Tag Archives: OPK

Re-Industrializing for Military Modernization

Golts

Golts

It’s been Golts overkill.  Despite the risk of overdosing, he has an article in Ogonek from 25 September which merits attention.

One could do much, much worse than to pick him, if you could read only one commentator.

Golts tries to explain why Russia’s OPK, its defense sector, has failed.

He gives prominent examples of defense industrial shortcomings including the most recent Bulava and Proton-M failures.  Interestingly, he says all serially produced Bulava SLBMs are being returned to Votkinsk for inspection.

Calling the list of failures “endless,” he concludes, “Production standards are falling uncontrollably not only in the space sector.”  He continues:

“The thing is not only particular failures.  Experts from the military economics laboratory of the Gaydar Institute suggest that defense order 2013 will be disrupted just as it was in previous years.  According to their data, defense order 2012 was revised and lowered at least three times.  And still it was unfulfilled by approximately 20 percent.  Accounting Chamber auditor Aleksandr Piskunov was extremely forthright in the Duma hearings:  ‘Almost one hundred percent fulfillment of state defense orders for the last 20 years hasn’t interfered with the failure of all armaments programs, with fulfilling them at 30, 40, 50 percent.'”

You may recall reading Piskunov here at the start of April.

Then, Golts notes, Putin himself cast doubt on the OPK’s ability to fulfill the current GPV.  He recalls the late July meeting when Putin indicated he’d entertain slipping ships and submarines due after 2015 into the next GPV (to 2025), so that there aren’t more “failures.”

Putin said work should be organized so producers’ capabilities coincide with the allocated funding.  Money, he said, shouldn’t be hung up in accounts [and stolen] while we wait for ships.  Golts reads this as Putin recognizing that the state of domestic industry is such that it can’t assimilate the gigantic sums allocated to it.

The defense sector has structural problems that endless calls for mobilization to face an aggressive West can’t resolve (i.e. a workforce that’s almost reached retirement age, continued aging of basic production equipment).

Golts again turns to Piskunov, who said only 20 percent of defense enterprises approach world standards in terms of technical equipment, and nearly half are in such a poor state that resurrecting them is senseless — it would be better to start from a “clean slate.”

But Golts focuses on poor coordination and cooperation among enterprises, government customers, and sub-contractors.  He turns to the familiar case of Bulava — 650 different enterprises reportedly have a hand in turning out this missile.

Most damning, Golts compares today’s “so-called united state corporations” unfavorably to Soviet-era defense industry ministries.  Ineffective and bureaucratized, the latter still managed to manufacture massive numbers of weapons.  And Gosplan matched prices for products and production by fiat.  Today’s goskorporatsii can’t.

There’s another important difference, Golts points out.  All Soviet “civilian” industries also produced arms, or parts for them.  Average citizens buying civilian goods helped finance military production with their purchases.

But the largest part of this permanently mobilized industrial system died in the 1990s and surviving parts retooled for other production.  Many in the latter category no longer wanted part of the defense order which would only make them less competitive in their main business.

Then Golts concludes:

“But it’s impossible to begin serial production of armaments without serial production of components.”

Today’s OPK chiefs don’t have the talents of some of Stalin’s industrial commissars, says Golts.  They are, however, good at blaming ex-Defense Minister Serdyukov for “destroying” the voyenpred system.

Golts really gets to it here:

“In reality producers of complex military equipment have a choice.  They can either make components in final assembly plants in a semi-artisan fashion.  Or they can buy them on the side, risking getting crap made in some tent.  It stands to reason the problem isn’t confined to recreating the military acceptance office in enterprises.  Complex chains of sub-contractors have to be established.  And, we note, even with money — this isn’t a banal task.  We’re really talking about new industrialization, the construction of new enterprises.  But just what kind?”

Golts recommends a policy of targeted and specialized re-industrialization.  Because of the expense, he says build specialized component factories to support production of critical systems where Russia is decades behind developed states — communications, reconnaissance, UAVs, precision weapons.  Russia will have to prioritize and Golts doesn’t see tanks, ships, and heavy ICBMs as priorities.  Those who pick the priorities have to withstand attacks from lobbyists for these weapons.

Golts believes Deputy Prime Minister and OPK tsar Dmitriy Rogozin knows the bind he’s in . . . and that’s why he says put off the beginning of serial production of many armaments until the next armaments program (2016-2025).

Golts concludes:

“Generally, the rearmament of the Russian Army is entering a new cycle.  Without any kind of results.”

Clean Slate

It took a brave man to tell the State Duma what department chief Aleksandr Piskunov said in the Audit Chamber’s annual legislative report in February.  Voyenno-promyshlennyy kuryer published excerpts of his remarks.

Piskunov’s a government official.  Not a powerful voice, but an authoritative one in his specialty.

