Tag Archives: State Defense Order

Declining Defense Orders

Smaller military budgets and delays in putting GPV 2018-2025 into place will apparently trickle down into reduced orders for Russia’s defense-industrial complex (OPK) in coming years.

According to TASS on June 15, Deputy Chief of the Main Armaments Directorate Boris Nakonechnyy said the MOD can’t fully “load” OPK enterprises with orders during the next GPV.  “As the primary customer for weapons and military equipment, the Defense Ministry can’t fully support the work of enterprises,” he told the news agency.

There may be some reduction in defense orders during the new arms program, Nakonechnyy said.  But he indicated the MOD would still support the scientific work (presumably the RDT&E) of Russian defense-industrial enterprises.

Nakonechnyy said the MOD doesn’t expect global military threats to decline, but it’s not possible to increase substantially the funding needed to counter them.  At the same time, he emphasized it’s important for Russia not to lose the current tempo of development in its OPK, and not to allow itself to lag behind world leaders in military technology.

Welding parts for BMP-3 at Kurganmashzavod

Welding parts for BMP-3 at Kurganmashzavod

TASS provided no context for Nakonechnyy’s comments.  Other media outlets ran the TASS story as is.  Utro.ru, however, provided its own interpretation of his remarks.

While perhaps somewhat alarmist, Utro writer Andrey Sherykhanov puts Nakonechnyy’s statements in the context of the continuing battle between the defense and finance ministries over future military spending.

Sherykhanov recalls the recent Vedomosti report putting likely appropriations for GPV 2018-2025 at 17 trillion rubles, three times less than the original MOD request.  The peak of defense orders, he concludes, is already past.  The military will have no orders for production enterprises, which will close and send their workers on indefinite furlough as they did in the 1990s, he writes.

But maybe, Sherykhanov opines, this won’t be necessary since President Putin has said the OPK’s potential should be harnessed to the needs of cutting-edge, science-intensive sectors like medicine, energy, aviation, space, and information technology.  Last year the Supreme CINC himself said 30 percent of OPK production has to be for the civilian market by 2025, and 50 percent by 2030.  Massive state defense-industrial holding company Rostekh has already announced that half of its output will be civilian by 2025.

Sherykhanov writes that there’s no real concern about this new program of conversion to civilian production at present:

“In the upper echelons of power, they spoke about it just a year and a half ago. There’s a gathering sense that the leaders of Russian defense enterprises aren’t beating their heads with this, concentrating as they are completely on military orders which OPK enterprises are provided until 2020.  That is, they act according to this scheme:  we’ll handle this, and then we’ll see.”

Today We Are Stronger

shoygu-and-putin-at-the-mod-collegium-photo-kremlin-ru

Shoygu and Putin at MOD Collegium (photo: Kremlin.ru)

The year-end MOD Collegium fell on December 22.  International news agencies headlined what sounded like bellicose braggadocio from President Vladimir Putin.  “We are stronger now than any potential aggressor,” he said according to AP.

But his remarks were more nuanced than it’s possible to tell from that wire service quote.

His full speech to the assembled Russian brass is available here.

Putin featured Syria prominently, and indicated that Russia will take advantage of the greater demand for its weapons and equipment because of the war.

He listed force development priorities including “precision weapons, modern communications, reconnaissance, command and control, and electronic warfare systems” and strategic non-nuclear forces.

He noted that the SAP will be completed “by 2021,” effectively giving the military and industry all of 2020 (not just until the end of 2019) to reach its 70 percent modernization goal.  But he also mentioned “five years” to complete rearmament which sounds like 2017, 2018, 2019, 2020, and all of 2021.  The dates on the arms program are increasingly elastic as necessary.

Not surprisingly, Putin described a higher level of threat on Russia’s borders this year.

A complete translation of Putin’s speech follows.

“Respected comrades!”

“Today at the annual Ministry of Defense Collegium we will discuss results of work during the latest period, and determine near- and long-term tasks for the development of Russia’s Armed Forces and strengthening the country’s defense capability.”

“In 2016, the course of modernizing the army and fleet continued, rhythmically, and their reequipping went according to schedule.”

“The condition of the nuclear triad, which plays the key role in preserving strategic parity, was supported at the necessary level.  I note that the share of modern armaments in the nuclear forces is almost 60 percent.”

