Tag Archives: GPV 2011-2020

The Air Forces and the GPV

General-Lieutenant Sadofyev

Last week, General-Lieutenant Igor Sadofyev – Chief of Aviation, Deputy CINC of the Air Forces (VVS) for Aviation – spoke to the press about his service’s ambitious plans for procurement under State Armaments Program (GPV), 2011-2020.

General-Lieutenant Sadofyev told RIA Novosti the VVS will receive 1,500 new, and 400 modernized aircraft by 2020.  The Chief of Aviation said the State Defense Order (GOZ or ГОЗ) for 2011 includes acquisition of Su-27SM, Su-30M2, Su-34, Su-35S, and Yak-130 aircraft for the VVS, as well as Ka-52, Mi-28N, Mi-8AMTSh (MTV-5-1), Ka-226, Ansat-U helicopters for Army Aviation.  But he provided no specific procurement numbers for next year.

Su-34 (photo: RIA Novosti / Igor Rumyantsev)

For Long-Range Aviation (LRA or ДА), he said the VVS will modernize existing Tu-160, Tu-95MS, Tu-22M3, and Il-78M aircraft.  The goal is to update 80 percent of this inventory in what he calls the medium-term future – defined by him as 2020.  What he has in mind here is service life extension and the replacement of some electronics and other systems.

For Military-Transport Aviation (VTA or ВТА), Sadofyev says the VVS will modernize its existing aircraft, and purchase more than 50 percent new ones.  He doesn’t break it down by particular types of transports.

For Frontal Aviation, some existing aircraft will be modernized, and over that medium-term future (2020) more than half the order-of-battle will be replaced with new aircraft, and 14 percent of the inventory will be ‘perspektivnyy’ (перспективный) aircraft.  One supposes that means PAK FA.  If that 14 percent is 70 PAK FAs, that would put Frontal Aviation at about 500 aircraft total.

Army Aviation, according to Sadofyev, will get 70 percent new aircraft by 2020, and 100 percent sometime afterward.  He said the VVS will begin getting the Ка-52 / Alligator next year.  And he made a point of noting that Army Aviation will remain within the VVS, despite rumors it might return to the Ground Troops.

He said serial deliveries of the Yak-130 trainer will begin next year to replace 1970s-vintage L-39 jets.  Flight instructors and technical personnel will learn the Yak-130 at Lipetsk before using it to train young pilots at Krasnodar.

Sadofyev also told RIA Novosti the number of VVS day-night, all-weather aircraft will increase 4.5 times, and this will lower aircraft losses by a factor of 10-12.  According to him, the share of precision weapons in the VVS will increase 18 times, taking it to 70 percent of the inventory by 2020.  So less than 4 percent of current air-delivered munitions qualify as precision weapons.  UAVs will be increased 6 times, taking them to 30 percent of the aircraft inventory.  So they are about 5 percent at present.  Sadofyev adds that money will go to providing a common reconnaissance-information environment for the VVS.

Defense Ministry spokesman Colonel Vladimir Drik also talked about VVS procurement last week.  He said the VVS got new and modernized aircraft this year, including Su-27SM and Su-25SM, and Mi-24PM and Ansat-U helicopters.  But he had to admit only the Ansat-U is new, and he didn’t provide numbers.

There was a major garble over the Su-27SM.  RIA Novosti quoted Drik as saying the VVS “received four squadrons of modernized Su-27SM” this year.  In fact, the transfer of the final 4 of 48 Su-27SM happened in late November 2009.

Drik said Russia’s air defenses will be 100 percent new by 2020, with the VVS operating the S-400, S-500, and Pantsir-S.  Once again, no one seems to want to talk about what’s going on with SAM production.

Igor Korotchenko’s take on VVS procurement from October looks pretty on-target in light of this latest press.  He said the priorities were precision weapons, automated C2, aircraft, and air defense systems.  And, at that time, he put the acquisition numbers at 500 new aircraft, 1,000 helicopters, and 200 air defense systems.

All in all, an extremely ambitious plan.  Fulfilling it will demand complete and timely funding, and even then it will be a challenge for Russia’s aviation industry.  Also, Sergey Ivanov says the GPV has gone to the government today, so maybe we’ll learn how VVS requirements fare.  VVS will be a priority, but we’ll have to see how high.

