Economy Minister German Gref, Defense Minister Sergey Ivanov, Finance Minister Alexey Kudrin, Interior Minister Rashid Nurgaliyev, Director of Russia's Foreign Intelligence Service Sergei Lebedev and Director of the Scientific and Technical Service of the Federal Security Service Nikolai Klimashin took part in the meeting.

Mr. Putin said the Russian government set a goal of strengthening the country’s defense capability, Channel One reported. According to him, defense spending will also be increased significantly in 2005. The Russian Defense Ministry’s budget is RUR 380bn (about $13.1bn) in 2004.

According to Defense Minister Sergey Ivanov, two divisions numbering 50,000 people will be transferred to contract service next year. RUR 17bn has been allocated for this purpose.

Most probably, the country’s defense capability will be increased partly through the reduction of draft deferments. It seems we will see a total mobilization instead of a professional army. Perhaps, daytime students, children of elderly parents, and fathers of infants will now have to serve. Today, about one-tenth of draft-aged young men go to the army.

Starting 2008, the term of service for contract soldiers will be reduced from two years to one year. To achieve that goal, the number of draftees will have to be doubled. Meanwhile, the draft situation is worsening. This year, the country will face a so-called ‘demographic hole’, after which the number of draftees will be falling by several thousand people every year. As a result, Russia’s armed forces will be half-manned by 2013-2015.