Auditor Aleksandr Piskunov

Auditor Aleksandr Piskunov

To say he’s well-equipped for his work is an understatement. 

Sixty-one or 62 years old, Piskunov graduated from the RVSN’s Dzherzhinskiy Military Academy with a radio engineering degree.  He served on active duty to the rank of general-major, spending many years at the Plesetsk cosmodrome.  He later trained in the RF Government’s Financial Academy and a business school in London.  He has a PhD in economics.

Piskunov served in both the RSFSR Supreme Soviet and State Duma in the early 1990s, and was deputy chairman of the Defense Committee for each body.  He also chaired the Defense Ministry’s Military-Technical Policy Committee.  In the mid-1990s, he moved to the staff (apparat) of the RF Government and was deputy chairman of its Committee on Military-Industrial Issues.

He returned to the Duma briefly in 1999, and became deputy chairman of its “Regions of Russia” faction.

He went to the Audit Chamber in 2001, and is currently in his third term of service.

Piskunov thinks Russia can’t produce new, better, or more weapons and military equipment without modernizing its badly neglected defense industrial base.  But he has pretty much nothing but scorn for the current management of the state defense order.  And he sees little but failure in the GPV over the last 20 years.  In particular, Piskunov calls for incorporating life cycle costs into the GPV.  Ultimately, however, he says auditors and accountants can’t fix the GOZ or GPV, but lawmakers could.

Enough preamble.  Here’s VPK’s excerpt of Piskunov’s remarks.

“STRICT CONTROL OF FULFILLING THE ARMAMENTS PROGRAM IS NEEDED”

“I represent a department that performs strategic audits in the Audit Chamber.  We’ve done a lot of work in evaluating the condition of practically all 1,350 enterprises of the defense-industrial complex, their financial stability and real contribution to equipping the Armed Forces.”

“We looked at how balanced the program of defense-industrial complex modernization and State Program of Armaments were.  A gap of 700 billion rubles was observed.  At the same time, 1 trillion 200 billion is built into the budget to guarantee compensation to enterprise directors who go to commercial banks for credits.”

“Similar credit practices are leading to the growth of OPK enterprises with an unstable financial situation.  More than 30 percent are like this.  Only 20 percent come close to world standards in technical equipping.  More than half are in a condition where their restoration is already senseless — it would be better to build from a clean slate.”

“In preparing the law on the state defense order we tried to correct this situation.”

“From my point of view, our system of administering the state defense order is uncompetitive.  The adopted law preserved the situation under which  management amounts to a lag in the state defense order.”

“The deputy prime minister, responsible for the defense-industrial complex, reported that the state defense order was fulfilled by 99 percent as in past years.  But almost one hundred percent fulfillment of state defense orders over the last 20 years has not prevented the failure of all arms programs or fulfilling them at 30, 40, 50 percent.”

“Dmitriy Rogozin himself noted that fulfillment happened because of the appearance of realization.  During the execution of the arms program 7,200 changes were introduced into it, that is the real result is being slanted to agree with this fact.”

“Meanwhile Rogozin recognized that the arms program has gotten old.  The task of preparing a new State Program of Armaments stands before him.  So the problem of forming a legislative basis and management of the State Program of Armaments is more acute than ever.”

“Our opponents in government, having considered it inexpedient to include the management of the acquisition program life cycle in the GOZ law, said it was necessary to include this management in the law on the State Program of Armaments.”

“To me it seems necessary in this instance to hold them to their word — to propose that the government prepare a draft law on the State Program of Armaments.  It’s possible this will allow us to compensate for not realizing it in the GOZ law, and meet the president’s demand to create essential management of the life cycle of weapons systems.  But today the state of affairs is seriously complicated by the fact that the life cycle is really torn into several parts in the Defense Ministry itself.”

“Those who’ve served understand:  you can’t modernize armaments without the experience of using them.  Who really tracks all this life cycle?  It would be logical if Rosoboronpostavka were occupied with this, but it is located at the junction of the functional orderer — a service of the Armed Forces and a contracting firm.  It would be more appropriate to subordinate this department to the government.  It’s perfectly clear that the main risks are connected not to corruption, but to the low qualifications of the orderer.  Someone needs to “hang” over the orderer from the point of view of its responsibility for how both the program and the contract as a unitary whole are being executed.  Juridical responsibility is not rebuilt only through the contract.”

“The level of project management in our ‘defense sector,’ unfortunately, is also very low, especially the quality management system.  We are all witness to what is happening now in space.”

“It’s frightening that it’s impossible to create new equipment without metrics.  We lost the project management culture and stopped training specialists in military academies and schools.  The very best on this plane is OOO ‘KB Sukhoy’ and it used the American experience-plan for metrics on developmental aircraft.  The Americans seized and simply closed the issue — this project is no longer being supported.  To rewrite project documentation now in some kind of domestic variant is complex, therefore the development of these systems is essential.”

