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Russia to expand private sector role in defence, n-sector

Posted on Nov 13, 03:15PM | IANS

Russia has plans to expand the role of private contractors in its defence sector, including in the production of strategic nuclear missiles.

According to the country's deputy Prime Minister Dmitry Rogozin, "by doing this we will reduce production risks, create healthy competition, and infuse the defence sector with 'fresh blood', new ideas and entrepreneurial adrenalin".

He revealed though the production of nuclear weaponry would remain under tight government control, up to 300 or 400 companies might be involved in the production chain.

In this, assignments given to private contractors could include the development and production of electronics and novel materials for missiles.

He said private contractors should account for between 30 and 35 percent of Russia's defence and allied industrial sectors.

The figure stands at 60 percent in the US, but Russia has a stronger government sector with 1,350 state-run military industry enterprises, Rogozin added.

Russia is the second largest conventional arms exporter after the US, with USD 8 billion worth of exports in 2008.