Russia to allocate an unprecedented $703 billion for new weapon program

Russia to allocate an unprecedented $703 billion for new weapon program

2011-03-19 00:35:55 GMT+7 (ICT)

MOSCOW, RUSSIA (BNO NEWS) -- Russia on Friday announced that it will allocate an unprecedented $703 billion (20 trillion rubles) for a new state armament program, Itar-Tass news agency reported.

Russian President Dmitry Medvedev announced the new state arms procurement program at the Defense Ministry. The Russian leader added that the share of modern weapons should reach at least 70 percent by 2020.

"The major efficiency parameter for the military and industrial sector remains its capacity to fulfill the state armament program. The program implementation should be linked closely with a new federal targeted program for the development of the military and industrial sector," Medvedev said.

Russia will buy 36 strategic ballistic missiles, two strategic missile submarines and 20 strategic cruise missiles this year with the unprecedented budget, as announced by Defense Minister Anatoly Serdyukov.

Serdyukov added that the $703 billion budget will also be used for purchasing 5 spacecraft, 25 warplanes, 109 helicopters, 21 missile defense systems, 3 multirole nuclear powered submarines and a surface warship.

"The prices on the military products should be transparent and clear," added President Medvedev. "A state order should guarantee a proper profit-making level for the military enterprises in order to develop and introduce new technologies."

On February 24, Russia unveiled the new state armament program. Russia's Defense Ministry submitted the arms procurement spending plan for 2011-2020 to the government in December.

As part of the modernization of the armed forces, almost a quarter of the total budget will go on Russia's long under-funded navy. The European country will buy two Mistral assault ships from France, while two more of the ships will be built under license in Russia.

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