“The participation of commercial banks in providing credit for the state defense order is an important question.  Now in the government they are discussing how these 23 trillion will go — through commercial banks, for free or for money?  It’s understood that banks simply don’t work that way.  There is a precedent — the government resolution on the Mariinka, the Bolshoy [theaters], the M-4 [highway].  If you calculate it, then 20 percent received from 23 trillion over these years, it’s necessary to take an additional amount from the taxpayers or cut the defense order by this sum.”

“Not less sensitive is the issue of intermediaries.  If the Defense Ministry and government don’t put transactions under the strictest control, then there are all the calculations on the defense order, life cycle and cooperation levels, we will mess up this program of armaments also.  This, undoubtedly, is one of the most dangerous questions for the Defense Ministry — too large lobbyist forces participating, too large sums going.”

“Questions of managing the life cycle and control of finances are the most fundamental.  The treasury is incapable of resolving this task.”

Shoygu’s Inherited Dilemmas

Shoygu and Serdyukov

Shoygu and Serdyukov

Before Russia’s holiday topor fully enshrouded military commentators, Gazeta’s Sergey Smirnov published an interesting piece on the situation in which Defense Minister Shoygu finds himself.  There isn’t a lot of great comment on Shoygu yet, but it might be cranking up.  Smirnov looks at how the popular Shoygu could mar his well-regarded career while tackling the same accumulated military structural problems that faced his predecessor.  He writes about possible bureaucratic and personal conflicts with Sergey Ivanov, Sergey Chemezov, and Dmitriy Rogozin.

Leftover Problem One:  Contract Service

According to Smirnov, Russia’s military added virtually no contractees in 2012, but still has to recruit 50,000 of them every year until 2017 to reach its assigned target of 425,000.  The obstacles are the same.  Eighty percent of them don’t sign a second contract because the army doesn’t offer living conditions more attractive than barracks.  Undermanning is a related problem.  Smirnov says the military’s manpower is certainly below 800,000.  And Shoygu may have to acknowledge this problem.

Leftover Problem Two:  Bureaucratic Competitors

Smirnov describes Serdyukov’s conflict with Rogozin over the OPK and its production for the military.  He claims the “Petersburg group” of Sergey Ivanov, Chemezov, and Viktor Ivanov wanted one of its guys to take Serdyukov’s place at the Defense Ministry.  But Putin didn’t want to strengthen them, so he took the neutral figure Shoygu.

According to Smirnov, Serdyukov wanted out, and wanted to head a new arms exporting corporation to replace Rosoboroneksport.  That, of course, conflicted directly with Chemezov and the interests of the “Petersburgers.”  And Smirnov makes the interesting comment:

“But that appointment [Serdyukov to head a new arms exporter] didn’t happen precisely because of the big criminal cases which arose not by accident.”

Was Serdyukov done in for overreaching rather than for corruption scandals in the Defense Ministry?

Shoygu, writes Smirnov, was not thrilled at the prospect of continuing the “not very popular” army reforms.  Smirnov is left at the same point as everyone else:  will it be a “serious revision” of Serdyukov’s reforms or a “course correction?”

There’s lots of talk to indicate the former rather than the latter.  The new VVS CINC has bloviated about returning to one regiment per airfield instead of large, consolidated air bases.  He claims the Krasnodar, Syzran, and Chelyabinsk Aviation Schools will be reestablished.  He babbles about going to a three-service structure and retaking VVKO.  Shoygu will allow Suvorov and Nakhimov cadets to march in the May 9 Victory Parade.  He stopped the Military-Medical Academy’s move out of the center of Piter.  Other commonly mentioned possible revisions are returning to six MDs and transferring the Main Navy Staff back to Moscow.

Leftover Problem Three:  Outsourcing

Serdyukov’s outsourcing policy led to scandals, and didn’t work for the Russian military’s remote bases.  Gazeta’s Defense Ministry sources say the structure and activity of Oboronservis will likely be greatly modified or, less likely, Oboronservis will be completely disbanded if some workable entity can take its place.

Leftover Problem Four:  Military Towns

The military wants municipal authorities to take over the vast majority (70-90 percent) of a huge number of old military towns (that once numbered 23,000) no longer needed by Armed Forces units.  The army only wants some 200 of them now.

The local government wants the military to provide compensation to restore and support these towns, but the latter doesn’t have the funds.  The army is laying out billions of rubles in the next three years, but only to outfit 100 military towns it wants to use.  There is also the problem of who gets, or has the power to give away, legal title to this military property.