“The level of combat training of troops rose substantially.  The results of strategic command-staff exercise Kavkaz-2016 convincingly demonstrated this.  Its successful conduct increased the security of Russia’s southern borders, including from terrorist threats, and helped work out the organization of territorial defense in the Southern and North-Caucasus Federal Districts, including questions of supporting troops, for example their financing in wartime, that require coordination from many state organs and elements, including branches of Russia’s Central Bank.”

“I note also that four surprise combat readiness evaluations of troops took place in the course of the year.  They confirmed that units and sub-units could effectively deploy at great distances and in short periods of time to establish groupings in strategic directions. The Defense Ministry needs to analyze the results of the evaluations in detail and consider them in combat training plans for the future, and also in the organization of other measures of a similar type.”

“The potential of the Russian Armed Forces passed a stress test also in combat with international terrorists in the Syrian Republic.  The Syrian Army received tangible support, thanks to which it conducted several successful operations against militants.”

“I also note the great assistance which our Armed Forces renders to peaceful Syrian citizens.  Almost 800 tons of foodstuffs and medicine alone have already been transferred. I want to thank the leadership and personnel of the Armed Forces participating in the operation once more for their professionalism and courage.”

“Respected comrades!”

“In the coming year, the Ministry of Defense needs to concentrate on resolving the following key tasks.”

“First, to support the balanced development of all services and branches of troops, and to continue the assimilation of precision weapons, modern communications, reconnaissance, command and control, and electronic warfare systems.”

“It is necessary to strengthen the combat potential of strategic nuclear forces, primarily missile systems capable of assuredly overcoming existing and future missile defense systems.”

“Strategic non-nuclear forces also need to be brought to a qualitatively new level, allowing them to neutralize any military threats to Russia.”

“Second.  It is important to maintain the tempo achieved in rearming the army and navy.  To control the realization of measures in the State Armaments Program and fulfillment of the state defense order effectively.”

“By 2021 we need to achieve the established indicators of troop equipping with modern weapons and equipment at not less than 70 percent.”

“We need to make note that five years is not such a long period of time for such a large-scale rearmament program.  Any delay in fulfilling its tasks can cause a break in the production chain, which is then highly difficult to reestablish. Therefore sanctions for breaking contracts should be severe to the maximum extent. Meanwhile, it is important to effectively expose causes of violations and expeditiously eliminate them.”

“I note that essential measures to resolve problematic issues in the fulfillment of the state defense order have been taken at all levels.  On the whole, we need to keep the situation with the realization of the State Armaments Program and with the state of affairs in the defense-industrial complex under constant control.  You know we discuss these issues twice a year at regular meetings in Sochi.  This has already become a tradition which has been highly useful in practical work.  This year two cycles of such meetings occurred.  They allowed us to determine joint steps in the sphere of rearmament, and to support constant working contact between the leadership of the Ministry of Defense and industry.”

“Third.  We must closely follow any changes in the balance of forces and military-political situation in the world, especially along Russia’s borders, and simultaneously introduce corrections into plans for neutralizing potential threats to our country.”

“I ask you also to synchronize these plans with updated future planning documents.  Just a few weeks ago the new Information Security Doctrine of Russia was approved, and a little earlier the Scientific-Technical Development Strategy.  The milestones given in them concern all organs of authority, including also militarized departments.”

“Fourth.  The introduction of the newest training means and programs should be among the priorities of operational and combat training.”

“And last.  The effectiveness of employing Russian weapons in Syria opens new possibilities for the development of military-technical cooperation.  We need to use them to the maximum extent.  We know what kind of interest foreign partners are showing in modern Russian armaments.”

“Respected collegium participants!”

“One of the most important directions of military organizational development is increasing social support of servicemen.  You know how much has been done in this relation in recent times.  For example, since January 2012 the line for housing in the Defense Ministry system has been reduced 2.8-fold.  In 2016, 27 thousand servicemen were provided service housing,  and almost 20 thousand permanent housing.  Within the mortgage-savings system, 14 thousand servicemen obtained apartments.”

“It is necessary also to remember:  concern about personnel, and strengthening the social guarantees of soldiers and officers is important, the most important investment in the indoctrination of the young generation of defenders of the Motherland, and guarantee of the prestige of military service and the authority of people in uniform.”

“Respected comrades!”

