(RIA Novosti) -Russia's government is planning to allocate 300 billion rubles (over $1 bln) for defense orders in 2007, the defense minister said Monday.
"The current Defense Ministry orders, without logistics expenditures total 237 bln rubles," said Sergei Ivanov, who is also deputy prime minister. "Next year, the government is planning to allocate more than 300 billion rubles."
The Federal Service for Defense Contracts was established in 2003 and has 250 employees, Ivanov said introducing the new head of the service, Sergei Mayev, reports Trend.
"The service is young but it has allowed us to save significant funds on logistics," the minister said.
Vladislav Putilin, first deputy head of the newly created state defense committee, said in May that spending on weapons procurement in 2007 would increase 22% year on year to 145 bln rubles ($5.35 bln) and on repairs of military equipment by 15.7% to 60 bln rubles ($2.2 bln).