Leftover Problem Five:  Officer Housing

Shoygu, says Smirnov, has to solve the unresolved problem of officer housing, especially for officers “left at disposition” of their commanders (i.e. not retired but lacking duty posts and apartments).  The Defense Ministry still doesn’t know how many need housing.  Smirnov writes:

“Despite the fact that the military department daily reports on the handover of apartments, the line of officers retired from the army who are awaiting receipt of living space is not becoming smaller.  At present from 80 to 150 [thousand] former officers are awaiting the presentation of housing.”

More than enough lingering headaches for one Defense Minister.

Russia’s Arms Race

Sergey Karaganov

Sergey Karaganov wrote recently about Russia’s need for a military buildup.  His article appeared in Vedomosti, Russia in Global Affairs, and finally on the Valday discussion club’s site.

He sets out to explain why Russia needs a buildup, and why conventional military power is still relevant in today’s world.  He tries to square the buildup with a “record low” military threat to Russia.  But most of his text criticizes Kremlin intentions.

Down on Russia’s armaments plan, he’s high (probably too high) on the results of Serdyukov’s defense reforms.

It’s worth extracting and distilling some of Karaganov’s points into a stronger concentration.

He gives this as a general rule, but doesn’t (but should) emphasize how this applies to Russia:

“. . . nation states have lost much of their original strength.  Their ability to control information, financial, economic and political processes in their territories is wearing thin.  Also, they are becoming ever more dependent on the outside world.  There emerges another argument in favor of greater reliance on arms as the only tool of which the states almost entirely keep control.”

So Russia, like other states (perhaps to a greater degree), looks to its armed forces as the lone attribute of its sovereignty?

Russia, Karaganov contends, faces no external threat through the medium term.  A strong China is a problem, but not necessarily a military one.  Threats from the south are not like existential ones that shaped Russian history for centuries.  And the threat of a U.S. strike on Russian territory looks “ridiculous.”

Karaganov continues, saying the buildup is more about politics than anything else:

“I believe that in the eyes of the Russian leadership the need for gaining greater military strength will stem first and foremost from the factors of the country’s international positioning and the predetermined prospects of its political development.  Four years of sweet mumbling about modernization and practically no concrete action, except for Skolkovo, clearly demonstrates that neither society nor the elite is prepared for a modernization breakthrough.”

He describes why Russia’s ruler(s) opted for the buildup, then offers tepid support for it:

“It looks like the military buildup is expected to compensate for the relative weakness in other respects – economic, technological, ideological and psychological.”

“Criticizing this choice for being dissonant with the modern world is easy.  To a large extent this is really so.  But the modern world is changing so rapidly and unpredictably that quite possibly this choice is adequate.”

While lauding military reforms thus far, he admits:

“There are no well-considered re-armament plans behind them.”

“The process of rearmament is tough-going.  The defense-industrial complex has been bled white.  Still worse, it is not being reformed.  It is now a pale shadow of the Leviathan of the Soviet era. Just what the Russian army was only recently.”

Karaganov continues questioning the rationale for, and consequences of, the buildup:

“The military buildup policy is not only generally desirable for the ruling elite, and, possibly, for the country, but also inevitable.  The question is how and at what cost.  It will be important not to overspend, thereby ruining the development budgets.  In the meantime, it looks like a policy has been launched towards suicidal (for the country) cuts in spending on education, instead of its dramatic increase.  The reduction will upset even the beyond-horizon chances of making a modernization breakthrough.”

“It would be very silly to overspend and over-arm oneself beyond any measure only to breed more enemies, who would be looking at Russia with horror.”

“What makes the risk of mistakes still worse is that there are practically no institutional restrictions on the arms race.  Only two restraints exist at the moment.  The finance ministers – the current one and his predecessor – have been doing their utmost not to give as much as they were asked for.  And the defense minister has been trying to limit the appetite of what’s been left of the defense-industrial complex – thirsty for investment and, admittedly, corrupt as elsewhere.  In the current political system the national parliament is unable to play any tangible role in shaping a new military policy and in forming the budget.”

“No less alarming is the absence of an academic or public discussion of military policy priorities. In the meantime, there was such a discussion, although in a very limited form, even back in the last years of the USSR.  The academic think tanks created in those times are aging morally and physically.  From the right, liberal side the current military policy is criticized by a handful – literally two or three – of authors.  They surely deserve words of praise for being so bold.  But they lack knowledge and are politically engaged and biased.  In the center there is a group of experts close to the defense ministry, who are obliged to praise whatever it does and turn a blind eye on its mistakes.  And on the left side – in the mass media that are fortunately not quite available to the general reader – one can find publications by tens and even hundreds of specialists representing the remains of the financially and intellectually ruined academic part of the Soviet military-industrial complex.  I am not going to surprise the reader with the phantasmagoric threats these experts try to scare the country and themselves with.  Quite often their descriptions have no bearing on the reality and are nothing but caricature replicas of Soviet-era fantasies.”