“On the leadership of the Ministry of Defense, and on commanders at all levels, lies the special responsibility for the qualitative modernization of the Armed Forces.  I believe that in the future you will do everything necessary to achieve high results in combat training.”

“I want to thank the leadership and personnel of the Armed Forces for the precise fulfillment of established tasks, and for their conscientious service.”

“Allow me to wish you further successes.”

After Defense Minister Sergey Shoygu’s lengthy remarks, Putin concluded the session.

“Respected Sergey Kuzhugetovich, respected comrades!”

“In recent years, much has been done to increase the country’s defense capability. But, it stands to reason, much is still not enough.  The minister just spoke about this when he formulated tasks for 2017 and coming years.”

“We need to do much along the lines of strengthening the nuclear triad, perfecting the BMEWS system, in the Aerospace Troops [sic], still more at sea, and in the Ground Troops. We need to perfect reconnaissance and communications systems.  We still have much to do.”

“However today, given a very large number of factors, including not only military ones, but also our history, geography, and the internal condition of Russian society, it is possible with certainty to say:  today we are stronger than any potential aggressor.  Any.”

“At the same time, I would like to turn your attention to the fact that, if we were to allow ourselves for one minute to relax, to allow even one substantive failure in the modernization of the army and navy, or in troop training, the situation could change very quickly given the speed of events transpiring in the world.  We may not even notice.  Therefore, a very great deal depends on the continuation of our work, which began and has been conducted in the course of recent years.”

“I count greatly on you working in a coordinated manner, and being responsible for work assigned to you.  And, working in such a way, we, certainly, will fulfill all tasks which stand before us in the most important sphere of strengthening Russia’s defense capability.”

“I want to thank you again for your service in the past year and wish you success in the coming one.”

“All the best to you.”

“Thank you.”

So Putin wasn’t exactly bragging that Moscow is the biggest bully in the world, but rather claiming that, given Russia’s history and geography as well as its recent military modernization, the Kremlin can now be sure of repulsing any attack on its territory.  Assertions about evil U.S. and NATO intentions notwithstanding, what aggressor has designs on Russia today?  

Putin’s contention is a little abstract, lacking as it does any particular scenario or temporal context.  But it isn’t really as sinister as it sounded in Western media.

More to the point than Putin, however, is Maxim Trudolyubov’s conclusion from his recent op-ed:

“. . . Russia — with its renationalized economy and aging population — is now incapable of competing on equal economic and political terms with other major powers may have led the Kremlin to believe that it can compete only by other means — namely by displaying no hesitation at using force or covert influence to claim Russian greatness again.”

Dizzy with Success

On Topwar.ru on 15 September, Aleksandr Staver and Roman Skomorokhov asked whether President Vladimir Putin, like his predecessor Stalin, has decided to curb (at least temporarily) his key program.  Today it’s rearmament rather than collectivization.

The authors assess the program and its problems from a conservative viewpoint.

They assert the arms program is not being fulfilled and the MOD budget is being cut (whether admitted or not).  In particular, they contend, it is new weapons programs that are suffering, so they argue for cheaper modernization of existing armaments.

Debate over rearmament is a constant.  Staver and Skomorokhov don’t even mention that the start of the next arms program was delayed, or that the MOD and Finance Ministry are far apart on funding it.

For his part, Putin routinely says the current GPV will not be cut, and the armed forces will have 70 percent modern arms and equipment in 2020.

But 70 percent, according to the authors of this op-ed, is not enough.  More is needed.

Then they turn to corruption.  They allege that the ones who are “dizzy with the success” of the arms program are the ones who are stealing from it.  They say a return to 1937 would put an end to this, and to other problems with rearmament.

Recall that even Putin and United Russia once talked about bringing treason charges for non-fulfillment of the GOZ, but nothing came of it.

So much for preamble.

“Dizzy with Success, or ‘Alarm’ in the Russian Army”

“We are so used to the fact that our army is powerful that we almost don’t notice, or more precisely, don’t wish to notice that light ‘clouds’ threatening to turn into bad storms have appeared over Russia’s VS [Armed Forces].  We talk and write with satisfaction about our aircraft which, at a minimum, don’t lag behind Western ones. We ‘procrastinate’ with Armata and its offshoots, comparing it to the best models of Western armies.  We discuss the advantages of our new missiles and systems.”

