The state defense order is the prerogative of the president
The Ministry of Defense decided to reorganize Oboronservis OJSC. It did not meet expectations, and now the Defense Ministry of the Russian Federation intends to return to the troops the functions of the current repair of armored vehicles, a number of others. What are the planned transformations? How will the situation with the implementation of the state defense order after the encroachment of the Kiev authorities on the cooperative ties of the defense industry of Ukraine and Russia? These and other questions in an interview with the Military Industrial Courier were answered by the Deputy Minister of Defense of the Russian Federation, Yuri Borisov.
- Yury Ivanovich, in connection with which the Ministry of Defense made a decision on the reorganization of Oboronservis OJSC?
- I emphasize: it was not born spontaneously. For one and a half years, our specialized services have been analyzing the feasibility of preserving certain services within the framework of Oboronservis, the ratio of their price and quality. The report of the Minister of Defense of the Russian Federation on the June 3 conference call on this issue is essentially the quintessence of the work done.
Let me remind you some facts and figures. As the minister noted, today the total number of personnel of Oboronservis OJSC is 130 thousand, which is two times more than the military personnel previously employed to perform the same functions. For 2013 year, the growth of budget expenditures for these purposes increased by 49 billion rubles.
A large number of intermediaries appeared in Oboronservis. Thus, in the sphere of transport services in 2012, from five to eight intermediaries were involved, in the sphere of coal supply - from four to six. There is the lack of transparency in the activities of outsourcing companies and the corruption component. Filed more than 25 criminal cases. The total external and internal accounts payable of Oboronservis enterprises amount to tens of billions of rubles, including debts to counterparties - 97,6 billion, wage arrears - 1,4 billion rubles. This state of affairs dictated the need for reorganization.
- How many enterprises in the end are they planning to retain at the Ministry of Defense after the completion of the restructuring of Oboronservis?
- There are about 300 enterprises in JSC Oboronservis in total. We are now talking only about industrial. From 131 about 50 we will transfer from the structures of the Ministry of Defense to the industry. Around 20 most likely just cease to exist as legal entities. Count yourself how much will remain in the Defense Ministry of the Russian Federation.
Today there is an understanding that, in general, about half of all enterprises need to be reorganized. We are not going to take long to reform, it will take two or three years.
I will add to the above said that last year a meeting of the government was held, at which the chairman ordered the actual transfer of enterprises from the Ministry of Defense to industry in 2014. But there are a number of problems. In fact, we entrusted industry with the management of these enterprises at the end of 2013. The formation of boards of directors, etc., was given over at first. Everything went smoothly at first. The industry was ready to take everything, but a deeper acquaintance with enterprises revealed that their financial and economic situation is unsustainable, there are many debts. And the inhibition began.
But we are not going to deviate from the fundamental thesis: the army must deal primarily with combat training, and the industry - the manufacture and repair of weapons and military equipment. Let me remind you, there is military repair (within 10 hours), and there is a major one, with modernization, which is exactly the prerogative of industry. The watershed is precisely the military repair.
The logic is as follows. Our dream is to ideally switch to the maintenance of equipment as part of its life cycle. So that from the stage of R & D to recycling, we had a host - an industry that would look at the state of technology, and we were only engaged in its operation. For this we need military repair. Therefore, we are now restoring repair agencies in the army.
Should be addressed and such a question. Part of the repair agencies that were in Oboronservis (three of its holdings), mainly specialized in the repair of equipment, which has long been discontinued, but still in the Armed Forces. There's a big problem with spare parts, setting up production. The industry does not want to take on it. How to be?
We believe we must look for compromises. There was a high danger in general to lose this functional repair of equipment, out of production. Therefore, we have weighed all the pros and cons, and we are taking this step quite deliberately. It may seem from a certain departure from our previous position. But actually it is not. I repeat: I am absolutely convinced that the army should not be engaged in production and industry issues. But to convert assets that the industry does not take today for one reason or another, to orient them to repair decommissioned equipment, to make certain islands competence by districts is the right approach. For example, we have an idea to create seven armored and seven artillery factories, tying them to military districts precisely in terms of troop repair.
This may be some deviation from the plans that we declared a year ago, saying that we give everything. But at the same time a balanced, rational decision that takes into account the interests of the parties to the maximum. As they say, measure seven times, cut once.
- The accumulated debts of Oboronservis - what will happen to them?
- We'll have to restructure. In any case, the Ministry of Defense is not going to take them on. In Oboronservis, there are independent economic entities from which it is necessary to ask. In the extreme case, you will have to repay debts due to the restructuring and optimization of Oboronservis assets and their sale through the Federal Property Management Agency.
- What will happen to enterprises that as a result of these reforms will be outside the sphere of influence of the Ministry of Defense?
- This is a measure of responsibility of the Ministry of Industry and Trade. Of the three holdings, we apparently will have one. All three we just do not need. OJSC Aviaremont virtually all goes into industry. OAO Spetsremont is also leaving. Thus, we will have Remvooruzhenie OJSC as a management company.
Arsenals also remain under the jurisdiction of the Ministry of Defense. We are now building a network of new arsenals, and we all the more need continuity. As new arsenals are commissioned, we will close the old ones, and transfer people to new jobs. Of course, this is an additional burden on the protection of objects. But, I think, this is in a state way more expedient than waving a saber.
In the end, four subholdings will remain: Oboronstroy OJSC, Remvooruzhenie OJSC, Voentorg OJSC, Voentelecom OJSC.
JSC Oboronstroy will be engaged in housing and utilities and construction.
Remvooruzhenie OJSC - repair and restoration of weapons and military equipment.
JSC Voentorg will expand the network of services, deal with issues of the hotel industry.