“But to realize what is to be done, it is necessary to purposefully promote independent social, political and scientific analysis of the processes that are underway in the military sphere.  Or else there will be too many mistakes to be paid for too dearly.”

It’s pretty clear the new defense minister won’t be a brake on the OPK any time soon, if ever.

And Karaganov’s right, the lack of legislative or expert debate on defense policy is alarming.  But where in Russia hasn’t outside input and influence on politicians and policymakers waned?  His criticism of the state of press commentary on defense issues is a bit dramatic.

Anatoliy Serdyukov’s strength was making changes instead of talking them to death.  This approach engendered lots of resistance.  But, in the end, an intra-elite squabble rather than opposition to his policies brought his resignation.

Putin on Ground Troops and VDV

Meeting on GPV for Ground Troops and VDV

Kremlin.ru has the transcript of President Putin’s introductory remarks yesterday at a meeting on the land armaments portion of the State Armaments Program, the GPV.  This is his second review of where things stand.  Recall in mid-June he held a session on the Air Forces and the GPV.

Noting that “leading countries” are increasing the potential of their ground forces with new reconnaissance, C2, and “highly accurate” systems, as well as modern armor, Putin continued:

“I remind you in the framework of the state armaments program to 2020 it’s planned to allocate more than 2.6 trillion rubles to outfitting the Ground and Airborne forces.  We have to reequip units and sub-units, to fill the troops with new equipment with these resources.  By 2020 its share must be not less than 70 percent.”

“So 10 ‘Iskander-M’ brigade missile systems, 9 S-300V4 army brigade SAM systems, more than 2,300 tanks, nearly 2,000 self-propelled artillery and gun systems, and also more than 30,000 units of automotive equipment alone must enter the Ground Troops.  Besides this, it’s planned to introduce new communications, C2, advanced reconnaissance systems, individual soldier systems.”

As previously, the president stressed that complete fulfillment on schedule and at agreed prices is “very important.”

Then Putin turned to three problem areas.

First, fielding new weapons systems is complicated by the involvement of many sub-contractors.  A breakdown in one contract can cause an entire effort to fail.  Putin cited the VDV’s new BMD and YeSU TZ as examples:

“[BMDs] still haven’t gone through state testing and, as a result, haven’t been accepted into the inventory.  In turn, this is impeding development of practically all the VDV’s weapons sub-systems.  Today I’d like to hear, respected colleagues, why the task of the state program in the area of armor development and supply to the VDV hasn’t been fulfilled.”

“Creating a unified command and control system for troops and weapons at the tactical level [YeSU TZ] is another example.  The test model still doesn’t fully answer the requirements the Defense Ministry set out.  And I’d like also today to hear how this question is being resolved.”

Refer here and here for recent words on the BMD-4M and YeSU TZ.

Second, the Ground Troops and VDV spend too little on R&D (10 and 5 percent of what they spend on serial purchases and repairs respectively).  And the R&D money is put toward a small number of projects.  The president wants more work on advanced soldier systems, infantry weapons, individual protection, and comms.

Third, and finally, there’s a mess in Russia’s munitions industry.  There’s no long-term plan for ammunition makers, and this presents a problem for new arms systems.  The time has come, Putin said, to determine how the Defense Ministry and enterprises in this sector will interact.

President Putin has really seized on the GPV.  It seems near and dear to him.  Or perhaps it seems more tractable than Russia’s political and economic problems.  More amenable to his directive leadership and manual control.

The cases Putin mentioned are longstanding, well-known “poster children” for the problems of the OPK, i.e. easy and logical targets.  One wonders what more pressing and acute, if less publicly advertised, military-industrial difficulties were discussed.  Putin’s focus on R&D is also a bit odd when you consider it’s been blamed for waste and slashed.

Putin didn’t address strong rumors and denials of slipping the schedule for GPV 2011-2020 to 2016-2023.

Does the GPV Look Like This?

If Putin keeps on the GPV, perhaps we’ll gain a somewhat sharper picture of how it’s shared out.  It’d be interesting to learn where the RVSN and VVKO fit.

Defense News

Some Russian defense news from June 27, 28, and 29 . . .

A few stories from Technologies in Machinebuilding — 2012 now playing at Zhukovskiy.

A senior VVKO general said a long-range missile for the S-400 is being tested and will reach units soon, RIA Novosti reports.

An Almaz-Antey rep said the fifth S-400 “regimental set” will ready for delivery in September.  He also said the company will show the system to the Chinese this fall.

VVS CINC General-Major Viktor Bondarev told the press the first S-500 could reach the forces in 2013.

RIA Novosti quoted First Deputy Defense Minister Sukhorukov on Russia fielding its first strike UAV in 2014.  St. Petersburg firm Tranzas will test and deliver it in the same year.

