Tag Archives: GPV 2011-2020

Re-Industrializing for Military Modernization

Golts

Golts

It’s been Golts overkill.  Despite the risk of overdosing, he has an article in Ogonek from 25 September which merits attention.

One could do much, much worse than to pick him, if you could read only one commentator.

Golts tries to explain why Russia’s OPK, its defense sector, has failed.

He gives prominent examples of defense industrial shortcomings including the most recent Bulava and Proton-M failures.  Interestingly, he says all serially produced Bulava SLBMs are being returned to Votkinsk for inspection.

Calling the list of failures “endless,” he concludes, “Production standards are falling uncontrollably not only in the space sector.”  He continues:

“The thing is not only particular failures.  Experts from the military economics laboratory of the Gaydar Institute suggest that defense order 2013 will be disrupted just as it was in previous years.  According to their data, defense order 2012 was revised and lowered at least three times.  And still it was unfulfilled by approximately 20 percent.  Accounting Chamber auditor Aleksandr Piskunov was extremely forthright in the Duma hearings:  ‘Almost one hundred percent fulfillment of state defense orders for the last 20 years hasn’t interfered with the failure of all armaments programs, with fulfilling them at 30, 40, 50 percent.'”

You may recall reading Piskunov here at the start of April.

Then, Golts notes, Putin himself cast doubt on the OPK’s ability to fulfill the current GPV.  He recalls the late July meeting when Putin indicated he’d entertain slipping ships and submarines due after 2015 into the next GPV (to 2025), so that there aren’t more “failures.”

Putin said work should be organized so producers’ capabilities coincide with the allocated funding.  Money, he said, shouldn’t be hung up in accounts [and stolen] while we wait for ships.  Golts reads this as Putin recognizing that the state of domestic industry is such that it can’t assimilate the gigantic sums allocated to it.

The defense sector has structural problems that endless calls for mobilization to face an aggressive West can’t resolve (i.e. a workforce that’s almost reached retirement age, continued aging of basic production equipment).

Golts again turns to Piskunov, who said only 20 percent of defense enterprises approach world standards in terms of technical equipment, and nearly half are in such a poor state that resurrecting them is senseless — it would be better to start from a “clean slate.”

But Golts focuses on poor coordination and cooperation among enterprises, government customers, and sub-contractors.  He turns to the familiar case of Bulava — 650 different enterprises reportedly have a hand in turning out this missile.

Most damning, Golts compares today’s “so-called united state corporations” unfavorably to Soviet-era defense industry ministries.  Ineffective and bureaucratized, the latter still managed to manufacture massive numbers of weapons.  And Gosplan matched prices for products and production by fiat.  Today’s goskorporatsii can’t.

There’s another important difference, Golts points out.  All Soviet “civilian” industries also produced arms, or parts for them.  Average citizens buying civilian goods helped finance military production with their purchases.

But the largest part of this permanently mobilized industrial system died in the 1990s and surviving parts retooled for other production.  Many in the latter category no longer wanted part of the defense order which would only make them less competitive in their main business.

Then Golts concludes:

“But it’s impossible to begin serial production of armaments without serial production of components.”

Today’s OPK chiefs don’t have the talents of some of Stalin’s industrial commissars, says Golts.  They are, however, good at blaming ex-Defense Minister Serdyukov for “destroying” the voyenpred system.

Golts really gets to it here:

“In reality producers of complex military equipment have a choice.  They can either make components in final assembly plants in a semi-artisan fashion.  Or they can buy them on the side, risking getting crap made in some tent.  It stands to reason the problem isn’t confined to recreating the military acceptance office in enterprises.  Complex chains of sub-contractors have to be established.  And, we note, even with money — this isn’t a banal task.  We’re really talking about new industrialization, the construction of new enterprises.  But just what kind?”

