orders, despite the fact that many industries simply are not suitable for conversion. Someone could survive due to civilian orders, when the enterprise did not work 100% for the military, but in those years it was frankly so-so with civilian production.
                In general, a significant part of enterprises somehow survived this period of timelessness, but withdrew from them with large debts and a credit load that they still cannot disentangle.
                As for pricing issues - yes, some enterprises managed to catch the firebird by the tail and agree on a very good price level, which provided them with sufficient profit. But by and large, today the system is designed to offset only a fraction of the cost of manufacturing military products, which significantly reduces statutory profits and does not provide sources for development. And the financing system (special accounts) is generally bullshit, which gives the state and the defense industry enterprises absolutely nothing but unnecessary difficulties, work and a headache.
                Quote: carstorm 11
                without a civilian market, this will all remain in place. and that would roll in there and be effective without changing the economic model, everything will remain zilch

                And the model now is not much different.
        2. Ilya-spb 25 January 2020 12: 41 New
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          I once read that at the time of the night of the aforementioned EBN, defense enterprises were massively privatized by the Americans. Which simply stopped them. I would not be surprised if thousands of enterprises were destroyed.

          A similar situation cannot be allowed. I support the decision of the president.
          1. Andrei from Chelyabinsk 25 January 2020 14: 20 New
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            Quote: Ilya-spb
            I once read that at the time of the night of the aforementioned EBN, defense enterprises were massively privatized by the Americans. Which simply stopped them.

            Nope. Fantasy. However, we coped with the shutdown of enterprises no worse than the Americans
        3. antivirus 25 January 2020 15: 59 New
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          do not contact him (approving) - apparently the drill officer wrote-
          about mobs (several species and Gcal) did not hear
          Who prevented Mikhelson from the military-industrial complex to attract 110% ?? - probably Chemezov and Rogozin-- in different offshore accounts with them? no to \ from banks?
          watered the confrontation from the beginning of the 1990s continues - "effective" against "everything on our own, as I can, without Davos"
          which camp SPKorolev and Kurchatov include ?? - there really is justice
      2. sabotage 26 January 2020 09: 27 New
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        Quote: carstorm 11
        this is precisely the point. the majority works as in the Union, completely not understanding modern realities. that the funniest thing for all these changes is that you don’t need to turn the land over or cut it down. it’s just enough to start doing it and everything will evolutionarily work for them too. management and management again.

        They all know, they all know how, but since the money comes from the budget, a significant part of the money should go to the money distributors, and since all these thefts will be hung on the directors, he needs to warm his hand there so that he has something to sit on . And those who are lower, realizing that everyone is hopelessly tearing the enterprises to pieces.

        So it turns out that one commission did not have time to figure out the tricks of the past director and leave the company, as the next commission arrives and parses the tricks of the new director.
    2. smart ass 25 January 2020 12: 12 New
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      To do this, you just need to produce goods demanded by the market.
      1. knn54 25 January 2020 12: 59 New
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        Under the Union, almost all industrial enterprises produced components for military factories. There was such an organization, the State Planning Commission, which balanced the prices of civilian and military products. Because production of these components had no relation to the economy.
        Therefore, after the collapse of the USSR, the production of components for the defense industry became unprofitable, because there was no profit. Now, military factories, except for assembly, must themselves produce these components with all the consequences ...
        This is one of the points. But secrecy allows you to hide / mask corruption and economic crimes. For example, the parent enterprises did not give money to the cooperative performers, but did what they wanted with them.
        And the last one. 10 years ago a GREAT military program was adopted. The Government did not have money.
        A number of banks were recommended, and with a predatory%. I do not believe in chance.
      2. SHURUM -BURUM 25 January 2020 13: 18 New
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        ... defense industry technology allows you to produce competitive products.
        Wow!!! But the enterprises will not be able to, because the managing superstructure of defense industry enterprises with big salaries has multiplied so much that it will eat up all the scanty profits that a handful of the remaining skilled workers and engineers will provide. Why scanty, yes because the military-industrial complex technologies designed for piece production are very expensive. And civilian products should be high-series in order to provide the necessary amount of profit at a low price if they are not forced to be forced into by any Decree, but sold to the public. Forced sales of the products of some enterprises will not give anything to others, because if there is no money, then they are not available both in the military department and in other (civilian) departments of the country. GosKarman something general and empty.
        1. Ua3qhp 26 January 2020 09: 37 New
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          Moreover, a huge number of services involved in the production of military products for civilian production is not required, but they must be maintained, and this increases the cost of civilian products.
        2. at84432384 26 January 2020 16: 53 New
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          As for the emptiness of GosKarman, you believed Medvedev. In vain. Last year: a surplus of three trillion, not spent from the budget, a trillion. Total 4 trillion "extra" money. The year before last, the picture is about the same. The entire budget is 20 with a small trillion. There is considerable money (I’m not even talking about all kinds of funds). There is no desire to spend them for the good of the country, there it is!
    3. svp67 25 January 2020 13: 00 New
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      Quote: Leader of the Redskins
      Probably the best optimization should be management, which allows the defense industry enterprises to become a plus. Always a plus!