Militaryparitet picked up Arms-Tass about Salyut’s presentation of a modernized AL-31F engine, the AL-31F M2.  The new engine is intended for       Su-27 variants.

Also at Zhukovskiy, RIA Novosti quoted Deputy PM Rogozin about declaring war on OPK monopolists.  Good luck with that.

RIA Novosti reports outgoing OSK head Roman Trotsenko cited conflict with the Defense Minister as his reason for leaving, and he blasted Serdyukov for unwise, unreasonable use of procurement money.  Sevmash chief Andrey Dyachkov is taking over OSK.

President Putin greeted and feted top graduates of Russia’s military academies.  He told assembled officers the Armed Forces’ combat capability and application of new equipment depends on them.  He emphasized resolution of military housing problems and improved living conditions for military families.

According to RG, Putin basically called for reestablishment of voyenpredy in defense plants while answering questions from Federation Council members.  Defense Minister Serdyukov has essentially dismantled the old military acceptance system.

Defense News

Some Russian defense news from Tuesday, April 24 . . .

Dmitriy Rogozin (photo: RIA Novosti / Aleksey Druzhinin)

Deputy Prime Minister Dmitriy Rogozin generated a good bit of news during his visit to the Urals last week.  It’s hard to keep up with him.  In a sense, it’d be a real shame if he’s not in the next government.

Krasnaya zvezda published a wrap of his remarks.

Rogozin indicated Russia will demand the best new weapons from its OPK, not “metal hulks” that are soon scrapped.  He laid out his reasons for not buying foreign armaments.  And, he says, Russia doesn’t want to be China, blindly copying foreign models.  But he said his country still wants ideas and technology, if not a lot of hardware, from abroad.

Rogozin blames Russia’s space launch woes of the weakness of its “element” or component base.

RIA Novosti reported his assessment that Russian military electronics lag foreign developments by 5-12 years.  Russia doubled its investment in electronics last year according to Rogozin.

But back to KZ . . . it gave this interesting Rogozin quote:

“Russia must no longer be a hydrocarbon partner, it’s time for us to become an industrial power [hasn’t this time passed?].  We could have become such a power in the last century.  Now it’s important to overcome the gap in Russia’s history.  If business won’t participate in the country’s development, then we won’t achieve anything.”

In some non-Rogozin stories . . .

Militaryparitet.com cited a blog citing Interfaks to the effect that Kurganmashzavod will not be asked to renew production of BMP-3s for the army despite earlier indications it would.  The item notes the President’s polpred in the Urals saying the army has also declined to buy the BMD-4M.

Mil.ru wrote about Ka-52 helo training at Chernigovka army air base in Primorskiy Kray.  More than half the base’s pilots already practiced on the Ka-52 at the Torzhok training center.  Chernigovka will be completely reequipped with the new helo this year, according to the Defense Ministry website.  The “intensity” of flight exercises at the base doubled over the last year and increased 45 percent in the first three months of 2012.

Mil.ru also mentioned the completion of LRA training in the Far East.  There were 40 bomber flights and ten cruise missile launches on the Litovka range according to the Defense Ministry.

Vzglyad citing Interfaks reported on Irkut’s president saying the company will make a combat version of the Yak-130 trainer.  It will have greater thrust and be intended for Russia and for export.

Last, an update on the Belevitin corruption case.  Former GVMU chief, Aleksandr Belevitin faces malfeasance and bribery charges that could net him a total of 22 years in prison.  Pretty harsh by Russian standards.  The state is also seeking 51 million rubles in damages from him.  His defense is still examining the prosecutor’s case against him.  Recall the state believes he and his deputy took bribes in return for procuring overpriced MRI machines from a foreign firm.

Defense News

Some Russian defense news for April 19-20, 2012 . . .

Krasnaya zvezda covered First Deputy Defense Minister Aleksandr Sukhorukov’s briefing on the progress of GOZ-2012.  He said contracting is at 77 percent, ahead of the last two years (50 and 47 percent).  The Defense Ministry’s GOZ funding was trimmed by 25 billion rubles, from a planned 704 to 677 billion (isn’t that 27 billion?).  GOZ money will be advanced in full, and 53 percent of contracts will be “long term,” according to Sukhorukov.

Sukhorukov's Press Conference

Sukhorukov told the media this year the Armed Forces will receive 28 Pantsir-S1, 58 aircraft, and 124 helicopters.  He discussed supplemental contracts for Mi-35, Mi-28N, and Mi-8MTSh helicopters.  The total GPV purchase of helicopters will apparently be 1,124.

ITAR-TASS reported Borey-class SSBN Yuriy Dolgorukiy will be accepted not later than mid-June.  Unit 2 Aleksandr Nevskiy will be accepted in August according to Sukhorukov.

This item also indicated Borey contracting for this year was almost done, and that units 4-8 will have 20 launch tubes.