The Navy and State Armaments Program 2011-2020

One could make a study of nothing but forecasts about the Russian Navy’s future.  They vary pretty widely.  But Trud’s military correspondent, Mikhail Lukanin, published an interesting and realistic one on 24 November.

Lukanin claims the details of future Navy procurement plans have been revealed to Trud.  This assumes the Navy (or someone) actually knows what they are at this point . . . a debatable proposition.  At any rate, what he presents sounds pretty reasonable and achievable, whether or not it has any official sanction.

Lukanin breaks the news that the largest part of Russia’s military expenditures and arms procurement over the next 10 years will be for the Navy.  He cites Ruslan Pukhov:

“Of the 19 trillion rubles allocated in the budget for the purchase of new armaments until 2020, the fleet’s share comes to 5 trillion, that is significantly more than any other service of the Armed Forces.”

If this turns out to be true, it is a significant amount, 500 billion rubles (more than $16 billion) per annum over the coming decade, if the Defense Ministry gets its promised amount, and the Navy gets its.  Lukanin says the Navy, which got only four new ships in the last 20 years, will be the military’s priority for the very first time.  He says, according to ‘plans,’ the Navy will receive 36 submarines and 40 surface combatants.

Lukanin explains all this with a quote from former First Deputy CINC of the Navy, Fleet Admiral Ivan Kapitanets:

“Sharply reinforced attention to the fleet is explained by the fact that Russia’s military-political leadership, judging by everything, has come to the conclusion that the state’s naval power is more important than ground forces.”

He points to the rapid U.S. defeat of a strong Yugoslav Army in 1999 using only air power, much of which was carrier-launched.

But Lukanin also cites Anatoliy Tsyganok, who believes a continental power like Russia can never undervalue its land troops.

With all this said, Lukanin addresses what will come out of Russia’s new ‘naval concept’ in which the U.S. is no longer the enemy, and ships aren’t built for a single purpose like killing carriers.  He lists:

  • 8 SSBNs.
  • 22 SSNs and diesel-electric submarines (yes, this would be 30, not 36, as it said at the top, and at least two of the SSBNs are complete, well almost).
  • 12 frigates like the new Admiral Gorshkov frigate (proyekt 22350).
  • 20 Steregushchiy corvettes (proyekt 20380).
  • 10 amphibious landing ships, 4 Mistral type ships and 6 Ivan Gren-class LSTs (proyekt 11711).

Citing unnamed ‘analysts,’ Lukanin posits four missions that would be fulfilled exclusively by Russia’s naval forces:

  • Securing Russia’s oil and gas resources, facilities, and transport on the world’s oceans.
  • Protecting maritime trade links from piracy.
  • Providing a naval counterweight to China’s population and military manpower on Russia’s Far East borders.  Lukanin’s analysts contend the Chinese Navy is relatively weak, and the “Pacific Fleet even in its current, far from perfect condition is superior to the Chinese in combat potential by several times” (was the same thing said about the Japanese before Tsushima?).
  • Showing the flag in the Middle East, Southeast Asia, and Latin America to interest countries in closer ties and arms contracts with Russia.

Lastly, Lukanin looks at how the importance and roles of Russia’s individual fleets will change.  He calls this the turn to the Pacific.  He says the Pacific Fleet will get most of the Navy’s large surface ships, and half of its nuclear submarines.  It will get the first Mistral, and has the mission of deterring both China and Japan.  The Northern Fleet will retain its importance as home to many SSBNs, and because of Russia’s oil and gas claims in the Arctic.  But its surface force will decline.  The Black Sea Fleet will be a focus of renewal; it is looking at a Mistral, 12 new corvettes, and 6 new submarines.  Its focus is Georgia, and South Stream.  The Baltic Fleet will be reduced, losing ships to the Black Sea Fleet, though it will get 2-3 new corvettes.

So what it comes down to is, can the Navy get everything Lukanin listed?  ‘Back of the envelope’ math says yes.  What he listed might cost $30 billion, maybe $40 at the extreme.  There is also stuff the Navy’s discussed but he didn’t mention (carriers, refurbishing CGNs, restarting the WIG program, new naval aircraft).

What are the impediments to carrying off such a program?  Firstly, actually getting the promised amount of financing.  GPVs are easy to launch, but don’t get finished before they’re superceded by another one.  In short, over a ten-year period, it’s unlikely the Navy will get the planned amount.  Even if it does, how much will the corruption ‘tax’ eat away at the amount?  Short answer – a lot. 

