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President of Russia Vladimir Putin: Good afternoon, friends, Mr Chemezov [Rostec CEO], colleagues.

First of all, I would like to congratulate the large Rostec team, which comprises hundreds of thousands of workers, engineers and professionals, on the 10th anniversary of your corporation.

Thank you for your diligent work and very significant results, as well as for your contribution to the strengthening of Russia’s industrial and technological potential and defence capability.

When Rostec was established 10 years ago – I remember this very well – you were set large-scale systemic tasks concerned with the preservation and build-up of Russia’s technological advantages in the areas of our competence or where we could revitalise or create new competences.

We needed to bring together the capabilities and to consolidate the resources of hundreds of enterprises, to develop a flexible modern management system, revive the old and develop new cooperation ties, modernise our capacities and create a major personnel and technological reserve.

It should be said frankly that the task was far from simple, because Rostec took over companies that were ailing both economically and technologically.

Since then, Rostec has become a national leader in quality-based industrial development, boosting our high-tech exports.

New production facilities and industrial hubs, personnel training centres, as well as competitive products that enjoy demand at home and on global markets – all of this has been made possible thanks to your work and the corporation’s correct development strategy.

I would especially like to note the role of Rostec in equipping the Russian Armed Forces, the special services and law enforcement agencies. The corporation’s enterprises account for a quarter of the total volume of state defence order.

Your equipment and weapons systems have proved themselves effective and showed excellent combat characteristics during the special operation against terrorists in Syria.

At the same time, Rostec is consistently developing civilian production. I know that today its share has already reached 25 percent of total production, and by 2025, it is to reach 50 percent.

I want to tell you that this is an extremely important task, and we must constantly work on this. In no case should we allow a situation to occur, as the volume of the state defence order decreases over time, when directors of enterprises would come and ask: “What should we do?”

Now is the moment to think about what to do. And now we must do our best to get prepared for a certain deadline.

I would like to stress once again that increasing production of high-tech civilian and dual-purpose products and diversifying production is a task for the entire Russian defence industry.

Today Rostec is actively working on import substitution, forming a solid portfolio of orders from small and medium-sized production businesses.

The corporation is actively promoted in such areas as machine building, machine tool building, instrument making, aviation systems and components, electronics, pharmaceuticals and medical equipment.

It participates in programmes for the development and implementation of digital and so-called end-to-end technologies, which are the technologies of the future. You are facing a big and intense job of developing new markets, expanding your range of products and improving their quality.

At the same time, it is very important to further enhance the corporation’s efficiency. To ensure a stable financial position of enterprises and their sustainability, especially when it comes to enterprises located in single-industry towns.

Naturally, it is necessary to expand social and other programmes for employees and their families, for labour veterans and young people. I expect that in these matters you will work closely with the authorities of the regions where the corporation operates.

Friends, once again, I congratulate you all on the 10^th anniversary of Rostec’s establishment. I wish you every success and, of course, ahead of the coming holiday season, I would like to wish you a happy New Year.

I am glad to be able to present prestigious awards to the most distinguished and honoured employees of Rostec today. It is understandable that some people were unable to join us here today.

Let us hold an event for the people nominated for awards by the company’s management, although I realise very well that there are many more people who deserve to be rewarded.

Thank you very much.

Rostec State Corporation CEO Sergei Chemezov:Mr President, thank you very much for your assistance and support, without which Rostec would not exist. Thank you for your confidence.

Indeed, we have done a great deal in the past ten years and credit for this goes to our team of talented and highly qualified specialists that work all around Russia. The group whom you will present with awards today represent just a fraction. I would like to congratulate all of you as well.

Mr President, I am sure you remember how skeptical some Government members were when our corporation was established a decade ago. They thought it was a big bubble that would burst sooner or later and that it made sense to sell the assets that the state had at that time to private entities for next to nothing.

However, we proved through our work that we could make it and now the value of the assets that were transferred to us has tripled, reaching about three trillion rubles. Naturally, such figures attract investors and we have foreign investors in our enterprises.

We have French Renault in AvtoVAZ, Daimler and Pirelli in KamAZ. Quite recently, we sold a small package of shares of Russian Helicopters to the RDIF together with Arab funds.