Golts recommends a policy of targeted and specialized re-industrialization.  Because of the expense, he says build specialized component factories to support production of critical systems where Russia is decades behind developed states — communications, reconnaissance, UAVs, precision weapons.  Russia will have to prioritize and Golts doesn’t see tanks, ships, and heavy ICBMs as priorities.  Those who pick the priorities have to withstand attacks from lobbyists for these weapons.

Golts believes Deputy Prime Minister and OPK tsar Dmitriy Rogozin knows the bind he’s in . . . and that’s why he says put off the beginning of serial production of many armaments until the next armaments program (2016-2025).

Golts concludes:

“Generally, the rearmament of the Russian Army is entering a new cycle.  Without any kind of results.”

GPV 2016-2025

Dmitriy Rogozin

Dmitriy Rogozin

Last week Rossiyskaya gazeta’s Sergey Ptichkin reviewed Dmitriy Rogozin’s comments on the formation of the next state armaments program, GPV 2016-2025.  Rogozin is Deputy Prime Minister and Chairman of the Military-Industrial Commission (VPK) attached to the RF Government.

Rogozin indicated the next GPV will be very different from the current one, according to Ptichkin.

Rogozin said fulfillment of GPV 2016-2025 will be tracked with a new automated system GAS-GOZ, or the State Automated System of the State Defense Order (or perhaps State Automated Defense Order System?).  It’s supposed to allow for “quickly reacting to the smallest failures” in the GOZ.

The Future Research Fund (FPI or ФПИ, the emerging Russian DARPA) will effectively develop the most promising military and civilian technologies in 2016-2025.

Systems now in RDT&E are supposed to be in serial production.  There may be some weapons based on “new physical principles.”

The PAK DA, a new strategic bomber, should be developed and produced during this GPV.  The fifth generation fighter, PAK FA, will be in production.

There will be new missiles, from operational-tactical to strategic, hypersonic ones too.

It’s “not excluded” that aviation-carrying formations (aircraft carriers) will appear in the Navy.

Rogozin said the “active inclusion of the Military-Industrial Commission in developing the future GPV” is a first, and will allow for avoiding “many problems and collisions” along the way.

Rogozin criticized the “former Defense Ministry leadership” for refusing to accept the BTR-90, not ordering the BMD-4, not taking delivery of assembled BMP-3s, and not testing Obyekt 195 (a future tank) after GPV 2011-2020 was already finalized.  Instead, rushed orders for developing and producing the wheeled Bumerang, light tracked Kurganets-25, and heavy tracked Armata ensued. 

These armored vehicles are supposed to enter the force in a year or two, but this seems unlikely.  They will probably become part of GPV 2016-2025.

Rogozin promised the next GPV will be the most balanced, most well-calculated, most innovative, and, at the same time, most realistic.

It’s very early to talk about the next GPV.  Traditionally, this is a sign things aren’t going well in the GOZ or the current GPV.  The overlap in consecutive GPVs makes it difficult (perhaps impossible) for anyone — citizens, lawmakers, bureaucrats, military men, and, defense industrialists — to understand exactly what’s been procured (or not) under each GPV.  This state of confusion probably serves the interests of some of the same  groups.  Rogozin makes it sound as if defense industry, rather than the military, will drive the train this time around.

Difficult Course to a Grand Fleet

Konstantin Bogdanov sees reason for pessimism when looking at the course ahead for rebuilding Russia’s fleet.  Writing in Friday’s Nezavisimoye voyennoye obozreniye, he says, despite an intention to spend 4.7 trillion rubles of the ten-year GPV on the Navy, there are technical challenges, clearly impractical schemes, and failures in what he calls the “organization-financial plan” ahead. 

Bogdanov provides us a handy review of the state of Russian shipbuilding.

He points first to OSK’s insistence on seeing new aircraft carriers (with nuclear-powered destroyers in their battle groups) on the Russian Navy’s horizon.  But Defense Minister Serdyukov has only a cold rebuff for the idea.  Early R&D into what a new carrier might look like is as far as he’s being willing to go.  It was made pretty clear that a carrier isn’t part of this GPV.

