Russia Promises $8.5 Billion To Defense Industry To Ensure Timely Deliveries

Russian Prime Minister Dmitry Medvedev announced yesterday that it will provide $8.5 billion in state guarantees to the defense industry.

This announcement comes in accordance with the national procurement program, to ensure weapons delivery on time.

“The resolution provides for the allocation of 40 state guarantees worth 265 billion rubles ($8.5 billion) 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, stressing on the beneficial effects it would have on the economy as a whole.

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.