Putin calls for state-private partnership in military modernization

MOSCOW - Russia's military-industrial complex needs state-private partnership for industry modernization, Russian President Vladimir Putin said on Monday.

"So far, I have no joyful mood, to be honest. We know the problems of the weapon and ammunition industries," Putin told Deputy Prime Minister in charge of the military-industrial sector Dmitry Rogozin.

During their meeting in the Black Sea resort of Sochi, Rogozin proposed to attract private capital as a solution to the problems plaguing the industry, the Kremlin press service said.

Putin stressed that only direct state support could help the military-industrial sector survive the process of modernization painlessly.

Meanwhile, the president urged the industry to attract more private investment and ensure the social welfare of its employees. "You know how acute here (these problems are). State support and guarantees must be given to these enterprises," the Interfax news agency quoted Putin as saying.

"This is a sector which used to play, plays and will be playing a very important role in the country's security," he added.

The Russian government has allocated 20 trillion rubles ($645 billion) for a rearmament program that will last until 2020. The program envisions that 70 percent of the Russian armed forces' weaponry and equipment will be up-to-date by the time of its completion.