Bogdanov says OSK may be looking for work for the New-Admiralty Wharves it sees on Kotlin Island in the future.  The 30- to 60-billion-ruble shipyard could be ready in 2016.  An aircraft carrier project would help launch this idea.

Then Bogdanov turns to the Navy’s more immediate needs — frigates and corvettes.  

Proyekt 22350 frigates are needed by tens, if not 30, or even 40, of them.  But Northern Wharf is having trouble building them.  Lead unit Admiral of the Fleet of the Soviet Union Gorshkov was five years in construction, and its underway testing isn’t complete.  Fleet Admiral Kasatonov was laid down just about two years ago.  Its SAM system, Poliment-Redut with 9M96 missiles isn’t ready, and will have to be fitted right to finished frigates.  But Bogdanov sees the frigates’ VLS — the Multipurpose Ship Fire System (UKSK or УКСК) as a positive step.  It could fire antiship, antisubmarine, land-attack cruise missiles, torpedoes, and possibly SAMs.

When proyekt 22350 didn’t come along quickly, Bogdanov says, the Navy went for its own proyekt 11356M frigates like those being built for India.  But, he notes, Baltic Shipbuilding Plant “Yantar” in Kaliningrad isn’t having an easy time constructing them for its Indian and Russian customers.  There are delays in the Indian units, but Admiral Grigorovich and Admiral Essen have been laid down for Russia, and Admiral Makarov should join them soon.  The contract for a second batch of three was just signed.  They’re supposed to be “localized,” but may actually be more like the Indian versions.  They’re slightly cheaper than the proyekt 22350 at 10 billion vs. 16 billion rubles per ship.

Northern Wharf has the order for nine proyekt 20380 Steregushchiy-class corvettes (with the proyekt 22350 frigates this comes to more than 220 billion rubles).  Soobrazitelnyy (proyekt 20381) began sea trials this year, Boykiy was launched, Stoykiy is under construction, and Provornyy (proyekt 20385) was laid down.  Sovershennyy (proyekt 20380) remains under construction at Komsomolsk-na-Amure.  Bogdanov says the proyekt 20385 ships will have an eight-cell UKSK.

Bogdanov notes, however, that Northern Wharf’s production won’t be steady until its ownership issue is finally resolved.  If OSK takes over, this could have a good or bad effect on fulfilling defense orders, but the current financial questions around Northern Wharf are even worse.

Turning to submarines, Bogdanov believes the situation is more transparent, but there are still questions.

The SSBN picture is pretty clear.  Proyekt 955 Borey-class SSBNs finally have a missile that looks like it works.  Yuriy Dolgorukiy has fired it, and Aleksandr Nevskiy might this year.  Vladimir Monomakh is under construction, and they’re preparing production materials for Saint Nikolay.

The problem, he notes, is units 1 and 2 used sections and components of proyekt 971 and 949A submarines never built.  Units 3 and 4 will be built from scratch, and it’s too early to say how this will be reflected in their cost.  Bogdanov concludes another battle over inflated prices awaits, and there is, of course, still no 2011 contract with Sevmash.

It’s less clear with the multipurpose proyekt 885, Yasen-class, of which the Navy wants ten by 2020.  But these boats have been the focus of the Defense Ministry’s familiar complaint about unjustified price increases.  Unit 1 Severodvinsk was built from materials and resources on hand, and its rising price was frozen at 47 billion rubles in 2005.  The Defense Ministry says Sevmash wants 112 billion for unit 2 Kazan

Bogdanov thinks it’s hard to tell who’s justified here.  There is structural industrial inflation, and a higher costs could be the result of the frozen handover price on Severodvinsk.

Bogdanov mentions the thought given to cheaper attack boats like the Victor III or Akula, or proyekt 957 Kedr which never left the design phase.  The Yasen is intended to replace Soviet-era SSNs and SSGNs, but Bogdanov thinks it’s too complex and expensive to be built in the numbers Russia may need.  Twenty years ago the Russian Navy was planning for not less than 30 [sized of course against the U.S. fleet], and currently it has not more than 30 SSNs and SSGNs, and this is considered insufficient. 