“And now, today exactly, heard here and there are announcements by various government bureaucrats and army chiefs about delaying arms procurement to another time, so to speak.  About delayed launches of ships.  About adjusting the schedule for delivering something to the troops.”

“So what’s with this.  Why is this happening?  Recently all officials, including the president and the prime minister, together talked about fulfilling the defense order almost as a matter of honor for Russia. Don’t many remember Putin’s April statement about the unconditional fulfillment of the state defense order?  And can’t many say exactly how much it is fulfilled and whether it is fulfilled?”

“The entire thing is that the necessary money is not in the budget!  The crisis, which we are ‘successfully overcoming,’ still has us in its claws.  We’ve talked a lot about the fact that sanctions hurt Europe and the USA, and how they [sanctions] are going to benefit us.  We are developing, increasing output, winning markets…  On any analytical program on our TV it’s possible to hear a full assortment of such pronouncements.”

“The support of the president and the real successes of our servicemen in Syria inspire hope in us that all this will come true.  The government will find money both for us and for the army.  Industry will begin to work not only well, but both quickly and cheaply.  New ideas of [arms] designers will be realized in the shortest time.”

“Prime Minister Medvedev’s decision, signed on 5 September, to adjust the GOZ for 2016 was only the first call.  It is understood that today there’s no clear data on this question.  Naturally, it’s possible to suppose that defense sector enterprises won’t receive some part of the promised resources.  And this, in its turn, means that GOZ plans for next year will be ruined.  A snowball of corrections will accumulate gradually from the details.”

“And not hiding the fact, by the way, does him credit, Putin himself already talks about the fact that by 2018 our army will be rearmed at 70%, and the state order will be reduced.  And he talks about what is needed to take the place of the defense order, but not pots and pans.”

“From the one side, one who is forewarned is forearmed.  But from the other?  It’s hard to guess with what enterprises will be occupied, with a miracle which drags them out of the debt hole.  And where will workers who turn out to be redundant go at this moment?  But we have already passed through such a scenario.”

“However, certain specifics have already ‘hatched.’ The Ministry of Defense plans to make the famous “Armata” the main battle tank by 2020.  With this aim, the purchase of more than 2,000 of such vehicles for military units has been proposed. According to the tank producer’s data, the order was already for 2,300 tanks.  But not long ago on the Ministry of Defense website an altogether different figure appeared: there is a plan to buy up to 70 “Armatas” in 2017-2019.”

“Naturally, the reasons for changing the [state defense] order aren’t named.  I think over some time versions about some shortcomings, about the modernization of what we already have, [and] some others.  Actually, the reason is banal.  They are cutting the military budget and will cut it.  It’s completely logical, you can’t take money from the shelf if there’s nothing on it.  So folks say.”

“The navy’s situation looks even more confused.  Even the blind see the necessity for modernizing the Russian fleet.  Ships, just like people, age, lose their striking power, and turn into respected veterans.  But we need warriors.  And these ‘warriors’ need to be built.  A lot of them.  The Soviet legacy can no longer guarantee a worthy answer to an aggressor.”

“It seems as though construction began from 2007.  Missile boats, small ships and even submarines began to leave the docks for testing.  New submarines, frigates were laid down at the wharves.  The rebirth had begun.”

“Our excessive belief in the ‘love and friendship of fraternal peoples’ became the first ‘obstacle.’  When construction was stopped by the Ukrainian side [sic].  They stopped supplying Ukrainian engines to us.  Actually, the question of ‘their’ components in combat equipment and armaments arose already in the last century.  And they successfully solved it in the USSR.  But in Russia they put it off ‘for later.'”

“Then the ‘rockslide’ of announcements by military and government bureaucrats on cutbacks in the needs of the fleet began.  I remind the readers about the project 11711 BDK [i.e. an LST].  A large assault ship which was needed to replace Soviet BDKs.  In 2004, a requirement for 6 of such ships for the navy was announced.  Then they decided to review the project.”

“Today we see two ships.  Two instead of six.  It’s been decided to shut down the project.  ‘Ivan Gren’ and ‘Petr Morgunov’ — that’s all that the fleet will receive after testing.”

“It’s possible to talk endlessly about the submarine fleet.  About new missile submarines.  But even they, alas, for the most part remain only projects.  The construction of boats of such a class is a very expensive undertaking.  And this means still unmanageable.”