      Yes, good managers have always been and are, and they will be worth its weight in gold.
      But one more thing to consider: The defense industry enterprises who went through and who still goes through a very expensive stage of modernization of the means of production, they did all this not for their money, which simply was not there at that moment, but at the expense of loans. So the resulting debt is understandable, as is the cancellation of these debts now.
    4. lucul 25 January 2020 15: 20 New
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      Probably the best optimization should be management, which allows the defense industry enterprises to become a plus.

      The best optimization would be to simply remove bank loans - and finance directly, through a state bank - WITHOUT LOAN INTEREST.
      The second is to remove unnecessary intermediaries between the enterprise and suppliers. It is no secret that company management can purchase products through a long chain of intermediary companies that are registered with their son / daughter / brother / aunt and others. As a result of such chains, a plant, for example, can purchase 1 kg of nails at a price of $ 300. Salvation - in the "digitalization" of production - when all the financial operations will be immediately sent online to Moscow.
      Ie without OBHSS just a way to nowhere.
      This is just so, offhand ....
      1. Was mammoth 26 January 2020 10: 56 New
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        Quote: lucul
        The best optimization would be to simply remove bank loans - and finance directly, through a state bank - WITHOUT LOAN INTEREST.

        Or as with retirees. Freeze debts indefinitely. wink
        1. dSK
          dSK 26 January 2020 13: 36 New
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          The rating of US President Donald Trump has grown thanks to the approval by American citizens of his economic policy, according to a survey conducted by ABC News and the Washington Post.
          "Industrialists - industrialists" defeat "usurers - money changers." good
    5. Atilla 29 January 2020 13: 57 New
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      such articles will appear regularly here with such detailed reviews. And then what? Putin’s built system is not able to solve either this or any other similar problem. Here, yes, we are always ready to increase the number of billionaires and the welfare of those acting on it.
  2. Kleber 25 January 2020 11: 33 New
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    All the same, the first thing the defense industry enterprises need to be exempt from taxation. But without government orders, of course, nowhere.
  3. 75 Sergey 25 January 2020 11: 38 New
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    Trillions are written off at the expense of the people, but they didn’t put anyone in prison for this and didn’t even take it, i.e. people pay for everything, whether he wants it or not!
  4. karabass 25 January 2020 11: 43 New
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    Dear author, contradicts himself! In the beginning, he advocates secrecy and lack of popular noses in the secrets of the authorities. Then he himself cites data that the people are not supposed to know, in his opinion
    I would have written right away the GLORY of the CPSU! PUTIN Hurray!
    simple and clear, study student
    1. at84432384 26 January 2020 16: 59 New
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      Yes, he himself does not know anything. The same "expert" as Gorbachev was, the same ridiculous proposals. The solution to the problem lies in a completely different plane. And this is not about money.
  5. Andrei from Chelyabinsk 25 January 2020 12: 04 New
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    Nevertheless, in order to write about defense industry enterprises, you need to know something about defense industry enterprises - no offense :)
    1. lucul 25 January 2020 15: 36 New
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      Nevertheless, in order to write about defense industry enterprises, you need to know something about defense industry enterprises - no offense :)

      And what is there to know?
      Well, let's say we need R&D for a new tank / plane / helicopter. What enterprise can conduct research itself? No - only development work. I read about the Tu-160, only during its design, 120 discoveries were made in various fields of science.
      All this was and WORKED, since the days of Stalin - and now the enterprises have abandoned alone, without a scientific base - they say, develop it yourself. And why should the enterprise be developed - if it does not have its own research institute, and most importantly there is no research finance like the state has.
      There, in the West, the Zionists have created an excellent scientific and engineering team (really smart people), and they are thrown from project to project, they create a breakthrough in one place, then in another. And so in a circle all the research. Financing - absolutely UNLIMITED - as much as necessary - as much money will be printed to them.
      So compare the conditions.
  6. God save the king 25 January 2020 12: 05 New
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    State corporations, by definition, are capable of nothing but stealing the budget. So it was, it is, and it always will be.
    The only chance to at least somehow raise the industry is to carry out privatization between the citizens of the country (with the restriction of sales abroad).
    Just like they did with the military procurement, it should be the same with the defense industry.
    1. Alexga 25 January 2020 12: 26 New
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      Just like they did with the military procurement, it should be the same with the defense industry.