Voentelecom OJSC is a specialized operator for the provision of communication services to units and formations of the RF Armed Forces, military camps. Provides broadband Internet access, provides modern telecommunications services to remote garrisons. And it will expand them, which is also connected with the Crimea.
There is an idea after optimization to transform some organizations from joint-stock to federal budget institutions. That is, to make them absolutely state-owned and take them to the troops for military repair. Although this option is still in the elaboration.
Outsourcing will remain the mainstream. As already noted, the military should be maximally exempted from non-core duties. But it is impossible to bring the situation to the point of absurdity. We deliberately refuse cleaning services, believing that the soldier should not be cleaning up the barracks for the soldier, not Aunt Masha, but the warrior himself. The young man, even of military age, must be able to clean, wash after himself. After all, the army is not an institution of noble maidens.
I'm not talking about the fact that the process of self-service has become quite comfortable and easy. We bought vacuum cleaners, washing machines for troops, and equipped barracks with shower cabins. Today, the question arises in general complete abandonment of the bath-laundry service, except perhaps the washing of large things.
But this has more to do with the functioning of the field camps. And here just the business can tell the word. We want to build relationships with private entrepreneurs as follows. Do a field camp, deploy it in an optimal place and deal with all maintenance issues: laundry, food, sewage, cleaning. And the Ministry of Defense guarantees you reimbursement of financial expenses. Moreover, we are ready to conclude agreements for five to ten years, which will ensure the stability of interaction on a favorable basis. It seems to me that there is a healthy grain.
What will it all give us? We believe that 60 – 70 billions of rubles in debt is a kind of foam, formed as a result of non-professional activities, including numerous intermediaries. For us, this is very serious money that we could direct to the development of the Armed Forces, the purchase of new weapons and military equipment, especially with regard to the import substitution of components and assemblies from Ukraine.
- By the way, how serious is the rupture of cooperative ties with Ukraine for the defense industry of Russia and what could be the consequences for the implementation of the state defense order?
- I receive weekly information about disruptions in supplies. We paid for the products and provided them in accordance with the contracts, the manufacturer is ready to ship, but at customs it is stopped by order of the elected president (formerly acting head of state). Such regulations are aimed at ending the cooperation between Ukraine and the Russian Federation in the defense industry.
All this may be the subject of proceedings in the relevant international judicial instances, although we do not want to bring this up. I know that our Ukrainian partners do not want this, but they are forced to submit to the dictatorship of Kiev.
- In what defense sector of Russia can such a situation strike the hardest?
- According to the new AME models, import dependence is rather low. It is practically nonexistent. And the one that exists is associated with the repair and maintenance of equipment and weapons already in operation, primarily on navy and aviation. And these are mostly engines. It is, in particular, about the products of Motor Sich JSC.
- And as for the intercontinental ballistic missiles that were delivered from Yuzhmash, will we get out too?
- Here and spinning is not necessary. For example, on the "Governor" we have already decided all the questions. So we will not experience any dependence. As for its design supervision and maintenance, firstly, the contract with Yuzhmash will not be terminated and we will not initiate it. Secondly, if for some reason they stop authoring support, we have something to replace it with.
But the money, and very decent, our partners will lose. Although there is a more complex scheme. Yuzhmash as a manufacturing plant and Yuzhnoye Design Bureau as a designer carry out Voevoda escort and extend the duration of the rocket on combat duty under contracts with Russian enterprises. That is, the Russian Defense Ministry paid its Ukrainian colleagues, and they paid Russian enterprises that worked with them in close cooperation. Now the ties are broken, and the work of the Russian cooperation is paid for by us directly.
Today we observe with great regret what is happening in Ukraine, and do not give a reason for reducing the level of interaction. But we are forced to introduce new elements into the practice of our relations simply by the fact, for example, excluding advances. Although we hope with hope that our colleagues will come to their senses, since all this does not fit into the framework of ordinary common sense.
- There is no danger that the Dnipropetrovsk people in such a difficult situation, and on the orders of Kiev, will merge the secrets of production of Voivode and other missile systems?
- "Voevoda" - 70-s development PH. The technologies for which it was created, it remains to exist a maximum of 2023 year. So all the secrets are known. And it is unlikely that anyone is needed, because in 30 years, technology has leaped forward, no one needs to use them today.
In short, we are not afraid of this. Moreover, in all promising models of ballistic missiles that are developed and produced by Russian enterprises, Ukrainian cooperation is practically excluded. But the losses incurred by the Ukrainian partners will be huge. Besides, Motor Sich simply will have no one to supply its products, 30 thousands of workers at the enterprise will remain without means of subsistence.
- In accordance with the modernization program of the Tu-160, the supply of K-32 engines was to be arranged. Repeatedly flashed messages that she might be thwarted. What is the situation now?
- We managed to solve this problem. Until 2020, ten Tu-160 are guaranteed to be upgraded with engine replacement.
- You have already mentioned the GOZ, which our defense industry complex should perform in any case. At the St. Petersburg International Economic Forum (SPIEF-2014), Russian Finance Minister Anton Siluanov said it was necessary to raise the retirement age and reduce defense spending. According to him, these unpopular measures are necessary to free up money in the state treasury for the development of infrastructure. Will all of this hit the state defense order?
- I hear such statements and sentences almost every year. The state defense order is the implementation of the State Armaments Program in the three-year period. The approval level of the HPV is the president of the Russian Federation. And no one, notice, neither the chairman of the government, nor the minister of finance, nor anyone else has the right to make changes to the state armaments program for any parameters: type, quantity, cost characteristics. This is the prerogative of the president of the Russian Federation.
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