“Even the Rocket Troops of Strategic Designation [RVSN] will not receive everything promised.  Although, for all times the priority was always right on these troops.  No, ‘Yars’ and similar systems will be supplied.  But land-based ‘Sarmat’ systems most probably won’t be deployed to the original plan.”

“I recall it was planned to replace by 2020 the already aged ‘Voyevod’ missiles (known to most by the NATO ‘nickname’ ‘Satan’) which have served out their time.  Today it’s understood that these plans aren’t being fulfilled.  Today already.  In the best case, such a replacement will occur in 2021.  Or a little later.”

“So where’s the way out of the situation which has been created?  Is there one generally?  I believe there is.  And today the way out is to use those developments which exist and have already been tested in combat.”

“When the VDV [Airborne Troops] commander announced the establishment of tank and BMP companies in units subordinate to him, what kind of vehicles did he mention?  He talked about T-72B3 tanks and BMP-2s.  I hope no one will chide General Shamanov for stupidity and a lack of desire to have the most powerful and modern weaponry?  So why exactly these vehicles?”

“Simply because both the tank and the combat vehicle have huge modernization potential.  And in the coming decades this potential will be used.  And mass serial production has reduced the cost of this equipment in the extreme.  And long use in the troops has revealed practically all ‘minuses’ of these vehicles.”

“Modernization of the T-72 to the T-72B3 level costs a bit more than 50 million rubles.  In other words, for one ‘Armata’ we can have several T-72B3s right away.   Naturally, the T-90 would be more desirable, but it is cost prohibitive.”

“It’s exactly the same situation with the famous T-50 system.  The aircraft is ready. Moreover, it’s been put in series production.  And in the plans it’s supposed to be the main fighter.  This ‘hulk’ looks impressive in our plans.  In 2020 we should already have 60 fighters in the force.  And in the future their production should increase.”

“In reality we’ll get exactly the same as ‘Armata.’  We want to do a ‘split,’ but our britches get in the way…  It will be good if we have a regiment of such aircraft in 2020.”

“But we have the fully combat capable, even compared to the American F-22 and F-35, Su-30MK.  And, according to the assertions of its builders, the potential of these aircraft is far from used up.”

“And what’s the result?  As a result, we see the famous ‘half-full glass.’  Part of the readers are now sighing sadly.  The army is ‘penned up.’  Another part thinks that the Russian Army, in the shape which we have it, can really confront the enemy.  The third part giggles happily.  They have failed to modernize.  Oafs.  We told them…”

“It’s not for nothing that I called this article by a Stalinist name.  This isn’t a greatness mania or a wish to show off knowledge of the works of the ‘leader of peoples.’  We truly have become a little ‘dizzy.’  Not everything has succeeded right away.”

“I generally believe that the right way to move is walking or running.  But not ‘leapfrog’ jumps.  Movement should be measured and in one direction.  Therefore, the modernization of the army should continue.  Continue, no matter what.  But not by busting a gut.”

“I would be wary of talking about our weapons and combat equipment like junk.  Particularly after what this equipment showed in Syrian battles.  Just the same to talk also about the superiority of Western armies in some components.  But if we view the army like the world, a ‘gap’ will always be found.  But this gap is always ‘plugged’ by something else.”

“The dizziness quickly passes if you leave the centrifuge or wheel.  If, of course, you have a properly functioning outer office staff.  I think healthy people serve in our Ministry of Defense.”

“But just one moment.  No one needs to have the fact that our bureaucrats are not simply greedily stealing everything possible explained to them.  It’s a rare day when the Internet and television don’t report about the latest stuff that’s ‘flown off.'”

“It’s necessary to stop those who ‘have become dizzy with success.’  With the methods of the person I quoted.  Severe and long-term.  Take that Zakharchenko.  9 billion rubles — that’s a great deal.  The T-90, for example, today costs about 120 million rubles.  That is 75 tanks laid in the brute’s hidey-holes.  Two battalions.  Not bad…”

“And this is one of the deputies…”

[Colonel Dmitriy Zakharchenko is, or was, deputy chief of Directorate T in the MVD’s Main Directorate of Economic Security and Countering Corruption until his arrest in early September.  The foreign currency equivalent of 8 billion rubles was found in his apartment.  See RIA Novosti for an early report on his case.]

“And if they search his relatives, it’s certain it would be possible to scrape together a brigade easily and without effort.”

“‘Effective managers’ of our times have shown that they can only steal effectively.  From the budget just the same as from the GOZ.”

“It’s necessary to change the situation really at the root.  And tear this root with a crunch and snap on the image and likeness of ’37.  With the confiscation of everything that’s possible.”

“Only then will the state defense order be fulfilled on time and without problems.  And the president won’t have to shuffle, talking about how 70 percent is sufficient so we should relax.”

“So isn’t it?”

Year of Accomplishments

Krasnaya zvezda called this story “Year of Accomplishments,” but might have called it Day of Military Acceptance . . . .

President and Supreme CINC Vladimir Putin visited the NTsUO for the first time on 18 December.  He familiarized himself with the new national command center and its capabilities for accommodating and coordinating the work of the military and other high-level government organs.

Putin Touring the NTsUO (photo: Mil.ru)

Putin Touring the NTsUO (photo: Mil.ru)

Putin’s seat is in the upper balcony opposite the big screens.

Another View of the NTsUO (photo: Mil.ru)

Another View of the NTsUO (photo: Mil.ru)

The first real order of business, however, was reviewing fulfillment of the State Defense Order in 2014.

Recall this year the political leadership and Defense Ministry launched a quarterly exercise of enumerating what was procured the previous three months on what they call the Day of Military Acceptance (День военной приёмки).

It’s almost as though the Kremlin is irritated someone has audaciously suggested that Russian output of new armaments and other military equipment hasn’t been especially impressive in years past.  

The Supreme CINC said:

“At recent meetings in Sochi we already noted that practically all Gosoboronzakaz tasks for this year have been fulfilled, and its general volume increased by almost half in comparison with 2013.”

Putin went on to say that 4,500 weapons, military, and special equipment were acquired in 2014, including:

  • 142 aircraft;
  • 135 helicopters;
  • 4 submarines;
  • 15 surface ships and boats / craft;
  • 19 SAM systems;
  • 590 tanks and BMPs;
  • 3 Yars ICBM regiments;
  • 7 modernized Tu-160 and Tu-95MS bombers.

It isn’t clear which four submarines the Russian president means.  Probably the third Borey-class (proyekt 955A) SSBN Vladimir Monomakh and Improved Kilo-class (proyekt 636.3) diesel-electric Novorossiysk.  But Borey unit 2 Aleksandr Nevskiy was accepted late last year.  And it would be a stretch to accept the next two Improved Kilos before January.

KZ then turns to Defense Minister Sergey Shoygu and his words before an expanded MOD collegium in the NTsUO.

He said Russian strategic forces received 38 intercontinental ballistic missiles in 2014 — 16 ICBMs and 22 SLBMs — most of the latter placed on Borey unit 1 Yuriy Dolgorukiy.  He claimed that 56 percent of Russia’s strategic weapons are now “modern.”

Shoygu said Russia’s 14 UAV sub-units (companies or platoons) received 179 UAVs.

He expounded a bit on the Supreme CINC:

“The Ground Troops were supplied with two brigade sets of operational-tactical missile systems ‘Iskander-M,’ 294 modernized tanks, 296 other armored combat vehicles, two ‘S-300V4’ Ground Troops air defense systems, almost 5 thousand vehicles.”

“The Air Forces received 142 aircraft, of which 53 are multipurpose Su-30 and Su-35S aircraft systems, 16 Su-34, 28 transport and training aircraft of various types, 18 modernized fighter-interceptors MiG-31BM, 135 helicopters, including 46 combat and 72 transports.”

Mil.ru posted the videos and texts presented to Putin and the collegium.  They address all of the priority tasks of the military this year.  One, of course, is “Equipping with Modern Armaments and Military Equipment.”  It provides the following data (different from Putin and Shoygu):

  • 294 modernized T-72B3;
  • 7 S-400 SAM systems;
  • Yasen-class SSN Severodvinsk (accepted in 2013?!@#) ;
  • Novorossiysk;
  • 5 surface ships and 10 boats / craft of various classes.

This account mentions that the serviceability of weapons and equipment rose from 80 to 85 percent.

Accepting submarines at year’s end seems to enable Moscow to claim that they were accepted, or to count them as “produced,” in two years rather than just one.