Our Russian investors are not passive onlookers, either. They are actively taking part or would like to take part in managing our assets. We have good specific examples – the Kalashnikov Concern and the VSMPO-AVISMA Corporation.

I believe in 2018 we will make a proposal to sell part of our holdings. Once again, thank you very much for your assistance and support and please accept my congratulations on this anniversary.

And one more point, Mr President. You announced yesterday your intention to take part in the presidential election. Let me assure you on behalf of our team of thousands of people that we will support you. Thank you.

Viktor Kladov: Mr President,

Let me thank you on behalf of our team for the effective ongoing support for the development of the defence sector.

Firstly, the defence sector is indeed developing. Secondly, being responsible for international cooperation, I would like to thank you for your support in promoting our products to foreign markets.

Let me tell you a little story. Many years ago, we faced tough competition from the Americans for the Malaysian market. We offered the Sukhoi Su-30 jet. The Americans expected to win and all their newspapers ran headlines, “The Royal Air Force of Malaysia will fly Super Hornet F-18 jets.”

And then you arrived, you were eagerly anticipated, Prime Minister Mahathir hoped you would come, and now Russian Sukhoi Su-30 jets fly in Malaysian skies.

Also, the Prime Minister of Malaysia asked you then, “Is it possible to make it so that Malaysia has its own Yury Gagarin?” You answered in English without missing a beat, “We can do it.”

So we carried out a programme to train and launch a Malaysian national astronaut, which helped to us close the offset obligations under the project. Thus, thanks to state support, thanks to your help, we are promoting large international projects, which would be impossible without such support.

There are dozens of such stories, but I have limited time, so once again I would like to thank you and assure that Rostec will not let you down.

Thank you.

Alexander Kozin: Mr President and colleagues,

Today’s awards ceremony testifies that the previously adopted strategic decision of the President to consolidate all scientific, technical and production resources under Rostec corporation was correct, as confirmed by practice.

I bear in mind that such a high award is not a testament to my own work, but it is the result of the work of teams of engineers, developers, workers who, together with military scientists, over the years have created a highly effective and technological electronic combat complex, which has no analogues in the world. Today, this equipment is used by the Armed Forces, passed and proved its effectiveness in combat conditions.

I assure you that industrial enterprises are ready for the implementation of the 2027 Armaments Programme, based on the results of which we will ensure conditions for victory in information wars.

I wish you good health and good luck in reaching your goal.

Thank you.

Vladimir Putin: Friends and colleagues, let me congratulate you all again.

In the beginning, I recalled, and Mr Chemezov also reminded us, how the company was created. It is true that many had doubts, but many more supported this idea.

I remember what we were guided by back then. The logic was very simple. We could have lost several segments in the defence sector, without which we would not be able to create modern weapons systems; there would simply be none.

Our army probably could not have demonstrated its might and would not have looked so upgraded and effective, if we had lost enterprises critical for the state. This is the first thing.

Secondly, of course, it was very difficult for those who established the company, because the enterprises we spoke about, that became part of Rostec at first, were in a very difficult economic and financial situation.

Many people used to say then that, if we put it all together with all the problems, there would be no healthy organism. However, the situation gradually improved with state support, of course, and with the help of those who created the company and who worked there; and today this enterprise is now in truly excellent shape and makes a large contribution to the national defence capability and industrial development. It is completely evident.

There is another danger here: no one can expand forever and without control; there must be understanding of why the company has been created, where it should move and the parameters of its functioning, so that its work would be optimal, as efficient as possible, and competitive.

These questions always attract our attention, as well as the attention of the company’s management, the Russian Government and your main customers. I hope you take all these things into account and move forward as steadily as during the last ten years, relying on talented, hard-working and highly motivated people.

I would like to thank you once again for your work and to express my gratitude to all your partners, including foreign ones, who are here today.

This speaks to how the company’s future lies in creating a holding that can become a natural element in both the Russian and global economy.

Is it possible to do? It is necessary. I am sure you will achieve this goal if you continue to work hard and smoothly.

Let me congratulate you once again on your anniversary. Thank you for your work.