      Remember the stories with cardboard soles at the boots of the Russian Imperial Army. Do not think that history can happen again.
      1. God save the king 25 January 2020 12: 32 New
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        Remember the stories with cardboard soles at the boots of the Russian Imperial Army.
        and I also remember how state enterprises supplied defective ammunition to the army.
        For violations, you need to ask the distributors of state orders, controlling and verifying.
        By whom and how is produced - not so important.
        1. Alexga 25 January 2020 12: 34 New
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          For this, there is a military acceptance and reclamation work on products. And the control there is such that the state control has not dreamed of.
          1. God save the king 25 January 2020 12: 38 New
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            So you answered your question with cardboard boots.
            In the Crimean War, it was not the private traders who were to blame for the fact that government officials could not ensure timely state orders, the private traders were not to blame for the gendarmerie not controlling financial flows for the corruption component, and the private traders were not to blame for the military accepting the defective goods.
    2. Cyrus 25 January 2020 12: 28 New
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      What is the hunt for a free dough to get?
      1. God save the king 25 January 2020 12: 34 New
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        Do you think that due to the abundance of dough, state-owned companies are gaining trillions of debts and live off “poor and miserable” private taxpayers?
    3. Andrei from Chelyabinsk 25 January 2020 14: 21 New
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      Quote: God save the King
      State corporations, by definition, are capable of nothing but stealing the budget. So it was, it is, and it always will be.

      See "Rostec", the corporation directly refutes your words.
      1. Liam 25 January 2020 16: 13 New
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        Quote: Andrey from Chelyabinsk
        See Rostec

        We're watching.
        THE DEBTS OF URALVAGONZAVOD FOUND THE ROSTEKH TO SELL THE ASSETS. CORPORATION PREPARED FOR NEW MANY-BILLION LOANS
        06.08.2019


        Economics and business

        Rostec asks 350 billion rubles from the budget to pay off UAC debts

        Rostec "will redeem the debt" Tractor Plants "to VEB at a discount
        Debt with a nominal value of 84 billion rubles will be transferred for 5,4 billion rubles

        16 DECEMBER 2019
        Rostec restructures BelZAN debts for 800 million rubles

        November 28 2019
        Rostec will give Yurmash 300 million rubles to pay off debts

        Understand and forgive: why the Russian government forgave Rostec debts for Crimean TPPs
        28 September 2019

        Rostec converts AvtoVAZ debt into shares


        In Yekaterinburg, began to bankrupt the "daughter" of "Rostec"
        Debts exceeded 750 million rubles.

        Yekaterinburg Radio Equipment Plant, the main owner of which is Rostec (more than 50% of the shares), was declared bankrupt
        .
        1. Liam 25 January 2020 16: 25 New
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          6 months ago
          The head of Rostec, Sergei Chemezov, asked Putin for 300 billion rubles
          The head of the Rostec corporation, Sergei Chemezov, met with President Vladimir Putin, reported on the results of the state corporation and asked for another 300 billion rubles for its capitalization. Transcript of the meeting published on the Kremlin website
          .
          1. Engineer 25 January 2020 20: 15 New
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            Who can explain why then Rostec has the highest credit rating? I ask without irony.
            https://www.raexpert.ru/database/companies/rostec
            1. Liam 25 January 2020 20: 32 New
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              You would also have the highest credit rating if the state would compensate you for all losses and guarantee any of your expenses. In addition, if I’m not mistaken, under Russian law, Rostec cannot be declared bankrupt in any case.
              1. Engineer 25 January 2020 20: 38 New
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                You would also have the highest credit rating if the state would compensate you for all losses and guarantee any of your expenses.

                Partly agree. Nevertheless, regarding the losses ... They are not according to the documentation. Profit and profitability are very decent. I don’t want to be the devil’s lawyer, but it would be interesting to understand
                https://raex-a.ru/annual_reports/reports/2017_rosteh.pdf
                https://zachestnyibiznes.ru/company/ul/1077799030847_7704274402_GOSUDARSTVENNAYa-KORPORACIYa-ROSTEH/balance
                1. Liam 25 January 2020 21: 19 New
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                  The Civil Code differs both from joint-stock companies with a predominant state participation, and from state-owned unitary enterprises: in particular, the Civil Code is not subject to the provisions on disclosure of information required by public OJSCs, as well as the effect of the bankruptcy law; unlike FSUE GK, they were removed from the control of a number of state bodies.
                  State corporations are not subject to the provisions of federal law No. 127-FZ On Insolvency (Bankruptcy)
                  Control over the activities of the Civil Code is carried out by the Government of the Russian Federation on the basis of the annual presentation by the corporation of an annual report, an audit report on the accounting and financial (accounting) statements, as well as the conclusion of the audit committee on the results of the audit of financial (accounting) statements and other documents of the corporation. Any other federal bodies of state power, bodies of state power of the constituent entities of the Russian Federation, bodies of local self-government shall not interfere in the activities of corporations. GK is not required to publish these statements


                  So the true state of affairs is a mystery with seven seals.
        2. Andrei from Chelyabinsk 26 January 2020 15: 39 New
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          Quote: Liam
          We're watching.
          THE DEBTS OF URALVAGONZAVOD FOUND ROSTECH TO SELL THE ASSETS.

