- The first question is about the Russian-Indian cooperation,  the sale to India of the Admiral Gorshkov heavy aircraft carrier. Why this is so important for Russia, what kind of an aircraft carrier is it? Why is it that Russia does not need it and has decided to sell it off to India for 1.5bn dollars?
- This is a Soviet-made heavy aircraft carrier, one of the world' most modern vessels. Unfortunately, the Russian navy is unable to see it through to the end, to equip it with the necessary aviation equipment and to upgrade it to suit modern times. The issue of the vessel is not new for India - intensive negotiations have been going on for more than five years. India is interested in buying it, since it is becoming the leading power in the area, a leading sea power, among other things. It is building up its naval armaments, too. This is why the carrier is very important for India.
- What is happening? Russia cannot afford such a vessel, while India - and we have never considered India too advanced - can? Are we just selling off a ship we cannot afford to keep?
- The thing is that we are unable to see it though, for it to have the necessary characteristics, and we cannot afford to keep it. True, it is a shame. However, we have not only given up this ship. We have not completed the construction of a number of ships in the dockyard of Nikolayev in Ukraine. We have not finished the construction of ships started in Russian ship-building yards. This is a natural process these days, as not enough attention is being paid to defence and security issues. Needless to say, the Russian economy is in a sorry state at present.
- When we hear reports on a contract with India worth more than 1.5bn dollars, which is a huge sum of money, what is this money spent on later? Is it spent on targeted programmes - refurbishment, new hardware, or is it distributed among all needs, including social ones, like soldiers' payments.
- I have to say that military and technical cooperation is one of top state secrets. Even the president does not know everything . However, in general, money goes back to those who deliver the equipment. It goes back to the state and to enterprises which take part in the production. In the case of the Admiral Gorshkov carrier the Defence Ministry will receive its minimum, largely, for training crews and for other services. It is likely that the money will go past the Defence Ministry. It will go the state budget and to the budget of respective enterprises. 
So we are getting one-sided defence industry. Only the industry branches producing weapons that can be exported are surviving. However, if we are unable to deliver something for reasons of secrecy or we cannot export them - those branches are dying out. Mind you, both the air force and the navy comprise hundreds of enterprises. Some are responsible for control systems, others - for ammunition systems. This why the Admiral Gorshkov contract will support many enterprises, but not all. Unfortunately, there is no firm state policy aimed at comprehensive development.
- What should be done for industries - that, as they say, feed the country, like military and technical cooperation, so that they start yielding profit? What should be done for every Russian citizen to understand that it is a sphere we should work for and invest in?
- There is a whole set of measures to be taken here. First, we should develop a system of state orders, for the army to be equipped with modern weapons.
Had it not been for our export deliveries, most of defence industry branches would have been dead by now. The armed forces have not got the means to buy modern weapons. The latest helicopters were bought in 1994. As for the air force, they say two new aircraft were bought late last year.
The new samples that are being shown at air fairs abroad don't go to the armed forces. We sell them if there is a customer. This is how we support the industry. This is where our priorities lie, giving state orders to enterprises. we should simply increase the defence expenditure in the budget. I have already spoken about social issues. The military should feel they are cared for. And, secondly, the armed forces should receive new modern hardware if we care about our boys' safety.
Second. We should use military and technical achievements in economy. We should declassify a lot, although there are not that many top secrets these days. New technology should be introduced to civilian production. Here civilian branches of industry should join in. Finally, the system of military and technical cooperation should be made more flexible. We have Rosoboronexport, which is effectively a monopoly. Repairs, modernization or delivery of spare parts for Soviet- and Russian-made hardware - all this is a very rich market. Unfortunately, our head office, Rosoboronexport, cannot catch up with the needs of the existing market, especially within the CIS. However, other enterprises are not given a chance to do so.
On the whole, unfortunately, Russian economy is working in the interests of a group of people, but not those of the whole of the country. We should change the economy model. Take any state as an example. It places national security at the top of its economic agenda. Our economy is built in such a way that we can buy Chelsea [football club] or something like it, but we are selling our carriers abroad.