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President Vladimir Putin: Generals, admirals, and officers,

At our traditional meeting today we will summarise the results and outline the main areas of development of the Armed Forces of the Russian Federation.

I would like to say right away that I judge the work of the military department this year to be satisfactory. Our plans are gradually being realised, and our main policy is for fundamental development of the army and navy, to reequip them and strengthen their personnel. We have determined these tasks to be vital both for the Armed Forces and for the country as a whole. We have determined this, because for us it is obvious: effective, efficient Armed Forces are a very important factor that protects Russia from any forms of military and political pressure or potential aggression. A factor that to a large degree is important to strengthen our position in the world.

I would like to note that this year was in many ways a decisive one for realising political decisions in the sphere of military organisation. I want to give my thanks for the fact that this work was carried out energetically and at the necessary level. The structure of the Defence Ministry has become more functional, more efficient, and the military training of the army and navy has become more intensive, which is very important. Not everything went smothly, but the troops showed their increasing capabilities in large-scale training, including with the participation of our foreign partners. We have achieved noticeable progress in cooperation with our allies in the Collective Security Treaty Organisation. The deployment of Russian bases has seriously strengthened the system of collective security in Central Asia. It is clear that with this help, conditions are being created to neutralise terrorist and extremists attacks in the region, and on the whole the defence potential of Russia and its allies in the southern strategic area is increasing.

Dear comrades! The level and scale of tasks before the ministry require active work across the whole spectrum of military organisation.

At the same time, I would direct your attention to a number of key areas.

Firstly: by the end of 2005 we must completely bring the personnel, structure and number of troops into line with the nature and tendencies of existing and predicted threats.

Secondly: the primary task of the interior management bodies is still to increase the efficiency of troops, mainly of alert units and formations, units which are designed to be the backbone, the primary strike force of our army. I would ask you to always remember that military training should take into account both modern experience and tendencies in the development of military art.

Thirdly: we have taken significant decisions in equipping troops with new arms and military equipment. These programmes have already been put into practice. Positive examples I can name are the work on a base version of the rocket complex of the Land Forces, the creation of a new generation of infantry weapons, means for individual defence, and the latest successful tests of the naval nuclear rocket system.

In reequipping the army, we are guided by the significant increase in financial and economic capabilities. The growth in expenses on technical equipment of troops planned for 2005 will exceed the figures for recent years by more than third.

I must tell you that these resources, even though they rely on the growing capabilities of the economy, as I have already said, are not easy to allocate. They are taken from the social sphere, from the economy itself, which could develop more swiftly if it were not for the requirements that we are discussing. We realise that these are compulsory measures, and that we must support, and must continue to support, the army and navy. The issue is only that these resources need to be spent assiduously and effectively, and made use of economically, ensuring the maximum return.

In connection with this, we must also complete the move to uniform systems of base and technical protection for the army and navy, and other law-enforcement structures.

And finally, the last point. The development of the system of social security for the Armed Forces is one of the most important tasks in one of the most important areas of our activity. This issue was and remains the founding stone of our military organisation, in increasing the effectiveness and prestige of the Armed Forces. The decision to increase the salary of soldiers has been passed. Along with this, I ask you to pay attention to and take under special control the realisation of the programme of accumulated mortgage loans to soldiers, and further developing of the service housing fund. I would note that the according funds have been provided for in the budget, and the Government has allocated an additional 2 billion rubles to this.

In conclusion, I would like to stress: in modernising military organisation of the state, it is important not to lose the rate that has been achieved. Our actions must be consistent and timely. Only in this way can we strengthen the defence potential and security of the country, and ensure steady and stable development for it.

I would like to thank you for your work, for your service. I am certain that you will continue to carry out the tasks set before you efficiently and to a high standard.

Thank you very much, and thank you for your attention.