          We looked. And then they tensed up and remembered that Uralvagonzavod, so private of itself, was transferred to Rostec in a pre-bankrupt state in 2016 by decree of the president :)))) With huge debts. With which Rostec now flops, but without it, the Uralvagonzavod would have gone bankrupt 3 years ago
          1. Liam 26 January 2020 16: 14 New
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            Quote: Andrey from Chelyabinsk
            tensed up - and remembered that Uralvagonzavod, such a whole of itself private

            Yeah. All

            On August 28, 2007, Russian President Vladimir Putin signed a decree on the transformation of the Federal State Unitary Enterprise Uralvagonzavod into OAO NPK Uralvagonzavod. According to the press service of the president, the decision was made in order to "preserve and develop the scientific and production potential in creating promising complexes of armored and artillery weapons, rationalize defense production and increase the competitiveness of manufactured products." The government is tasked to complete the creation of the corporation in a year
  7. gridasov 25 January 2020 12: 07 New
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    The Americans again defeated Russia by tying it into an arms race that led to a systemic crisis.
  8. BAI
    BAI 25 January 2020 12: 16 New
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    make defense industry enterprises sharply increase the output of civilian products as part of import substitution. We may well produce our own television and radio receivers, computers, washing machines and other “household appliances”.

    This has already passed. It didn’t lead to anything good. Nevertheless, the author should not “fantasize” something. An instruction to increase the output of civilian products has long been given by Putin, and openly. Everyone was warned about the planned reduction in the defense order.
  9. Thrifty 25 January 2020 12: 17 New
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    Alexander, the biggest mistake is to entrust the financing of the military-industrial complex to businessmen! They promise only one percent in words, in reality, a commission for interest, interest multiplied by interest, even with minimal delay in payments! Therefore, the defense industry enterprises are head over heels in debt, for REAL interest payments eat up profits! The MO needs to create its own bank, personally controlled by the Supreme, the Minister of Defense, and the chief of the General Staff and the army’s financial services! And that’s it! And the interest will be minimal (or there will be none at all), and checking the movement of funds will go very easily. ..
    1. Nyrobsky 25 January 2020 12: 40 New
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      Quote: Thrifty
      Alexander, the biggest mistake is to entrust the financing of the military-industrial complex to businessmen! They promise only one percent in words, in reality, a commission for interest, interest multiplied by interest, even with minimal delay in payments! Therefore, the defense industry enterprises are head over heels in debt, for REAL interest payments eat up profits!
      Is not a fact. Well, the company took a loan for the modernization and expansion of production in the hope of a long-term state defense order, but the customer, represented by the Ministry of Defense, suddenly decided that some product was currently not relevant and cut the order. The capacities are idle, the estimated profit turns into natural losses, there is nothing to give credit to, interest is growing, hard workers are being reduced. In this situation, the bank that issued the loan, as it were, has nothing to do with it.
      Quote: Thrifty
      The MO needs to create its own bank, personally controlled by the Supreme, the Minister of Defense, and the chief of the General Staff and the army’s financial services! And that’s it! And the interest will be minimal (or there will be none at all), and checking the movement of funds will go very easily. ..
      In the Soviet Union there was generally one bank which is Sberbank (well, maybe even a Vneshtorgbank). As for me, the calculations between the state and the enterprise should be carried out through the Ministry of Finance and the account of the enterprise, specifically for the order or upon the fact of its execution, bypassing all kinds of laying in the form of banks and funds, which are also not weakly fed by pumping money, taking their percentage . Direct financing under the order from the treasury and real support of state control over the development of allocated funds will be sufficient. A separate bank of the Ministry of Defense of the Russian Federation is a great temptation for corrupt officials in uniform, so this is probably superfluous.
  10. Alexga 25 January 2020 12: 25 New
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    The third. Conduct an early restructuring of the industry. We must abandon the Soviet system of enterprise management in favor of a more modern one. It is necessary to change the financial, and indeed the economic as a whole, policy of defense industry enterprises. It is necessary to create a system of marketing, sales, operational activities in accordance with modern requirements.

    It has already been in history. This was called conversion. How it all ended is also known. The defense industry enterprises are very specific enterprises, as it was possible to put them on lending from banks. And the bank will take and begin the bankruptcy proceedings of this enterprise. Will we close the plants? There is defense industry and there is a state budget that finances these enterprises. Otherwise, the state will buy defense industry products at sky-high prices. Remember the joke of the 60s: "The better the fur, the more expensive it. The more expensive it is, the better for us and the industrial finance plan."
    1. Golovan Jack 25 January 2020 12: 31 New
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      Quote: AlexGa
      This was called conversion.

      This was not called conversion.

      Quote: AlexGa
      The defense industry enterprises are very specific enterprises, as it was possible to put them on lending from banks. And the bank will take and begin the bankruptcy proceedings of this enterprise. Will we close the plants?

      No, we won’t. Kalashnikov, by the way, was led through bankruptcy. The plant is working. What is the problem? wink

      Quote: AlexGa
      There is defense industry and there is a state budget that finances these enterprises. Otherwise, the state will buy defense products at sky-high prices.

      On the contrary. As soon as the defense industry begins to be guaranteed to be funded, this is where you will get the "product at exorbitant prices." We have now, my friend, capitalism, after all.