Sukhorukov had no other specifics on defense procurement this year.

In its coverage of the press-conference, Arms-Expo.ru asked if GOZ-2012 isn’t broken already, at least in the munitions sector.

Meanwhile, in other OPK-related news . . .

Topwar.ru writes that small arms maker Izhmash’s bankruptcy is “going according to plan.”  Rostekhnologii’s plan, that is.

VPK.name reported the chairman of Ukrainian engine manufacturer Motor Sich’s board claims Russia will sign a contract for its first An-70 transport this year.  The GPV may include up to 60 of these aircraft.

Ivashov on the Army and Putin

Leonid Ivashov

Leonid Ivashov recently talked to Narodnyy politolog on a variety of army topics including reforms, the possibility of a big war, rearmament, president-elect Vladimir Putin, and his military program.  Segodnia.ru also printed the interview.

Once Russia’s top military diplomat, now avowed geopolitician, the former three-star thinks Putin fears externally-driven regime change and is improving the army to forestall such an eventuality.  Ivashov sees a U.S.-led West depriving Russia of allies before focusing on Russia itself.

Asked about army reforms, Ivashov says they have succeeded in cutting forces, but not in rearming them or improving their social conditions.  Reforms have degraded and weakened the army.  Military men mock the New Profile reforms saying, “There’s a profile, but not armed forces.”  Ivashov calls reforms craziness, and says it’s like servicemen have lived in a house under continuous repair for 25 years.

Following up his comment on mobilization reserves cut to the bare minimum, NP asked the retired general-colonel if a big war is possible today.

Ivashov says yes.  Citing how “they” are beating up Russia’s strategic allies (Syria and Iran), he says “What is this if not war?”

Ivashov foresees a large conflict between the U.S. and China and possible spinoff regional and local wars.  He cites a Chinese specialist who calls for a Russian-Chinese alliance to deter a big war and curb the appetite of the West and international oligarchs.

Is Russia ready for such an eventuality?  Ivashov answers:

“I think Putin understands perfectly how military weakness and the absence of strategic allies can be the end for Russia.  Clearly, the Libyan situation ‘helped’ him understand this, just like what is happening now in Syria, and what they are preparing for Iran.  If you can’t defend the country, you are subjecting yourself to a great risk personally.”

“Now Putin is making a sharp turn to the side of strengthening defense capability.  One can only welcome this.  Because today they don’t simply beat the weak, they destroy them.”

Ivashov calls Putin’s military program ambitious, if not systematic.  The regime’s been in a “light panic” since Libya.

He intimates that more than 20 percent of the state armaments program will be stolen since the amount of theft cited by the military prosecutor covers only cases under investigation, not all corruption.

Ivashov suggests lobbying has replaced forecasts of future military actions as the driver of arms procurement.

The case of Mistral, which one wonders where it will be built and how it will be used, Ivashov says well-connected lobbyist structures ensure what gets produced is exactly what their enterprises make.  He was somewhat encouraged that Putin, at Sarov, entertained turning to specialists and experts to examine the army’s requirements.

On GPV 2020, Ivashov concludes it’ll be a serious step forward if only half of what’s planned gets produced, but it can’t be equipment designed in the 1970s and 1980s.  He sees OPK production capacity problems too.  He questions whether Votkinsk can produce 400 solid-fueled ballistic missiles by 2020.

Returning to the big war, he questions a focus on defensive operations for Russian conventional forces, saying offensive capabilities are needed to deter potential enemies.  He claims reduced force structure and mobilization capability have become a joke in the General Staff:

“The main problem for the Chinese in a conflict with us is not defeating our brigade, but finding it.”

Ivashov’s just a little up in arms over the armor situation.  He all but accuses the General Staff Chief of being a paid (or bribed) lobbyist for foreign tank and armored vehicle makers.  He suggests that Army General Makarov should be placed in cuffs if he says the Leopard-2 is better than the T-90 [what about Postnikov then?], and the Main Military Prosecutor should investigate him.

So what is to be done first and foremost to strengthen the country’s defense capability today?

Ivashov replies get rid of Serdyukov and Makarov who have done great damage, and strengthen cadres in the OPK and military by replacing “managers” with those who can apply military science (as Ivashov was taught) to the problem of developing new weapons.

The always provocative Ivashov doesn’t venture whether he thinks  the current emphasis on defense capability will continue or have the intended results.  He seems sincerely to believe in a possible Western intervention in Russia’s internal affairs.  But it’d be more interesting to hear him talk about whether the army would fight for Putin’s regime in something less than that maximal contingency.  Ivashov, unlike some critics of Russia’s defense policy, shies away from blaming the once-and-future Supreme CINC for at least some of the current military state of affairs.

The Winner Is . . .

Putin, politics, and industrial policy.

