http://en.rian.ru/russia/20090216/120167623.html

*No cuts to Russian defense contracts planned for 2009*

*MOSCOW*, February 16 (RIA Novosti) - *State defense contracts* will not be
subject to cuts this year despite the ongoing financial crisis, *Russia's
deputy defense minister* said on Monday.

"State arms and materiel orders will be fulfilled in the volumes planned in
the budget," said *Lyubov Kudelina*.

Kudelina said the Defense Ministry would transfer 65 billion rubles ($1.9
billion), to producers by the end of this week. She also said the ministry
would transfer 35% of military contract payments in the first quarter of
2009.

The government is to disburse a total of 1.3 trillion rubles ($37 billion)
to defense contractors this year.

The state arms production budget for 2009-11 has been approved at 4 trillion
rubles ($115 billion).

Prime Minister Vladimir Putin said last week that Russia's major aircraft
maker, MiG Corp., would receive 11 billion rubles ($308 million) in the
first quarter of the year as part of a 17.3 billion-ruble ($485 million)
state defense contract.

He also said the company had losses of some 11 billion rubles in 2008, and
announced that he had signed a resolution allocating a further 15 billion
rubles ($417 million) in federal budget funds to the corporation.

Last year, MiG, along with other "strategic" companies, was promised funding
through the government's anti-crisis package, specifically firm production
orders from the Russian Air Force.


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