All in all, more weapons and equipment were acquired in 2014 and 2013 than in 2012, 2011, etc.  But it’s a little like comparing something and nothing. Serious procurement on a fairly wide front didn’t begin until after 2012.

What’s Been Bought

It’s usually challenging to discover what the Russian military bought in any given year.  But it’s somewhat easier now that procurement is increasing.

Shoygu in the Videoconference (photo: Mil.ru)

Shoygu in the Videoconference (photo: Mil.ru)

On January 14, Defense Minister Sergey Shoygu reviewed 2013 procurement in a year-opening videoconference.

He indicated that GOZ-2013 was fulfilled at 96 percent for RDT&E, 93 percent for armament and military equipment purchases, and 91 percent for repairs and servicing.  Purchases increased by 70 percent over 2012.

Beyond that no details.

If Shoygu’s scant and statistical, Topwar.ru’s Kirill Ryabov rescues us.

Ryabov says GOZ-2013 amounted to 1.45 trillion rubles, two-thirds more than 2012.  Roughly the same accounting as Shoygu’s 70 percent.  But Ryabov’s also tracked what was bought.  He doesn’t give full citations for his data.  But it’s a working list.

He starts with air defense:

  • 6 S-400 SAM battalions.
  • 6 Pantsir-S1 missile-gun systems (ZRPKs).
  • 24 Tor-M1-2U SAMs (SA-15 upgrade).
  • 12 Tunguska ZRPKs.

More than 300 combat and support vehicles for the Ground Troops, including:

  • 2 Iskander-M SSM brigades (107th in the Eastern and 1st in the Southern MD).
  • 54 BTR-82A APCs.
  • 12 BMO-T flamethrowers.
  • 90 Tornado and Grad MLRS.
  • 20 Khosta SP guns.
  • 40 Msta-S SP howitzers.
  • 16 Zoopark counterbattery radars.
  • 16 Leyer-2 EW systems.
  • 10 Redut-2US communications systems.

And reportedly more than 5,200 other vehicles and automobiles.

It gets murkier from here on . . . .

For the Air Forces, Ryabov indicates OAK, in 2013, got orders for 60 military aircraft for 62 billion rubles.  Only 35 were reportedly ordered in 2012.

  • 2008 contract for 36 [sic?] Su-34 fighter-bombers was completed in 2013, and Sukhoy started filling the 2012 contract for 92 more.
  • 12 Su-35S were delivered ahead of schedule.
  • 8 Su-30SM, 12 Yak-130 trainers, and an An-140-100 transport were delivered or will be soon (?).

For helicopters:

  • 19 Ka-52 / Alligator.
  • 8 Mi-28N / Night Hunter.
  • 3 Mi-35M.
  • 3 Mi-26.
  • 5 Mi-8AMTSh.
  • 7 Mi-8 (jamming variants).

For the Navy, 12 large and 43 small ships were reportedly launched.  Thirty-five ships and craft of various types were commissioned into the fleet.

Anything more specific requires additional investigation. 

Two Borey-class SSBNs (which can’t perform their primary mission) were accepted for service.  Steregushchiy-class (proyekt 20380) FFL Boykiy joined the Baltic Fleet.

Steregushchiy-class FFL Boykiy (photo: Topwar.ru)

Steregushchiy-class FFL Boykiy (photo: Topwar.ru)

As if on cue, Deputy Defense Minister (armaments chief) Yuriy Borisov held a press-conference on January 16 to discuss last year’s GOZ.

According to him, the Su-35S has not been accepted, but it’s about to be.  Initial deliveries aren’t far behind.  More than 2,200 armored vehicles and other transport means were purchased, and 1,700 modernized.  He said the share of modern armor has reached 24 percent.

The year just past definitely continued the trend of more military procurement from 2012.  But is it enough to get the volume of weapons systems Russia’s military and political leadership wants before 2020?

Remember what procurement lists floated in 2010 looked like:

  • 56 S-400 “units.”
  • 10 S-500 systems.
  • 600 aircraft.
  • 1,000 helicopters.
  • Bulava SLBMs.
  • 20 submarines.
  • 15 frigates.
  • 35 corvettes like Boykiy.
  • Mistral-class amphibious ships.
  • Several new ICBMs.

Even relatively healthy acquisition like GOZ-2013 won’t get to these numbers.

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.”