Beyond financing, there’s another complex issue – can Russia’s naval industry produce this list in the coming decade?  How much productive capacity is available, what condition is the infrastructure in?  Is there sufficient skilled labor for what shipyards pay and where they’re located?  Recent experience says things aren’t good on this score.  Some yards are still pretty full with foreign orders, Sevmash seems full with Russian orders, and other yards are in poor shape.  In short, it seems it is taking longer than planned to get new ships and submarines in the water.

Perhaps the present author is just not an optimist.  Moscow can afford the ‘plan’ Lukanin describes, but actually completing it will be difficult for a lot of reasons.

Medvedev Calls for Unified Aerospace Defense

Yesterday President Dmitriy Medvedev delivered the annual Federal Assembly address.  It was rather brief, uninspiring, and contained relatively little on the military, except his call for work on a unified aerospace (air-space) defense (VKO or ВКО).  This could be a death knell for independent Space Troops.  He also repeated his warning that an agreement on missile defense is needed, or another round of the arms race will ensue.

But let’s look from the beginning . . . Medvedev suggested the army’s modernization might help jumpstart the scientific and technical modernization of the economy.  He said the 20 trillion rubles for the State Program of Armaments will be doubly effective if they give Russia dual-use technologies that can help modernize production processes and develop both fundamental and applied research.  And Medvedev again mentioned creation of a Russian DARPA:

“Therefore we are creating a special structure which will research and develop breakthrough technologies for the defense sector.  There are such structures, you know, in other countries.  We are expecting many of them will find application in everyday life.”

There seems to be a huge disconnect between Medvedev’s almost offhand comments here and what military men expect out of that 20 trillion.  One doubts many in the armed forces see any of this funding going to R&D.  They see it going almost entirely toward procurement of existing weapons and equipment woefully lacking in today’s military inventory.  Perhaps it’s Medvedev’s way of selling (as if he needs to) these expenditures to the average citizen.  

At any rate, Medvedev then gets down to brief comments on the armed forces:

“The development of our state and society is impossible without effective support of national security and defense.  We have taken a course for a deep modernization of the Armed Forces, for conducting systemic, meaningful transformations in them.  The combat component of the Armed Forces, the combat readiness system, command and control, and material-technical support of troops have already been updated.  Our combat exercises have again become regular and, what’s of no small importance, large-scale.  Four military districts have been formed instead of six.  In the framework of the State Program of Armaments to 2020, troops are being outfitted with modern equipment.”

“What tasks still have to be resolved?  First.  In the next year, particular attention needs to be given to strengthening the country’s aerospace defense, to unify existing air and missile defense systems, missile attack warning, and space monitoring.  They should act under the unitary command and control of a strategic command.”

“Second.  Today’s Russia, it goes without saying, also needs a modern army and fleet, compact and mobile troops manned with high-class specialists and the newest weapons.  This requires both serious resources (I just stated the volumes of these resources), and new, sometimes complex, decisions.  At the same time, it is necessary to fulfill all obligations to people who chose army service for themselves, first and foremost to resolve the housing question within the planned time.”

“Third.  The army should free itself from ancillary tasks and noncore functions.  These functions need to be transferred to civilian organizations, to concentrate attention, most of all, on real combat training.  A young man only goes to the army for one year, and the program of training in military affairs is not becoming easier.  It is essential that every young man assimilate the program in full measure.”

Medvedev goes on to describe his discussions about European missile defense with NATO in Lisbon.  He repeats his warning that, if an agreement on missile defense isn’t reached and a full-fledged joint cooperation mechanism isn’t created over the next decade, another round of the arms race will begin:

“And we will be forced to make a decision on the deployment of new strike means.  It is perfectly obvious that this would be a very grave scenario.”

What Will GPV 2011-2020 Buy?

Russian military procurement policy is an obvious focus of what you read here, and there’s lots to write about on this score lately – the GPV, defense budget, OPK modernization and innovation, etc.  It’s not possible to capture it all at once.  Here’s a start, and hopefully it will lead to broader insights later.