      The joke is good. Correct yes
      1. Altona 25 January 2020 13: 04 New
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        Quote: Golovan Jack
        As soon as the defense industry starts guaranteed financing

        -------------------------
        Roman, by the way, contrary to the common bike, there was no guaranteed funding in the USSR. Everything was funded according to the plan. And by the way, the military-industrial complex was quite capable of producing conversion products, such as high-class household radio equipment such as Arktur, IL vehicles.
        1. Golovan Jack 25 January 2020 13: 11 New
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          Quote: Altona
          Roman, by the way ...

          Eugene, by the way - it's not a bit about "what happened in the USSR." It's about what will happen if, as the comrade suggests Alexga

          Quote: AlexGa
          There is defense industry and there is a state budget that finances these enterprises

          I said that in this case it will be. Do you have any objections? let's wink
          1. Altona 25 January 2020 13: 21 New
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            Quote: Golovan Jack
            Eugene, by the way - it's not a bit about "what happened in the USSR."

            ---------------------
            I just did a remark. As for how it should be, you need to make an audit of production capacities and look at the subject of dual technologies. Of course, you need to look at the load factor of the equipment, the availability of specialists, the need of the market. In general, this is a pure economy so that the enterprise feeds itself. What was the strength of Soviet industry, it knew how to solve tasks, but somehow it does not work to accustom it to self-sufficiency and other goodies of the market. Well, maybe this is not their fault, it’s about credit policy.
  11. Yang yangov 25 January 2020 12: 34 New
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    from the whole article .. understood only that ..
    "Probably everyone came across a balabol who" served where no one ever ".."
    and there’s also some “VTB Head Andrei Kotin” which is in the world of Kostin).
    - and so in the morning the article is hard and not digestible)
  12. The collective farm 25 January 2020 12: 51 New
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    Staver, where's your "friend" romance ..?
    you used to sort of loosening Russia together ..? lol
    You say hello to him and a box of stew from Mikhan (I don’t know the address, but I can through Israel ..))
  13. Kuroneko 25 January 2020 12: 53 New
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    Defense industry technologies allow you to produce competitive products. Today we produce only 21% of such products. Approximately 50% needed! By the way, I recently saw such products in one of the chain stores. 50-inch LCD TV for 21500 rubles. Production Zelenograd. People are buying.

    But is it really our products, and not some kind of “screwdriver assembly” of finished sets from China, as, for example, with Eldorado’s personal “brand” - Elenberg (in fact, a Chinese complete set, assembled in the Kaliningrad region, and only then delivered to Russia - an attempt brand under the European brand)?
    1. AU Ivanov. 25 January 2020 13: 15 New
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      Now there is no "our" production in any of the countries. The international division of labor is called.
      1. Kuroneko 25 January 2020 13: 17 New
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        Quote: AU Ivanov.
        Now there is no "our" production in any of the countries.

        Really? And the tractors of our Chelyabinsk Tractor Plant are also "foreign", you want to say?
        1. AU Ivanov. 25 January 2020 13: 38 New
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          Some of the components are probably imported.
          1. Kuroneko 25 January 2020 14: 30 New
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            No, we make tractors purely on our own (I will not say for new models, of course, but all the running and time-tested ones are definitely ours). This is not a Superjet to you, where it’s domestic - big deal.
        2. Free wind 25 January 2020 14: 43 New
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          Well, yes, foreign, there is an English diesel engine on the DET-400. Although last year ChTZ produced only 50-60 tractors, they don’t want to improve or update their products, this is almost the case with us, so the Chinese have climbed into our market and, moreover, they adore the United States without advertising.
    2. region58 26 January 2020 16: 24 New
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      Quote: Kuroneko
      some "screwdriver assembly" of ready-made kits from China

      Exactly. There is no localization level.
      As far as I know, matrices of such a diagonal are not produced in Russia, however, as well as processors for receiving and processing TV signals (I will be glad if I made a mistake). Moreover, the Chinese seem to have crushed such giants as Samsung and LG.
      The L8-1 line at the A3 Samsung factory in Asan is already being dismantled and is being prepared for shipment to China. Instead of the unprofitable line L8-1, Samsung plans to expand the production of QD-OLED panels. The second line at the Samsung factory in Asan still produces LCD panels for premium segment devices, but Samsung is rumored to be looking for a buyer for it as well. This indicates that the Korean manufacturer intends to abandon the production of LCD panels as soon as possible. LG Display also sells its LCD production lines. It is known that the P8 plant is planned to be converted for the release of OLED. During his speech at CES 2020, the head of LG Display, Jong Ho Young, said the company plans to stop producing LCDs by the end of this year.

      Although it is not entirely clear: "quantum dots" are a type of LC.
      QLED (from the English quantum dot, "quantum dot") is the marketing name for Samsung LCD dot LCD manufacturing technology. A similar technology from LG Electronics is called NanoCell, from Sony - Triluminos, from Hisense - ULED.
  14. Bastinda 25 January 2020 12: 53 New
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    We, it seems, should already get used to the fact that the president’s instructions are being implemented.

