Revival of the defense industry: a decisive moment is coming for the domestic defense industry

Last week, 375 billion rubles of debt were announced to be written off to the military-industrial complex and the same amount will be restructured for a 3-year period at XNUMX%.

It is worth noting that this decision has been brewing for a long time. The thing is that domestic defense enterprises actually fell into debt bondage to bankers. Almost all of the industry’s profits went to debt servicing, instead of investing in new developments and upgrading existing ones. As a result, there was a threat of disruption in the implementation of the state defense order.

The accumulated over many years, 2 trillion debts became a necessary measure for the defense industry. The thing is that the main customer is the Ministry of Defense, which is interested in purchasing products at the lowest possible prices. It was for this purpose that the department lobbied the restrictions on the maximum margin, which put most plants in a difficult position. So, for the purchase of new equipment or the implementation of ongoing repairs, enterprises had to take loans from banks. In addition, the eternal problem of the cash gap has not gone away.

But will the current debt relief be the ultimate solution? Indeed, the restrictions on the maximum margin on products for the Ministry of Defense will not go anywhere.

The salvation for the domestic defense industry will be the production of civilian products, the share of which from the total production is planned to be increased to 50% by 2030. The latter is sold on the open market, which means that the margin is dictated by the market, not by officials.

It is worth noting that the decision to write off debts was made very timely. After all, now the decisive moment is coming for the industry. Of the 6 trillion rubles envisaged in national projects for the purchase of machinery and equipment, more than 3 trillion, for which foreign manufacturers are already actively fighting, may fall on the products of the Russian defense industry.

  • Photos used: Federal State Autonomous Institution “Patriot Culture and Exhibition Center”
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  1. xilia72 Offline xilia72
    xilia72 (xantos) 10 March 2020 21: 58
    The salvation for the domestic defense industry will be the production of civilian products.

    The conversion of the military-industrial complex was already under Gorbachev. Why do companies that make weapons produce pans?
    1. Nick Offline Nick
      Nick (Nikolai) 10 March 2020 22: 53
      Quote: xilia72
      The conversion of the military-industrial complex was already under Gorbachev. Why do companies that make weapons produce pans?

      Why pots? Uralvagonzavod, in addition to tanks, produces cars. Any sensible leader will diversify his activities, and not rely only on state defense orders. Moreover, you can’t accumulate a lot of fat on the defense industry, as it turns out. Here the state needs to help enterprises, both with money and demand forecasting, for the development of civilian production lines, taking into account the intellectual, technological, resource base of the defense enterprise, and, possibly, with orders for civilian products.
    2. A.Lex Offline A.Lex
      A.Lex 12 March 2020 14: 08
      Xanthos, what did you want under capitalism? How can an enterprise survive? It is in socialism that all expenses and incomes fall to the state.
      1. xilia72 Offline xilia72
        xilia72 (xantos) 12 March 2020 17: 23
        The defense industry seems to be state or half there. The state must take care in any case, vital interest is present.
        1. A.Lex Offline A.Lex
          A.Lex 13 March 2020 11: 28
          That's it, that half ... negative
          Our state has withdrawn itself from many things in itself ... This ideology is "ENRICH !!!" will bring to the zugunder ...
  2. steelmaker Offline steelmaker
    steelmaker 10 March 2020 22: 02
    This is what I support 200% !! If our government AFRICA has written off its debts to other states as well, then "God himself ordered it!"
  3. Arkharov Offline Arkharov
    Arkharov (Grigory Arkharov) 11 March 2020 06: 31
    And in the USSR, especially at its sad end, they paid special attention to the financing of the defense industry complex, quite rightly sending huge amounts of money to compete and confront unfriendly, aggressive states, day in and day out dreaming of attacking our peace-loving superpower and absolutely necessary and effective help to our friendly progressive states .....
  4. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 11 March 2020 09: 07
    Here's something unclear: Are banks writing off debts? Or does the budget compensate 2 trillion banks? Or are there any other debts?

    Or bang, and Putin simply said: everything, do not have to .... .... ???

    And to which banks and how much specifically ???

    About this not a word ....
  5. Dedok Offline Dedok
    Dedok (Sergei) 12 March 2020 11: 10
    And is the "revival of the defense industry" just debt cancellation? If so, there will be even more commercial loans, and the "exhaust" will be given to the elite.
    Why these articles?
    Convince the electorate that "everything is fine, beautiful marquise"?
    "Oboronka" in the USSR relied on many enterprises that manufactured components / small things for it, where are these enterprises now ???