Writing for his latest project – the Center for the Analysis of the World Arms Trade (TsAMTO or ЦАМТО), Igor Korotchenko addressed what the new GPV might buy.  His article was picked up by VPK.name, and then a somewhat truncated version ran in Nezavisimoye voyennoye obozreniye.  He uses the 22 trillion ruble figure rather than the 19 trillion for the armed forces specifically.  Not that it matters since it’s a wag at best anyway.

In his first broad swipe, Korotchenko forecasts that Russia will buy 500 new aircraft, 1,000 helicopters, and 200 air defense systems among other arms and equipment over the 2011-2020 period.  He admits, even with a fairly generous procurement budget [if approved and fully disbursed every year], it will be impossible to buy everything each service and branch will need after 20 years of very small-scale procurement.

And this is exactly, of course, the point that Popovkin’s deputy, General-Lieutenant Oleg Frolov was making when he argued for 36 trillion . . . .

So, they can’t have everything and will have to prioritize.  Korotchenko gives it a whack, maybe not satisfactory, but it’s a start:

  • Strategic nuclear forces;
  • Precision-guided weapons;
  • Automated command and control systems (ASU);
  • Aircraft;
  • Air and missile defense (PVO / PRO).

Korotchenko doesn’t talk specifics about his first two priorities. On the third, he calls for a unitary military C2 system to enable Russian netcentric warfare.  On aircraft, he somewhat surprisingly emphasizes transport aircraft to move Russia’s million-man army between strategic axes as needed.  And Korotchenko lists PVO / PRO without further commentary.

He supports efforts to overcome Russia’s lag in UAVs, ships, individual protective equipment and soldier systems, and armored vehicles through cooperation with Israel, France, Germany, and Italy.

Then Korotchenko turns back to aircraft, saying they are the thing that will indicate what kind of armed forces Russia will have in 2020.  Based on what’s been said publicly, he counts:

  • An-124 Ruslan — 20
  • An-70 — 50
  • Il-476 — 50
  • Il-112B — ??
  • Su-35S — 48  
  • Su-27SM — 12
  • Su-30MK2 — 4
  • PAK FA — 60
  • Su-34 — 32, possibly 60-80 more
  • Su-25UBM / Su-25TM — 10, possibly 20 more
  • MiG-35 — 30
  • MiG-29SMT / MiG-29UB — 20-30
  • MiG-29K / MiG-29KUB –26, possibly 22 more
  • Yak-130UBS — 120
  • New airborne early warning aircraft — 2-3
  • Be-200PS — 8-10

In all, he summarizes, about 500-600 aircraft by 2020.

Korotchenko doesn’t talk money, so we’ll have to think about what this would cost.  In terms of what’s covered, he’s only talked only about RVSN and Air Forces’ requirements.  You can be sure the Ground Troops, Navy, VDV, and Space Troops have their own lists.  Maybe Korotchenko will address them.

Beyond what they say they need, there are two issues.  Can they buy it all, or at least how much of it?  And, second, can the OPK produce it?  Korotchenko doesn’t get us too far into any of this.

Popovkin on GPV Financing, Inter Alia

Perhaps lobbying for more money for armaments pays off . . . at least a little.

At Farnborough today, First Deputy Defense Minister Popovkin told journalists financing for GPV 2011-2020 will be almost doubled.

Popovkin said:

 “We’re talking about increasing the amount.”

“With the Finance Ministry we’re now deciding the issue of the amount and the schedule of year-by-year financing taking into account of the state’s economic possibilities.”

“Now we’re talking about 20 trillion [rubles].”

Recall early June’s comments to the effect that the proposed 13 trillion would cover only one-third of the Defense Ministry’s needs.

Popovkin also said [again] that a state program for developing the OPK needs to be adopted at the same time as the new GPV.  He said:

“Both documents will be confirmed by the President this year.”

But he didn’t offer anything on the amount of financing for an OPK development program, but said ‘negotiations’ with the Finance Ministry are being conducted.

On the fifth generation fighter, Popovkin said the Defense Ministry plans to receive its first experimental model in 2013.  He also said:

“By 2015 the Defense Ministry plans to buy ten aircraft from the first assembly run which will go to operational forces.  And from 2016 we plan to implement a series purchase of fifth generation fighters.”

Air Forces CINC General-Colonel Zelin recently told the press more than 60 will be bought starting in 2015-2016.

More to follow . . .