    Your habits are strange .... I’m used to believing that nothing good from what the president says will be fulfilled. Import substitution? May decrees? The end of the war in Syria?
    1. mag nit 25 January 2020 13: 36 New
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      Not May decrees, but May tales.
  15. rocket757 25 January 2020 13: 03 New
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    Everything is complicated and costly, BUT!
    The military-industrial complex is vital for us! The military-industrial complex must develop, it is vital! Enterprises heavily indebted to develop, but simply can’t work. Only the state can solve this problem and will solve it, because it needs it!
    Everything is logical, understandable, EVERYONE DOS THIS when necessary!
    So it is, no one else learned.
    This is not good, not bad, so necessary at the moment.
  16. maden.usmanow 25 January 2020 13: 11 New
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    Here is the flip side of the "cheap" Russian weapons.
  17. midshipman 25 January 2020 13: 21 New
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    The defense industry enterprises are waiting for a large order. It is necessary to restore the aircraft industry, the development of small airports and regional aviation control systems. Everything was the same. When we had to relinquish our powers due to the liquidation of ministries, there were more than 2000 civilian airports in the Russian Federation (1989). Now there are 258 of them. It is necessary to produce landing systems, navigation, on-board equipment. .
    1. smart ass 25 January 2020 13: 41 New
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      What for it is necessary, we have the power of Siberia and the flow to Turkey
    2. Sancho_SP 25 January 2020 13: 53 New
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      Who needs something?

      Personally, are you ready to sell an apartment, lay a kidney and lung in a pawnshop and invest in opening a rural airport with a flow of two flights a year? Why then do you want this from the state?
  18. Sancho_SP 25 January 2020 13: 51 New
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    It must be understood that state-owned enterprises are borrowed from the state, and then not repaid.

    For good, it is necessary to raise product prices in order to increase profitability and repay debts. But then it will be necessary to inflate budget expenditures.

    And so - we are simply being deceived on the scale of spending.
  19. parusnik 25 January 2020 18: 05 New
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    Develop state programs at the expense of defense industry enterprises. This is shipbuilding, aircraft manufacturing and others. For example, there is a program for the development of air ambulance. So, aircraft for this program should be produced at Russian aircraft factories. There is a program for the development of the fishing fleet - ships and boats should be from our shipyards. There is a program for replacing the car fleet on the railway - the cars should be ours.
    Almost the same thing was said in the mid-20s of the 20th century that you need to load your production, and not buy steam locomotives in Sweden for gold ...
  20. Petrol cutter 25 January 2020 18: 56 New
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    Chic article! I put fiercely seventy-two pluses.
    Finally, something about the case.
    “A lot of the inhabitants of our hinterland depend on solving issues related to defense industry enterprises. If this is not particularly important for most large cities, defense industry factories are often city-forming for small and medium-sized cities. The real life of the population of such cities the townspeople. "
    Let me kiss you! ..

    "There is a good example for this. Rostec Corporation. (True and a bad example is also Rostec)."
    Our plant seems to be transferred to him in December '19. So far, it is true that I did not receive any papers with a seal on the re-signing of the employment contract. We’ll wait and see what the Rostec company will appreciate.
    My personal provincial opinion: the President is PERSONALLY supervised by the president PERSONALLY to control the work and support of enterprises involved in the defense industry complex. This is the specificity of our country. Otherwise, good luck not to see. With that mess that is happening right now in production ... As one of our old installers said yesterday: "... well, this is some kind of wrecking!"
    1. Ua3qhp 26 January 2020 09: 44 New
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      Nothing, there will be more papers, but less money.
  21. Tomich3 25 January 2020 19: 06 New
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    "The head of VTB, Andrei Kostin, told the Russia 24 television channel about Putin’s closed decree to write off the debts of defense industry enterprises."
    The socialite and mother of the illegitimate son of the head of VTB, Oksana Lavrentyev, at one time received as a gift Aston Martin DB9, Mercedes Benz S 500 L 4-MATIC, Mercedes Benz SL500, a 195-meter apartment in the Kuntsevo residential complex and a mansion on Rublevka. Cosmos-Gold jewelry house and cosmetic brand Egomania began to offer Lavrentieva contracts, her photo sessions were published by ELLE, L`OFFICIEL, InStyle, Collezioni, Menu Magazine, HELLO, OK, Grazia and Domovoy magazines. As a result, she became the owner of Rusmoda, whose 250 employees receive salaries from an unknown source.
    No comment, as they say.
  22. TANKISTONE 25 January 2020 20: 19 New
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    “Enterprises formed over many years can only service debts, but they can never repay ...”


