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President of Russia Dmitry Medvedev: Dear colleagues!

We met a month ago, just over a month ago. In general terms, I would like to say again that last year our military-technical cooperation with foreign states went very well indeed: its total volume was more than 8 billion 350 million dollars, about 800 million dollars more than the year before. Obviously this year will be difficult because of the fact that the entire world is experiencing a financial crisis that will affect the volume of procurement, the procurement of weapons. But we must nevertheless try to maintain the same level that we achieved last year and perhaps in some areas increase the amount of cooperation.

Let me briefly recall what you need to focus on and here our priorities have not changed. First, we must above all maintain the impeccable quality of our products, make agreements expeditiously and execute those agreements with precision. These contracts must be based on the genuine capacities of our defence industry. We must avoid inflated and untenable contracts. Our pricing should be responsible, transparent, understandable, absolutely clear, especially when there is so much tough competition between manufacturers. And, of course, maximum attention should be given adhering to the terms of these contracts. There should be no delays meeting delivery dates or ensuring supply.

In addition we should pay more attention to the markets; we need to look in different directions. We need to work on diversifying supply and to move into those markets where we have traditionally not been a factor, or where we have a presence but an insufficient one. That's where we must entrench ourselves.

It is obvious that in a global financial crisis export plans will have to be adjusted, not only by us but also by our partners in MTC. We must be ready to respond accordingly. The prices of both raw materials and components are likely to change. In any case, we must be determined to adapt to an evolving economic environment. We must be ready for this.

And there's another topic to which I would like to draw your attention. There are issues related to the situation in a number of adjacent regions, and in generally unstable regions and countries. Relations concerning MTC are regulated by special rules, in particular those established by presidential decree prohibiting the supply of military material or items that could be converted for military purposes, dual-use goods. We must pay scrupulous attention to such states and supplies that such states receive. I am referring to Georgia and the decree I signed on this subject.