General Staff Chief Makarov’s Press Conference

Sound bites from General Staff Chief Nikolay Makarov’s press conference today dribbled out one at a time, as usual.

Makarov told reporters President Medvedev signed a decree establishing four operational-strategic commands (OSK) to replace the existing military districts on 6 July, but the text hasn’t been published.  Makarov also said arrangements putting the OSKs in place would be complete on 1 December.

Makarov talked more about the new “unified system of material-technical support (MTO)” also apparently covered in Medvedev’s decree.

Rear Services Chief, Deputy Defense Minister, General-Colonel Dmitriy Bulgakov, as expected, will head the unified MTO system, and new First Deputy Defense Minister Vladimir Popovkin will supervise the new state armaments program, 2011-2020, as well as coordination with military industries. 

Makarov stressed uniting transportation and supply functions under Bulgakov:

“We had a disconnect when all transport for supplies of material means to the troops was at the disposal of the Deputy Defense Minister for Rear Services, but he didn’t have anything he needed to move with this transport.  The other Deputy Defense Minister, on the other hand, had armaments, but no means for transporting them to the troops.”

“This is very important because now the management of transportation and armaments is concentrated in the hands of one man.  The correctness of the decision was confirmed by the recently completed ‘Vostok-2010’ operational-strategic exercise in the Far East.”

 “Now one official serving as a Deputy Defense Minister heads a unified system of material-technical support which has united rear services and armaments.  He alone personally answer for both the transport of supplies of material-technical means, and for these means themselves.  Now one man answers for the state of affairs with armaments and for their supply to the troops, who will also now be responsible for that.”

The way Makarov puts it, Popovkin be on the hook for product quality:

“He will work with defense-industrial complex enterprises to control their production of armaments and military equipment for the Armed Forces.”

Popovkin’s old job of Chief of Armaments, Deputy Defense Minister will disappear most likely.

Makarov told reporters Russia plans to move to netcentric command and control by 2015, once it equips its troops with new C3 systems united in one information space.  Such systems are now scarce, but he says, they are working hard so to install digital equipment everywhere.  Makarov calls this the main renovation that he’s giving all structures and troops starting in the fall of this year.  He says Russia’s new command posts unite reconnaissance, target designation, and troops and weapons to execute combat missions in real time.

It’s interesting that RIA Novosti took time to explain that the netcentric concept is an American creation more than 10 years old, and one not loved by those used to strictly centralized command and control.

Makarov told the press the army will begin forming light brigades, which it currently doesn’t have, this year.  They’ll have light combat vehicles of some type.  While not providing details, Makarov emphasized that light brigades will be built around a standard vehicle, so that, as in Vostok-2010, a brigade can fly in and its personnel can marry up with their normal vehicles in their place of deployment. 

Answering a question, Makarov said Russia will buy more Il-78 tankers in GPV 2011-2020, but he didn’t specify a number.

Makarov announced an intention to equip all Russian combat aircraft with new targeting-navigation systems over the next three years.  He said the new equipment will increase the accuracy of air strikes and allow the Air Forces to “abandon the previous practice of area bombing.”  He said the new system was tried on a Su-24M2 during Vostok-2010.  Installation of the targeting equipment on the Su-24M2 began in 2007.  Makarov said the VVS has nearly 300 Su-24 of all variants, and naval aviation about 60.

Stoletiye.ru had an interesting observation on Makarov and efforts to streamline command and control in the Russian Army.  It said the move to 4 OSKs and other steps are intended to reduce duplication of officer responsibilities and make 2-3 officers responsible for the fulfillment of combat missions.  It quoted Makarov, “We’ve eliminated the system of spreading responsibility throughout the Defense Ministry.”

More Money in GPV-2020

ITAR-TASS yesterday cited a Military-Industrial Commission (VPK) source who said the volume of financing for the State Armaments Program 2011-2020 (GPV-2020) will be 13 trillion rubles (roughly $430 billion).  The source said this amount includes purchases of new arms and equipment, development of new types, soldier gear, and other army necessities.  He said the Finance and Economic Development Ministries are familiar with the amount and have not objected.

As background, ITAR-TASS reminded that this money is supposed to get Russia to not less than 30 percent modern armaments by 2015, and not less than 70 percent by 2020, according to Prime Minister Putin’s goals.