  23. olimpiada15 25 January 2020 22: 10 New
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    Most likely the following occurs. The company has orders that it must fulfill and it works. And finance for orders does not come fully, and also with a delay. But production cannot be stopped and it cannot work without money, therefore the enterprise is forced to take loans from banks at interest. And how to return these percentages, if the price of the products is set right up to the mark, delays begin, interest is wound up, production becomes unprofitable. The defense industry does not have a maneuver as with the release of consumer goods; replacing it with cheap components is fraught with consequences. The company is heading for bankruptcy. The reasons are commonplace. There are forces that will gladly stop the Russian defense industry in order to weaken the country. There are forces in the banking sector that capitalize on the created problems - this is their income. There are other reasons. Sometimes the state sends military products to countries that do not pay for the goods received and these debts are large. For those involved in financial transactions in this chain, it is not difficult to get rid of problems by transferring problems to an adjacent link; they manipulate documents. As a result, the extreme is an enterprise that is obliged to work without money. This is a general scheme for the whole country, which works against the whole country, but is a source of extra-income for a small group of people, near-power people, influential people who create the conditions for adoption of the laws they need, because this is the source of their income. The figure is 2 trillion. The unpaid products of the military-industrial complex flashed recently in the press. Order must be put in the flow of public finances, so that it does not turn out that the state itself is stealing.
    1. Essex62 27 January 2020 13: 02 New
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      The ability to get rich will inevitably lead to such situations. Why not steal if permitted by law.
  24. Nikolai Korovin 26 January 2020 00: 23 New
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    The production of civilian products cannot be a priority for the military-industrial complex by definition. Passed, passed the "conversion" around 1990. It ended in massive non-payment of salaries. The debts of the military-industrial complex - just someone is wise with the pricing of military equipment. The military-industrial complex should not have a dime! From hail and weight, sometimes moans come: "Again the guns instead of oil!"
    Calm down gentlemen. Oils in bulk. True, it should be noted that sometimes with a significant admixture of palm. But these are questions to specific manufacturers. There will be no guns - they will take away the butter.

    As for the development of the military-industrial complex of dual use, an enterprise having such technologies should open a subsidiary operating under its patronage, but to a large extent at its own commercial risk and peril. The enterprise of the military-industrial complex should advise this company and receive moderate royalties, but in no case should it be done by itself. These should be completely different people with a moderate tolerance.
    1. SHURUM -BURUM 26 January 2020 09: 06 New
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      ... And as for the development of a dual-use military-industrial complex, an enterprise having such technologies should open a “daughter” operating under its patronage, but to a large extent at its own commercial risk and peril. The enterprise of the military-industrial complex should advise this company and receive moderate royalties, but in no case should it be done by itself. It must be completely different people.
      Absolutely right! Small businesses, remember, were like that. And there was a minimal number of managers, because the managers themselves understood that with cost accounting with such a herd of observers, verifiers, counselors and supervisors, it was impossible to survive. From among technical specialists and workers, the best were accepted there, respectively, salaries were higher and due to this, the small enterprise steadily existed without loans. Each, I judge on my own (because in the 90s I worked in such a way), and everyone felt like members of a large friendly family.
      1. SHURUM -BURUM 26 January 2020 09: 21 New
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        everyone felt like a member of a big friendly family (there was no way to correct the text)
  25. Llur 26 January 2020 02: 24 New
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    "... abandon the Soviet management system in favor of a more modern ..." Modern management systems bankrupted hundreds and thousands of enterprises, millions did not fit into the market. For progress, it is worth abandoning the flawed capitalist system in favor of the progressive socialist system - nationalizing Gazprom, Sber, Rusal and other strategic enterprises and companies. To come up with something with the Central Bank - once it is impossible to nationalize, then something can be replaced - for example, by a state cryptocurrency that is not controlled by the Central Bank. Tax revenues and all profits from state-owned enterprises should be invested in their own economy, and not in the western one.
  26. oracul 26 January 2020 08: 28 New
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    The problem of financing the defense industry did not arise today, but since the transition to a market economy. The Moscow Region planned expenditures based on its preferences, and today energy prices continue to rise, which lead to an increase in materials and components. Inflation as it was. It fell today, but the MO took into account the forecast of the Ministry of Finance and the Central Bank, and they promised it lower than it actually turned out. In order not to disrupt state orders, enterprises took commercial loans, and they were oh, how expensive. And you need to return. The Moscow Region and the Ministry of Finance are shrinking in allocating funds, the Central Bank is diligently bankrupting banks, including those lending to the defense industry complex, and then everything is simple - the requirement is either to repay the loan ahead of schedule or the bankruptcy of defense enterprises. Often I recall the efforts of Alf-Bank in this direction. In my opinion, this is not accidental, but strategically thought-out approaches of the so-called NATO member-partners, whose blue dream is to destroy our defense industry. Strange things with privatization come up here, when foreigners become their shareholders, which is prohibited. And unlike us, their representatives thoroughly control the enterprises, get access to many documents. Here, civilian products will help, but not save. It’s just time to finally understand that other hybrid forms of war against Russia are many-sided and unexpected.
  27. Boris55 26 January 2020 09: 12 New
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    Can defense companies be profitable? They can, if they stop working for defense. Do you remember the joke from Putin about the dirk and watch?

