Monday, February 9, 2015

Rogozin worried about metal – BBC

Rogozin worried about metal – BBC

Defense bloc of the government attended to the increase in metal prices, as well as components for weapons and military equipment. Deputy Prime Minister Dmitry Rogozin even offered to use state reserves to bring down prices. Experts believe that it could trigger the growth of corruption and propose to introduce prohibitive duties on the export of strategic metals.

At the meeting of the government on Monday Deputy Prime Minister Dmitry Rogozin said that because of rising prices under threatened plans were re Armed Forces of Russia.

«The negative impact of rising prices for the products of cooperation will lead to a sharp decline in profitability performance of the contracted jobs, and in some cases – a loss of umbrella organizations of the defense industry. Not to mention the increase in the cost of armaments, military and special equipment, “- Rogozin said.

To avoid this, Rogozin proposes to introduce state regulation of prices for all products that are supplied by the state defense order. If necessary, he volunteered to form a detailed list of goods subject to such regulation. In addition, the Deputy Prime Minister considers it necessary to extend the quota and reservation mechanism used in the oil industry in the strategically important raw materials, such as metals.

As one of the drastic measures cost containment Rogozin offered to borrow a raw material in the vaults of the state where they are stored in case of war, as well as to clarify the range of stored reserves and the required number of.

«The capacity Rosrezerva on the use of tangible assets for guaranteed performance government programs and jobs defense contracts with the current political and economic situation “- the official said.

A source in the military-industrial complex said” Gazeta.ru “that Rogozin remarks caused a sharp increase in prices for raw materials, primarily for metals.

«Metallurgists from January 1, raised the price by 60%. At the same time, we have become as an explanation to show trading on the London Stock Exchange. But our position is this: if you want to earn on the stock exchange, go to the stock exchange, trade with us is not necessary. Therefore, if such a policy continues, we will no longer purchase on these inflated prices, “- said the” Gazety.Ru ».

He added that it is primarily about the ferrous and non-ferrous metals, which are used for the production of weapons and military equipment. According to a representative of the defense industry, the objective reasons for the rise in prices to the extent not.

The first deputy chairman of the Duma Committee on Industry Vladimir Gutenev believes that the use of reserves to curb price is extremely dangerous, “These measures do not work, on the contrary, they lead to corruption, baring reserves, and then have to lay them at market prices. If you need to adjust the prices of raw materials and metals, it has a number of tools: it grants from the state, and compensation of interest rates, and many others. If steelmakers will raise prices by looking at the London Stock Exchange, you can enter a prohibitive duty on exports, “- said Gutenev. According to him, the duties the government is able to introduce just a couple of days.

At the same time, he stressed that now, with the growth of sanctions is necessary to create a long-term supply of materials and components, primarily electrons, which have to be purchased abroad.

As told “Gazeta.ru” a member of the Public Council of the Military-Industrial Commission under the Government of the Russian Federation Viktor Murakhovski, resorted to the use of state reserves in the past, but only when it came to rare materials whose production cycle exceeds Contract completion date.

«This is not the first time we have such a place before. Production cycle of some materials, such as are used in the electronics space exceeds the terms of the Order, so often taken out of storage, and when the production cycle ends – return it there. Such materials are usually in other products are not used, “- said Murakhovski.

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