Deputy Defense Minister, Armaments Chief Vladimir Popovkin has said the RF Security Council will review GPV-2020 in June, and it will be the basis for developing a new Federal Targeted Program for OPK development.

So, 13 trillion rubles over the 10-year period is 1.3 trillion rubles in procurement per annum (undeflated, of course).  At face value, this is a significant increase over the old GPV 2007-2015, which was reportedly funded at 5 trillion rubles for 9 years, or about 550 billion rubles in military purchasing per annum.

But it’s not so easy.  First, the cascading and overlapping way the GPVs are done (how did the last years of the old one mesh with the first years of the new one?) would make it well-nigh impossible to judge what was actually bought, even if it were clear how much money was disbursed when and what was bought with it.  But none of those things are clear to outside observers, and probably not clear even to officers and officials inside the system.

Rearmament Tempo Less Than 2 Percent Per Year

Vasiliy Burenok

Vasiliy Burenok told a round table at the ‘Army and Society’ exhibition in Moscow Friday that the current pace of Russian force modernization, not more than 2 percent, won’t support the transition to a ‘new profile’ military.

Burenok is Director of the Defense Ministry’s 46th Scientific-Research Institute (46 NII).  The 46 NII is a lead organization involved in formulating the State Armaments Program (GPV) and State Defense Order (GOZ).  It works on military-technical policy documents and program planning methodologies.  Burenok is a member of the Scientific-Technical Council of the RF Government’s Military-Industrial Commission (VPK).

Reviewing history a bit, Burenok told his audience, at the beginning of the 1990s, the rearmament rate was 5-7 percent annually.  But, between 1991 and 2000, financing for new arms and equipment declined more than 50 times, leaving only enough money to maintain existing weapons.

Burenok concludes to get the army to the ‘new profile’ it’s essential to introduce 9 percent new equipment every year, and for some services and combat arms, up to 11 percent.

This 9 to 11 percent is, of course, the difficult target President Medvedev set at the Defense Ministry Collegium.  Burenok indicated just how difficult–going from less than 2 to an 11 percent annual renewal rate.

Armaments Chief and Deputy Defense Minister Vladimir Popovkin also addressed the ‘Army and Society’ round table.  He said GPV 2011-2020 will go to the president for approval in June.  The new GPV will be accompanied by yet another new Federal Targeted Program for OPK Development.

Popovkin said a number of systems won’t be produced under the new GPV.  They include short-range tube artillery, and BTR-80, BMP-2, and BMP-3 combat vehicles that soldiers are afraid to ride in.

Limited Productive Capacity, High Demand for Arms and Equipment

Surprisingly little attention, beyond routine press service reports, went to last Tuesday’s (16 February) government conference on the State Armaments Program, 2011-2020 (GPV-2020).  RIAN and older media reporting indicates the GPV-2020 will be adopted next month.

Prime Minister Putin told the attendees, “We are talking about the time frames and kinds of weapons systems we need to provide to our army and fleet, that have to be put into the arms inventory.”  Noting that nuclear deterrence forces, space, and air defense would be emphasized, Putin also said:

“We have to satisfy, as I already said, the troops’ need for modern communications, command and control, reconnaissance and, of course, complete the fifth generation aircraft, new combatant designs for the Navy.”

He reiterated earlier declarations that modern armaments in the forces must be 30 percent by 2015, and 70 percent by 2020.

Other Putin sound bytes:

“We have to provide essential financial resources for this task.  The Finance Ministry, the Economic Development Ministry have made the necessary calculations, and today we’ll need to analyze them.  Right off I want to note that we can’t allow any inflated estimates, ineffective expenditures.”

“The State Armaments Program has to give long-term guidance for developing the defense-industrial complex itself.  This must enable our enterprises to embark on a corresponding modernization.”

“We’ve conducted a whole series of meetings on these issues, but the Defense Ministry must provide the corresponding technical parameters.  We have to support the technological equipping of our defense-industrial complex exactly under these parameters.”

Finally, Putin indicated defense orders will go to enterprises that will be in a condition to produce truly competitive systems in terms of combat power, range, and protection.

Participants in the conference also reportedly discussed a new draft Federal Targeted Program (FTP or ФЦП) on the Development of the OPK.