    The attitude of the members of the forum towards writing off defense spending, like a litmus test, highlights our attitude towards our homeland: those who would have it and those who would not have it. There is no third. I - for what my country would be and this my desire can be provided only by a strong army with a strong military-industrial complex.
  28. Ua3qhp 26 January 2020 09: 48 New
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    Quote: olimpiada15
    Most likely the following occurs. The company has orders that it must fulfill and it works. And finance for orders does not come fully, and also with a delay. But production cannot be stopped and it cannot work without money, therefore the enterprise is forced to take loans from banks at interest. And how to return these percentages, if the price of the products is set right up to the mark, delays begin, interest is wound up, production becomes unprofitable.

    This is exactly what happens, as well as the inability to plan work due to instability of orders. Sometimes it seems that the top managers do not know what the production cycle and the time to complete it. They probably think, like in a computer game, they gave money, products immediately appeared, but it doesn’t.
  29. Ros 56 26 January 2020 11: 17 New
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    The article is a plus, but one unpleasant moment is forgotten, it is necessary to drive out from there, from the enterprises of the military-industrial complex, these stupid topmenagers from there, who, besides their pockets, see no more horseradish. This is a task for the new government and quite serious.
  30. kotvov 26 January 2020 13: 08 New
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    We, it seems, should already get used to the fact that the president’s instructions are being implemented. ,,
    Yah? I didn’t notice something.
  31. Private-K 26 January 2020 13: 51 New
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    Quote: Andrey from Chelyabinsk
    The reality turned out to be completely different, believe me.

    What are the main reasons for the negative, in your opinion?
    1. Bank arbitrariness?
    2. Are enterprises driven into the position of an eternal debtor?
    3. The ability to steal budget and company money and escape to London?
    4. Problems with the management staff? (Lack of the necessary education? Formal education does not lead to real knowledge and I understand? The low moral image is “to steal and run away” as the final logical principle? Negative selection up? ... ets)
    5. Does the engineering staff not match?
    6. Grassroots staff do not want (can not) work properly?
    7. Do you need fundamental tax relief?
    ets ....
  32. Radikal 26 January 2020 15: 22 New
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    This issue excited our readers. A veiled is the veil of secrecy that supposedly surrounds this decision. But there is nothing secret except for specific names of enterprises and specific numbers in the decree. And voiced all for a long time.
    Did the author see the text of the document? The specific numbers and names of enterprises are currently the "Open Secret", at least for the West. The decree’s closeness can only be explained by one - it probably spells out how creditor banks will be compensated for writing off debts. Either in the form of full monetary compensation from the National Wealth Fund, or by providing extended preferences of a very different nature. Probably, in their opinion, this information is contraindicated to citizens. For very specific reasons .... sad
  33. Radikal 26 January 2020 15: 24 New
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    Quote: Ros 56
    The article is a plus, but one unpleasant moment is forgotten, it is necessary to drive out from there, from the enterprises of the military-industrial complex, these stupid topmenagers from there, who, besides their pockets, see no more horseradish. This is a task for the new government and quite serious.

    Funny ... lol
  34. wooja 26 January 2020 16: 04 New
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    A muddy article ..., the author’s desire to load the military-industrial complex with civilian production is very dumb, in the USSR it did not produce results, it will not do it now ... moreover, the criticized and often fairly "Soviet branch system" was a forced alternative to the market management methods ...., the NEP was curtailed due to total corruption and theft ... and the country's leadership prepared for war ...., for real war and built socialism in one country, and did not integrate into the world economy. .. The solution to the problems of the defense industry lies in the political field, and finance and the economy only follows political decisions, and the modern Kremlin leadership is not able to solve these problems .....
  35. dgonni 26 January 2020 17: 23 New
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    The author of course expresses interesting thoughts. Type factories of the defense industry complex can produce receivers (on which element base and why are they needed if they are not clear on any phone) computers? Where on what and on what element base is not clear. There is an elbrus which costs like 3 cars from any city link and with poor parameters. TVs? Even an example of Zelenogorsk is given. The author does not see the courses that in Russia all household appliances are produced on a contract basis. That bish in the same Zelenogorsk put a line for the assembly of liquid crystal panels and a plastic stamping line. Well, the manual assembly of domestic essno. Pick up the raw materials for the TV cases and there is no TV as such, our raw materials do not roll. Pick up electronics and components for the matrices and generally there is nothing.
    The defense industry enterprises are in debt for one reason. Not a single manager will extend production if there are no prospects and a clear understanding of when and how much the enterprise will produce. On the same ships full atas. 2 buildings are being laid with the prospect of manufacturing another 4-5 for 5 years. In the production process, changes are made that essentially slows down production and increases the price. Then oops. And instead of a seemingly already worked out project, one needs to lay the same type but completely different. Plus operational gaps in the laying and production periods. And you need to pay a salary because they scatter and then you can’t collect it. And taxes and energy also need to be paid.
    So the problems of OPK enterprises begin even at the planning level
  36. iouris 26 January 2020 21: 14 New
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    The defense industry plants cannot have debts. And underfunding is possible.
  37. qaz
    qaz 27 January 2020 08: 57 New
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    How can the defense industry make a profit, huh? If weapons are produced on the domestic market, i.e. for your own army, then there can be no profit in principle!