“In 2024, we project that productivity in the defense industry will increase by at least 200 million drams (approximately $520,000) compared to last year,” Armenian Minister of High-Tech Industry Mkhitar Hayrapetyan announced in parliament.
He acknowledged that in recent years, significantly less funding was allocated to research and testing in the military-industrial complex than budgeted. The state budget includes an allocation of 4.5 billion drams (approximately $11.7 million). According to the minister, additional legislative regulations are needed to make the sector more attractive for business. This would incentivize entrepreneurs to seek government grants and fulfill related contracts.
In recent months, the development of the defence industry has been a frequent topic in parliamentary discussions. Opposition members have expressed concerns, while ruling faction deputies insist the sector is advancing at an accelerated pace, with new types of weaponry being produced.
“Yes, we have domestically produced weapons, and we have established mass production. Moreover, we even have serial production of fifth-generation weapons,” stated MP Armen Khachatryan.
Opposition criticizes 2023 defence industry performance
The Minister of High-Tech Industry disagreed with opposition MPs’ claims about the defence industry’s lack of results in the past year. He suggested they consider that most contracts with executing companies were signed at the end of 2023:
“Overall, last year’s expenditure reached 1.1 billion drams (approximately $2.9 million).”
Mkhitar Hayrapetyan also announced that contracts for 2024 have already been signed. According to him, companies that received positive evaluations are expected to be provided with an advance payment of 919 million drams (approximately $2.4 million) by December 10.
He reminded that parliament recently amended the law “On the Defense-Industrial Complex” to “encourage innovative solutions in the military industry.”
‘Tangible and measurable results achieved’
The minister insists that the defence industry has achieved significant progress:
“These are tangible and measurable results, an objective reality. But posing for photos with various new developments is not my style.”
He also believes that officials should exercise restraint when discussing successes in this field, acknowledging that “in some cases, the temptation to deliver grandiose speeches is strong.”
Ensuring continuous development is key
Neither the minister nor ruling faction MPs are willing to discuss specific areas of development in the defence industry openly.
“Naturally, I cannot disclose which areas are being developed during an open session. If certain weapons have already been tested within the armed forces, the next step is to use them effectively,” stated Andranik Kocharyan, Chair of the Defence and Security Committee.
He noted that the sector’s appeal to businesses has grown in recent years:
“Many private companies in Armenia are eager to invest in the defence industry. We must ensure this appeal is not lost due to the actions of a single official. We need to prevent situations where someone submits an application and waits an entire year without receiving approval.”
“Defense industry must become a key pillar of Armenia’s security”
The Deputy Chair of the Defence and Security Committee, Armen Khachatryan, believes that in the coming years, the military industry must become a key pillar of Armenia’s security, science, and economy:
“If necessary, we should also develop a strategy for the future growth of the defense industry.”
According to him, the state is now paying significantly more attention to this sector than it did two years ago, which is evident from the increased funding provided by the government:
“Recently, the defence industry has made significant progress. We have outstanding specialists in information technology, excellent managers, and skilled engineers. There are also investors who are directing substantial resources into this field, naturally with the aim of generating profit. We don’t talk about this much, but we are working on it day and night.”
https://jam-news.net/mass-production-of-weapons-established-armenias-defense-industry-in-focus/