Defense Industry Conference in Almaty Addresses Procurement Challenges

At a conference in Almaty, officials discussed strategies to enhance the operations of defense enterprises, Orda.kz reports.

During the Association of Enterprises of the Defense Industrial Complex conference, Defense Minister Ruslan Jaqsylykov addressed government procurement issues.

Defense manufacturers expressed concerns that the current one-year contract duration creates difficulties in fulfilling complex, high-technology orders that require substantial component supplies.

Logistical challenges frequently result in contractual obligation breaches.

The Defense Minister suggested extending contract terms to three years. He also highlighted that some companies registered as defense contractors are not manufacturing products.

Today, the defense industry is represented by 124 companies, but not all of them are real manufacturers. Some of them are fixated on receiving money under the state defense order without creating a product, The Ministry of Defense press service quotes Jaqsylykov as saying.

To address this issue, authorities will establish a commission comprising representatives from the Ministry of Defense, the Prosecutor General's Office, the Financial Monitoring Agency, and the Atameken National Chamber of Entrepreneurs to investigate such companies.

Regarding production development, Jaksylyqov proposed creating an industrial cluster based at the Semipalatinsk Tank Repair Plant.

This facility would manufacture armored vehicles and repair weapons, artillery systems, and transmission power units. The Minister emphasized that even when technologies are purchased abroad, subsequent production localization should be within Kazakhstan.

In late February, President Qasym-Jomart Toqayev signed a decree transferring responsibility for state defense procurement to the Ministry of Defense.

Original Author: Ruslan Loginov