Despite the uncertainty above, Bogdanov says one still hears talk about the need to develop a fifth generation submarine, but it’s unknown if there will be any development work on one.
 

Keep Close to Shore

“In essence, after many years of interruption, we are beginning a large shipbuilding program:  by 2020, 4.7 trillion rubles will be directed at reequipping Russia’s Navy.  The aim is clear — it is creating a modern fleet, capable of carrying out all missions — from nuclear deterrence to presence on the world’s oceans, to the security of our economic interests and Russia’s bioresources.”

That’s how Prime Minister Putin put it at Monday’s party conference in Cherepovets.  But Nezavisimaya gazeta and Vedomosti had sharp and pithy criticism for him and for the naval construction program.

NG concluded military voters might be cheered up, but the paper wants to know what the naval construction program is exactly.  Is it the one that’s buying Mistrals that may not be needed from France?  With what and how will the Navy be equipped?

Apparently not aircraft carriers.  And not other large warships either.  They’re built in Russia, but for sale to India and China.  NG continues:

“Our own fleet is being populated piecemeal.  And, as a rule, we’re talking about a mosquito fleet.  Which, of course, is not capable of completing missions ‘from nuclear deterrence to presence on the world’s oceans.'”

The editorial cites former Black Sea Fleet Commander Vladimir Komoyedov who complains about the retirement of the Kara-class CG Ochakov, and claims nothing new is being developed.  It quotes Aleksandr Pokrovskiy who says the Baltic Fleet’s new Steregushchiy and Soobrazitelnyy corvettes are not participating in exercises because they’re only 50 percent combat ready.

So, asks NG, what kind of modern fleet are we talking about?  About past shipbuilding programs, it says:

“They were concrete and understandable — how many and what types of ships must be built.  Today politicians prefer to talk not about this, but about large-scale financial investment in the future fleet.  And in the very distant future at that.  From the point of view of the 2011 and 2012 election campaigns, it could be, that this is correct.  But from the point of view of the country’s security — hardly.”

Vedomosti takes its turn:

“. . . the idea of turning Russia into a great naval power has agitated the minds of the leaders of the Russian state for more than 300 years already.  The question is how acute this mission is in the 21st century and how Putin’s new slogans correspond to programs already adopted.”
 
“But the thing is not just the quality of the state program [of armaments], but also its strategic aims, which the government’s leader lays out.  We’d like the prime minister to formulate precisely what level of Navy presence in the world’s oceans and what he has in mind for its participation in the defense of bioresources.  Security of mineral and biological resources is an affair for civilian services and maritime border guards . . . .”
The business daily goes on to say corvettes, frigates, and landing ships are capable of completing “understandable and necessary missions.”  Still, it
says:
 
“Many experts consider extravagant the purchase of the Mistrals (four ships cost 2.35 billion euros), intended to support amphibious operations at a great distance from native shores.  Some admirals and VPK directors called for development of aircraft carrier groups.  Similar projects, the cost of which stretches to tens of billions of euros, will cause curtailment of construction of ships needed for the fleet, overloading and technological breakdowns in Russian shipyards.  In any case, Russia’s main problems have to be resolved on land.”
Sound advice given that the procurement problems of the Ground Troops and Air Forces, not to mention the RVSN, are just as serious and urgent as the Navy’s (if not more so).
 

The GOZ This Week

Putin at the Conference (photo: RIA Novosti / Aleksey Nikolskiy)

At United Russia’s interregional conference in Cherepovets on Monday, Prime Minister Putin reported on the Defense Ministry’s failure to conclude all its GOZ contracts by his most recent September 1 deadline.  Putin said, despite Defense Minister Serdyukov’s assurances that only OSK contracts need to be finished, agreements with MIT and OAK are still not finalized.

