19:02 GMT +318 July 2018
Listen Live
    Business

    Defense Industry to Get $8.5 Bln State Guarantees – Medvedev

    Business
    Get short URL
    0 10

    The Russian government will provide 265 billion rubles ($8.5 billion) in state guarantees to defense industry enterprises this year, to ensure weapons are delivered on time in accordance with the national procurement program, Prime Minister Dmitry Medvedev said on Monday.

    GORKI, May 27 (RIA Novosti) – The Russian government will provide 265 billion rubles ($8.5 billion) in state guarantees to defense industry enterprises this year, to ensure weapons are delivered on time in accordance with the national procurement program, Prime Minister Dmitry Medvedev said on Monday.

    “The resolution [signed by Medvedev] provides for the allocation of 40 state guarantees worth 265 billion rubles for loans which will be granted to 26 companies from the defense and industrial complex,” Medvedev said.

    The provision of state guarantees is the first this year, Medvedev said, and stressed the beneficial effects it would have on the economy as a whole.

    “Everything invested in the defense industry has an influence on industry. Actually, the defense sector helps boost adjacent industries,” he said.

    State guarantees allow defense enterprises to obtain loans at a time when they face a shortage of working capital and have no other sources of financing, Medvedev said.

    Over a half of the state loan guarantees for defense producers this year will go to shipbuilders and developers of intercontinental ballistic missiles, according to the government resolution.

    The United Shipbuilding Corporation, which produces warships and submarines for the Navy, will get three guarantees worth 62.19 billion rubles and the Sevmash shipyard, the manufacturer of Borei- and Yasen-class submarines, will be given two guarantees worth 25.19 billion rubles, the resolution says.

    The Moscow Institute of Thermal Technology, which develops intercontinental ballistic missiles, will get 45.95 billion rubles in two state guarantees.

    KBM, which developed the Iskander tactical missile launcher (SS-26 Stone), will get a 12 billion ruble guarantee while aircraft manufacturer Irkut can count on two state guarantees worth 12.59 billion rubles.

    Almaz-Antei, which produces the S-300 (SA-10 Grumble) and S-400 (S-21 Growler) air defense systems, will receive two state guarantees worth 10.27 billion rubles.

    The guarantees will be issued for loans with a maturity of up to five years.

    Adds paras 6-11

     

    Tags:
    Dmitry Medvedev
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment