What are the problems of Russian MIC with the transition to "military rails": Defense Express Analysis

Russia is trying to expand the production of weapons and equipment, but is faced with a number of problems to stay on "military rails", analysts say. On July 30, 2024, Russian President Vladimir Putin met with the head of Rostech Corporation Sergiy Chemezov, which discussed the results of the company for 2023 and the current year. "Rostech", as a major manufacturer of weapons in Russia, is difficult with the transition to "military rails". About it reports Defense Express.

According to the Russian media, the Russian State Corporation Rostech reported on an increase in consolidated revenue by 34% to 2. 4 trillion rubles in 2023, with a net profit of 60. 1 billion rubles. In 2023, Rostekh invested 527 billion rubles in production development, which is more than twice the rates of 2022. At the same time, the share of civil products in total production decreased from 44% to 35%.

Chemezov stressed that significant investments were aimed at expanding the production of weapons and equipment, including the modernization of gunpowder production. The volume of production and repair of light armored equipment has increased three times, tanks - 3. 5 times, and ammunition production - ten times. However, such "victorious" indicators hide serious problems, emphasize analysts.

The increase in the volume of repair of equipment indicates the use of old equipment or equipment damaged on the battlefield. The lack of resources for the modernization of powder plants also calls doubt on the statement about a significant increase in ammunition production. During the meeting, Putin repeatedly clarified the numbers, which indicates some doubts about Chemezov's statements, analysts write. The most acute problem is the personnel issue.

The head of Rostekh DK reported that in 2024 the staff of the corporation is planned to increase by 70 thousand employees, but the average salary will be only 88 thousand rubles a month. The Kremlin created the conditions under which Russians are more profitable to go to war, where they are promised much higher payments than working in the MIC. This significantly complicates the recruitment of additional staff for Russia's military-industrial complex.