According to the head of Rosteh Sergey Chemezov, this year the state defense order will be reduced by 10%, but this is not critical for the military-industrial complex. “I think the state defense order will be reduced by 10%”, — he said in an interview with The Wall Street Journal, answering the question of whether the reduction this year is more than 5%.
Chemezov also confirmed that the reduction of expenses on the state defense order has already begun. He explained that cutting the defense budget is understandable given the fall in energy prices, which constitute the main source of state revenue.
In relation to the programmes that can be frozen, Chemezov said that the President and the Prime Minister has already decided that ongoing projects should be completed. “We probably will not release anything new. This is likely to be suspended”, — said the head of Rostec.
In early March the Deputy head of the Ministry of defence Tatyana Shvetsova has confirmed that the budget office will be reduced by 5%. She said that cuts will not affect arms, and social spending, and will be sequestered logistics and construction.
“When the budget sequester on national defense leadership of the country decided that the state armaments program is not subject to sequestration in General”, — said Shvetsova.