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Saturday, July 09, 2011

Russian defense ministry scandal worsens

Dmitry MedvedevRussia's vast defense industry, a source of foreign exchange revenue even from areas of current conflict such as Libya and Syria, is on what appears to be a collision course with the Ministry of Defense.

Russian Defense Minister Anatoly Serdyukov faced a very public upbraiding from Russian President Dmitry Medvedev after it emerged the submarine manufacturer Sevmash had missed the target on the delivery of a submarine for the Russian navy.

Further angry exchanges followed complaints about the inflated prices demanded by military manufacturers, alleged corruption and malpractices at different levels of the defense manufacturing infrastructure.

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