One loser, for sure, defense policy.

Putin got his 63 percent.  He didn’t need fraud to get 50+ percent and avoid a second round, but he (or someone) wasn’t willing to take that chance.  The cheating should have drawn a flag for piling on or unnecessary roughness.  That it happened says something about Putin’s fear of being out of power.  But we digress.

Politics won over policymaking, not least of all in defense policy.

Yes, Russia is not the only place this happens.  It happens in most of the world’s democratic states.  This doesn’t prove Russia’s a democracy; it just proves Russia has politics.  But so did the USSR.  It had fights between industry and the military.

But back to our story.

Promises and populism secured votes for Putin in Russia’s industrial centers where they’ve waited years for serious defense orders.  He’d have won here without writing checks his treasury might not be able to cash.  But the once-and-future Supreme CINC made pledges he may hope factory workers forget before 2018.

If they don’t, working class disgruntlement may mingle with urban, middle class discontent in an increasingly flammable political mixture.

The case in point here is tanks and Uralvagonzavod in Nizhniy Tagil.  Did Putin court anyone, or any defense enterprise, more than the General Director of UVZ Oleg Siyenko?  Did anyone get comparable preelection attention?

The closest we get is Putin’s intervention between the Defense Ministry, OSK, and Sevmash to solve their submarine pricing dispute last fall.  But industry didn’t exactly get everything it wanted in that case.

Siyenko Casts His Ballot

In an election day press-release, this industrial chieftain all but admitted his employees were ordered to vote for Putin.  Most probably never entertained the thought of doing otherwise.  UVZ likely didn’t have to organize “carousels,” but  “corporate voting” might have occurred.

On February 20, Putin declared 2,300 “new generation” tanks will be produced (by UVZ) under GPV 2020.

It was just February 15 that Putin had a meeting with Defense Minister Serdyukov and Siyenko.  It was actually more of a beating, for Serdyukov.

Putin With Serdyukov and Siyenko

The Defense Minister had to back down publicly from everything he’s said about tank acquisition over the last couple years.  He acknowledged, as Putin said, there will be a new tank from UVZ in 2013 that will enter series production in 2015.  And, for good measure, Serdyukov said the manufacturer will receive 100 percent advance payment on the GOZ.

As recently as January, the Defense Minister was lamenting huge stocks of old tanks and repeating his willingness to wait for fundamentally new armor rather than “new” T-72 or T-90 models.  In mid-2011, he criticized tank makers (UVZ) for dressing up old ideas, and said the army would just settle for updating its existing armor inventory.

Yes, everything changed sometime between then and now.

It was just prior to this Putin-Serdyukov-Siyenko session that General Staff Chief Nikolay Makarov again criticized the tanks offered to the army and argued for the military’s predominance in weapons procurement decisions.  Deputy PM Dmitriy Rogozin objected fiercely to Makarov’s public airing of dirty linen, and declared himself chief of acquisition.

All official doubts and complaints about Russian tanks heard in 2009, 2010, and 2011 were swept away in a stroke by Putin’s announcement.

It seems the Ground Troops — its supporting industry actually — were feeling left out of the GPV and GOZ.  Tanks were never one of Russia’s  priorities as enumerated by former armaments chief Vladimir Popovkin.

What do 2,300 tanks mean for the world’s largest country?  One that once measured sufficiency in tanks by the tens of thousands?  Is staving off a NATO ground attack really a top concern?  Would Moscow entertain putting most of its new tanks opposite China?  There’s been plenty written (including by Russians) about the end of the tank era.

What do these tanks mean for the GPV?  If they cost 200 million rubles per, the cost of the production run (if it actually happens) will cost close to 500 billion of the GPV’s 19 trillion rubles for procurement.  It’s a lot for one system.  The Putin-brokered sub deal in November was worth only 280 billion rubles.

So to return to the original point of this meandering post, these tanks are about industrial policy, updating the human and technical capital to make them, keeping a significant industrial center quiescent, and retaining the capability to sell tanks abroad.  There are, after all, other armies possibly facing big tank battles in the future.

When politics and defense intersect, the latter yields.  Nothing shocking in that, one admits.

One last thing.

Siyenko’s an interesting character.  The 46-year-old former bike racer and past President of the Russian Cycling Federation spent most of the 2000s as General Director of Gazprom subsidiary Gazeksport (Gazprom Eksport), selling natural gas to the Europeans.  From 2003, he was a deputy chairman of the shady gas intermediary Itera.  Itera Chairman Vladimir Makeyev too is a one-time world-class rider who succeeded Siyenko as the cycling federation’s head.

But suddenly in 2009, Siyenko changed tracks, and went to Sverdlovsk Oblast and UVZ in Nizhniy Tagil.  There must be a story explaining why he’d abandon gas for tanks and railcars.