On 15 February, Putin met with Industry Minister Khristenko and Director of the Federal Service for Military-Technical Cooperation (FSMTС or ФСВТС) Mikhail Dmitriyev.  Khristenko told Putin last year OPK enterprises received 148 billion rubles in state support (6 billion in credits, 60 billion in capital injections, 76 billion in state-guaranteed credits, and 6 billion in subsidized interest rates on export credits).  According to Khristenko, this support allowed the OPK to increase its production 10 percent.

Unnamed Defense Ministry sources said the 76 billion rubles in state-guaranteed credits are difficult to use, and not all were used.  The 60 billion rubles in capital injections were basically a direct budgetary grant, and, according to one aviation plant manager, 20 billion of it went (get this!) to compensate RSK MiG and other producers for the fiasco with their 34 faulty MiG-29s sold to, and returned by, Algeria.

FSMTC Director Dmitriyev told Putin the volume of Russia’s current arms export contracts is $34 billion, and exports will be $9-10 billion over the next two years.

Aleksey Nikolskiy writing for Vedomosti indicated Dmitriyev said several enterprises have orders for some systems scheduled out to 2017, and some foreign customers have raised the issue of quicker deliveries.  He argued that additional production capacity is needed, but Putin proposed only to review the issue of synchronizing domestic and export orders for arms.  He said, “We have to understand in what time frame we can and have to produce for ourselves and our foreign partners.”

A source close to Rosoboroneksport said the issue concerned limitations in production capacity for the S-300PMU2 and S-400 air defense systems, the Su-35 fighter, and surface-to-surface missiles that don’t allow for simultaneously meeting the demands of foreign customers and the Russian Armed Forces.  Vedomosti noted that VVS CINC Zelin already complained about limited productive capacity for the S-400.  A similar jam exists with the Su-35, which is supposed to enter the VVS and some foreign air forces by the end of 2011.  A Defense Ministry source said there’s a proposal to build two new factories for air defense systems, and to enlarge existing enterprises producing critical equipment, and the government might soon adopt the proposal.

Konstantin Makiyenko of CAST (ЦАСТ) told Vedomosti, for the past 2 years, Rosoboroneksport has received more orders than what it has supplied abroad, and the lack of sufficient productive capacity has become the main limiting factor on the growth of arms exports.  He says either increase the capacity or the army will have to wait for arms it doesn’t need too much, but air defense systems and fighters don’t fall into the category of things not urgently needed.

As Mikhail Rastopshin and others have been so kind to note, there have been a raft of OPK development and armaments programs over the years, but they don’t seem to get completed, each melding into the next albeit under a longer deadline.   In early 2009, Dmitriy Litovkin estimated no more than 20 percent of any arms program has ever been accomplished, even during the years of high oil revenues.

And you can’t do an armaments program without OPK development, and Russia’s defense-industrial base has been increasingly poorly positioned to support the arms program in recent years, according to Rastopshin and others.  And don’t forget about declining RDT&E.  Hard times for research institutes and design bureaus could mean that, rather than modern or futuristic weapons based on ‘new physical principles,’ new units of obsolete designs could be produced under an armaments program.

Here’s a telling reminder.  The  much-vaunted 2003 Urgent Tasks of the Development of the Russian Armed Forces document called for modern weapons at the level of 35 percent in 2010, 40-45 percent in 2015, and 100 percent by 2020-2025.  And now Moscow’s talking 30 percent by 2015 and only 70 percent by 2020.

As recently as 2006, the Russian military claimed 20 percent of its weapons inventory was modern.  But in March 2009, Defense Minister Serdyukov admitted the starting point was actually lower:

“. . . the bulk of [arms and equipment] are physically and morally obsolete. Natural loss is not being compensated by procurement.  As a result, the proportion of modern arms and military equipment is around 10 percent.”

This was when President Medvedev said large-scale rearmament would begin in 2011.

Nevertheless, in his November 2009 address to the Federal Assembly, Medvedev said:

“One of the most difficult yet fundamental tasks is reequipping the troops with new systems and models of armaments and military hardware.  There is no need to discuss some abstract notions here: one needs to obtain these weapons.  Next year, more than 30 land and sea-based ballistic missiles, five Iskander missile systems, about 300 modern armored vehicles, 30 helicopters, 28 warplanes, three nuclear submarines, and one corvette-class combatant must be delivered to the troops, as well as 11 spacecraft.  All this has to be done.”

A pretty daunting list when foreign customers are asking for their weapons too.