According to RIA Novosti and the stenogram, Putin told the United Russia audience:

“Unfortunately, full agreement between the Defense Ministry and producers by 1 September didn’t happen, as we arranged.  Disagreements continue there in several areas.”

“I want to direct the attention of all sides to this process:  firstly, we have a colossal amount of money being allocated for strengthening the country’s defense capability.  We’ve generally never allocated such money, well, in Soviet times, when they threw everything at the defense sector, there were comparable figures, but in recent history never, — 20 trillion to 2020.  We are constrained in other places – very many – either to stop or cut our expenditures, but we need to do this to guarantee our defense capability.  But we don’t need to absorb these billions and trillions, we need to provide items quantitatively and qualitatively.”

“At the same time, of course, the profitability of enterprises should also be guaranteed.  The obvious fact is a minimum of 15 percent.  It’s necessary to get this profitability so there are resources for development, for worthy wages for the workers.  I hope that soon, in the course of a week, this process will be concluded in shipbuilding, in missiles, and in aviation.”

“In 2012, orders, advances and other payments should be sent in full measure to enterprises not later than March.  I’m counting on this very much.”

Vedomosti’s source close to the Defense Ministry admitted a week won’t be enough to close contracts worth 500 billion rubles with Sevmash and tens of billions with MIT.

Kommersant’s source familiar with the course of negotiations with MIT confirmed that the process isn’t complete.  Another source said a contract for Yak-130 trainers is almost complete, but one for MiG-29K fighters isn’t.  Konstantin Makiyenko told Vedomosti the MiG-29K doesn’t matter since the Kuznetsov aircraft carrier is headed for repairs.

Most striking is Putin’s call, a plea almost, not to “absorb” the GPV’s 20 trillion rubles without supplying the new weapons and equipment the army needs.  He’s well aware the situation could be like water in sand.

Kicking the Defense Ministry and OPK

President's Meeting on the OPK

President Medvedev is irritated as ever that the Defense Ministry and OPK aren’t moving out smartly to rearm and reequip the Armed Forces.  He’s trying to kick them into gear, but can he get results where his predecessors either didn’t care or simply failed?

According to Kremlin.ru, Medvedev met this afternoon in Gorki with a host of government officials and industrial chiefs.  They included, inter alia, Sergey Ivanov, Anatoliy Serdyukov, Vladimir Popovkin, Nikolay Makarov, Denis Manturov, Yuriy Borisov, Sergey Chemezov, Sergey Nikulin, Mikhail Pogosyan, and Roman Trotsenko.

Medvedev’s opening monologue enumerated what’s been done for defense industry — providing a full state defense order and financial support, creating integrated development and production structures [OSK, OAK], etc..

Then the President says:

“However, despite all adopted measures, the state of defense production cannot be called good, all attending understand this.  There are objective reasons:  the deterioration of enterprises’ basic capital is nearly 70 percent (on average), in some enterprises it’s all much worse.  We still have not even managed to establish effective mechanisms to attract innovation and off-budget resources to the defense-industrial complex.”

Medvedev goes on to say that all relevant documents, including the GPV 2011-2020, have been signed, but the assembled group still needs to think about how to implement the GPV.  He reviews how he talked at the Defense Ministry Collegium in March about balancing producer and buyer interests, about justifiable and understandable prices.

But in many areas, says Medvedev, this has already become moot, and he intends to increase responsibility for the fulfillment of these obligations.

First, he wants a Federal Goal Program for OPK Development in 2011-2020.  Its focus is to be “real readiness” of the OPK to produce actual weapons and equipment.

Second, he wants the Defense Ministry to finish placing GOZ-2011 completely by the end of May, and advance payments issued to producers in accordance with the 2011 and 2012-2013 plans.

Work to date, he says, is going poorly and slowly.  He reminds the assembled that he told them about the failure of previous state armament programs:

“Today I want to hear from all present why this happened:  both from government leaders, and from industry leaders, who was punished for this and how.  Report proposals to me, if they still aren’t implemented, with positions, with the types of responsibility, completely concretely.  If such  proposals aren’t reported, it means [industrial] sector leaders and government leaders have to answer for it.”

It’s unacceptable, he says, that high-level decisions have been made, money allocated, but a product isn’t supplied.  He recalls his late 2009 Poslaniye in which he said 30 land- and sea-based ballistic missiles, 5 Iskander missile systems, nearly 300 armored vehicles, 30 helicopters, 28 combat aircraft, 3 nuclear submarines, one corvette, and 11 satellites would be delivered in 2010.  

Everyone here, says Medvedev, agreed with this, so why wasn’t it done.  He is, he says, waiting for an answer, and:

“. . . we have to answer for the duties we’ve taken on ourselves, we look simply in this sense absolutely unacceptable.”

Medvedev finishes by saying he knows military production is profitable, and it’s possible to attract strategic investors.  He says he wants to talk about how to stimulate investment.  The goal for the day is concrete reports on what’s been done on the level of those responsible for organizing work and correcting the situation in defense industry.

Where’s this leave things?

Not exactly throwing down the gauntlet, just another warning that he’s getting serious.  But it’s doubtful the government or defense industry will take Medvedev seriously until he fires a minister, other high-ranking official, or an important enterprise director.  And it’ll probably take more than a couple dismissals to get anyone’s attention.  Medvedev is running out of time on this account (as well as others).  Those he’d like to make responsible or punish will just take the tongue-lashings and wait him out.

GPV, Exports, and OPK Capacity

New Sub at Admiralty (photo: RIA Novosti)

This morning RIA Novosti reported on a familiar topic — the conflict between planned acquisition embodied in the State Program of Armaments, 2011-2020, and the Russian OPK’s capacity and capability to deliver it.  In this case, new diesel-electric submarines from St. Petersburg’s Admiralty Wharves.  Also familiar is one reason for the bind — a lingering priority on production for sale abroad.

A highly-placed OPK source tells the news agency that the GPV’s plan for conventional submarine deliveries might not be fulfilled due to Admiralty’s heavy load of orders.  The Russian Navy is reportedly supposed to get 20 new diesel-electric boats by 2020, and Russia also has ten foreign deliveries scheduled.  The OPK source notes that Admiralty has become a sole source for conventional subs, and he calls for shifting some sub production to Nizhniy Novgorod and Komsomolsk:

“In view of the large volume of new submarine construction for the Navy, and also for export, it’s essential to diversify production, utilizing, for example, the capacity of ‘Krasnoye Sormovo’ Shipbuilding Plant in Nizhniy Novgorod and the Amur Shipbuilding Plant in Komsomolsk-na-Amure.  Otherwise the state program in the diesel submarine construction area could be disrupted.”

RIA Novosti notes “Krasnoye Sormovo” built plenty of Soviet submarines, 280 in all, including 25 nuclear-powered ones.  Its last boat was a diesel-electric for China in 2005.  The plant also outfits Russian Navy and export subs with torpedo- and mast-related equipment.

The article also speculates that construction of French-designed Mistral helicopter carriers could be problematic if Admiralty is selected.  The shipyard is reportedly planning on new construction space on Kronshtadt for this reason.  The OPK source says Mistral would be Admiralty’s main concern, and occupy its main capacity and personnel.  So, he continues, it’s logical to send some orders (i.e. submarines) to other factories that have the capabilities.

Igor Korotchenko tells RIA Novosti “Krasnoye Sormovo” could provide extra buildingways if Admiralty can’t meet all its export contracts.  He says Admiralty is now building five subs under the GOZ, six for Vietnam, and:

“In the event new contracts are signed for sub construction with Venezuela and Indonesia there will be an obvious problem with inadequate buildingway space, and then a backup could be required.”

RIA Novosti notes rather dryly along the way that no Russian GPV has been fulfilled completely because of the country’s insufficient modern industrial capacity.

One wonders what, if any, work and investment would be required to bring “Krasnoye Sormovo” and Amur back into the sub-building business.